Thursday, May 27, 2010
Government, Falling Wages and The Black Market
I got some more information recently about the cost of living here. Out of a 700 Lei wage per month, about 400 goes to housing and utilities. This leaves only 300 Lei for food and other necessities. Ion confirmed that many deal with this problem by eating large amounts of bread. “Romanians need very little”, he told me. Despite having to cut this already low wage rate, the government appears to be finding new ways to spend like a drunken sailor. Recently, I sat in on a meeting with a Romanian government official, who said that the government had just authorized funds, for electronic information, and payment system for all citizens, as well as a nationwide electronic voting system. Even though money is tight, the restaurants around town remain full. Ion seems to think that this has something to do with the black market. Indeed, it seems to be a rather powerful institution here. It is possible to see brand new empty office buildings with nice cars parked out front. Apparently these “companies” are simply fronts for black market activity. Mysteriously, Government officials seem to look the other way as these companies have healthy profit margins, but no (official) sales, and pay no (official) taxes. Other than that, all is rather quiet here, day to day at work. Because the embassy celebrates both American and Romanian holidays the upcoming weekend is apparently another long one.
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