The Effects of Cutting Wages in a Pandemic Crisis: The Case of COVID-19

The extensive damage of COVID-19 is incalculable financially and economically. This research elaborates on different points of view about the impact of cutting wages gradually and thoroughly. We try to assess how the cutting of salaries can generate a negative effect directly on the consumption levels. At the same time, the reduction in power purchasing parity and income inequality. Meanwhile, the generation of inflation dizzily until possible hyperinflation from rampant speculation and price manipulation. Finally, this research supports that the cutting of salaries cannot keep long because it can generate a high impact on the GDP performance and fast expansion of poverty in the short run immediately.