What are the reasons for the weak domestic demand at present? Among the many reasons, the most important one is that the public do not know what will happen to them next and hope to preserve their money against unpredictable risks in the future. In recent years, Chinese society has undergone great changes. The old social security system has broken down and as a result the public feel very unsafe and uneasy about housing, education, medical care, pensions and employment.

Therefore, to boost the domestic demand, the most effective measure that the government should take is to improve the social security system and offer people more welfare benefits. However, freezing the minimum wage sends a signal to the public that, in order to deal with the current financial crisis, the government will offer less security and welfare to employees for the sake of employers.

Contrary to what the government hopes for, the decision to freeze the minimum wage could drag China into a vicious circle where consumption shrinks, business profits fall and companies fire workers or close down.

Chen Cai (Yanzhao Metropolis Daily): To fight through the difficult times together is the attitude that the government is advocating. However, in reality, every time a crisis hits, it is always common workers who are the first to suffer. Some government departments always try to relieve the financial pressure on enterprises by cutting workers' benefits, but seldom do we see state-owned enterprises offer to cut salaries of high-ranking executives. The difficulties in hard times ought to be shared by the whole society, but they are unfairly imposed on the weakest.

Although fairness and efficiency are sometimes in conflict, it is improper to always sacrifice fairness for efficiency. The minimum wage is an important part of the social security network that has an extensive impact on common workers' living conditions. It should not be used as a means to cope with the current economic slowdown. The state needs to cut taxes on small and medium-sized enterprises and increase financial support to help their survival.

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