The report on poverty, published by Caritas Malta, proposed that the mandatory minimum wage be raised from €158 to €180.

That same report highlights the fact that poverty in Malta and Gozo is a reality. The areas where poverty is becoming endemic have also been identified. But the proposal to raise the minimum wage has been met with objections by employers, who argue that increasing wages would increase their overheads and payroll costs. This cost, they say, will still be passed onto the consumer, who will end up paying more for goods and services, once they go up in price – in short, inflation.

The same argument had already been made by the International Monetary Fund in 2009, before the financial and economic crisis began to bite. The IMF said that Malta had made good progress in terms of the economy, but had to resist the temptation to increase wages and salaries, as this would “erode competitiveness and cause inflation”.

At the end of the day, it would make no sense for the minimum wage to increase, at least right now. Businesses and employers are still trying to come to terms with water and electricity bills, and while they are known to exaggerate issues, this seems like a genuine problem. Employers will have to simply charge more to make up for any increases they incur. If that happens, then people will end up with more money in their pockets, but it will be worth less and purchasing power will decrease.

Caritas’ proposal is well intentioned. It cannot be easy to watch people live in abject poverty and say nothing. But this is not an issue which money can be thrown at. Caritas knows and has tried very hard to get the message across, that even with social benefits and food distribution, some families at the lower end of the socio-economic scale, are finding it difficult to make ends meet.

But at the same time, there are new realities. We talk about commodities and necessities and a decent standard of living. But the line really has become blurred. What defines a commodity and what defines a necessity. Is a mobile phone a necessity? Yes it is. But what of the horrible bogeyman that is materialism. Do we need a €30 phone? Or do we need to spend €500 on one? Do we need the latest pair of trainers and the latest games console? Do people need to smoke a packet of cigarettes a day? Do people need to gamble? Do people need to buy enough jewellery to anchor a ship in port? No, the answer is simple.

What we do need to do is ensure that those people who are at the very bottom rung, do actually have a chance of bettering themselves. Some cannot; they have been brought up in a world which is too much for them to handle and prefer a life of squalor to the rat race which is outside their tenement. But others do want to better themselves and they should be given every possibility to do so. No, at present, the minimum wage should not be increased. The market is too volatile and tipping up the apple cart will ruin the slow but steady progress we are making while others around us flounder.