Editing Alejandro Toledo (section)

=== Labor unrest ===
Despite unprecedented, strong, and consistent economic growth under his leadership, Toledo dealt with much labor unrest during his presidency as workers demanded higher wages and the fulfillment of campaign promises. The crisis underlined a basic flaw in Peru's economy as pointed out by ''[[The Economist]]'', which noted that "some 70% of output falls within the grey or ''informal''" economy, and thus escapes tax. Tax-collections, at below 12.1% of GDP, are stagnant, with most coming from a handful of large, formal companies. Evasion is widespread, particularly among better-paid independent professionals." Tax collections by Toledo's government could simply not cover the wages that had been promised to civil servants.<ref>"[http://www.economist.com/node/1878504 Peru: Running Out of Options.]" ''The Economist'' 26 July 2005. Retrieved 27 June 2011</ref>

Even as the Peruvian government was taking in too little money to pay civil servants, the country saw its cost of living increase dramatically during the early years of Toledo's administration. These hardships, combined with increasing unemployment and stagnant wages caused the general public to doubt that Toledo was living up to lofty campaign promises. By 2003, Toledo's approval rating had fallen below 10%, the lowest of any South American president at the time.<ref>Sara Benson, Paul Hellander, and Rafael Wlodarski (2007) [https://books.google.com/books?id=INCgSn3BRwwC&dq=alejandro+toledo&pg=PA39 ''Peru'']. Retrieved 27 June 2011. {{ISBN|978-1-74059-749-4}}</ref>