We live in a global economy, as pundits are so fond of proclaiming. The global economy is the delightful playground of multinational corporations. They're able to drastically lower their labor costs by outsourcing work to the world's poorest and most desperate people. And they're able to escape paying taxes, like normal businesses do, by deploying armies of lawyers to play various countries' tax codes off against one another. The result is that money that should, in fairness, go to workers and governments ends up in the pockets of the corporation. The global economy is extremely advantageous to corporations, who owe no loyalty to anyone or anything except their stock price; it is disadvantageous to normal human beings, who exist in the world and not as a notional accounting trick.
In America, we accept the minimum wage as a given. It enjoys broad support. It is the realization of an ideal: that there is a point at which low pay becomes a moral outrage. (Where that point is, of course, is up for continuous debate.) Do not mistake the minimum wage for some sort of consensus of nonpartisan economists; it is a moral statement by our society. A statement of our belief that the economically powerful should not have a free hand to exploit the powerless.
Yet we are all hypocrites. We protect ourselves with a minimum wage, while at the same time enjoying the low consumer prices that come with ultra-low wages being paid to workers abroad. Our own purchasing habits reward companies for paying wages that are sure to keep their workers in poverty for life. We soothe ourselves by saying that these desperately poor workers are still better off than they would be without a job; yet we would reject that argument if an employer here tried to use it to pay us less than the minimum wage. We simply do not care if people halfway around the world who we do not see are exploited, if it saves us money.
Many business interests say that raising the wretched wages in one country will simply send the factories to another, even poorer country. That's a great reason to institute an international standard that would render that strategy moot. Bangladesh, where more than a thousand garment workers died in the Rana Plaza collapse thanks to the cutthroat quest to drive down prices, represents the bottom of the international manufacturing economy. The minimum wage of garment workers there is less than $50 per month. For all of our lofty rhetoric about a connected world and freedom and opportunity, we happily acquiesce to a system which keeps these workers— desperate, poor, and with little bargaining power— trapped in poverty. Can you live on $50 per month in Bangladesh? Yes, clearly. You can live in poverty.
Opponents of all sorts of "living wage" laws say that those who would advocate such a thing misunderstand the inherent economic forces of capitalism. Not true. We understand them all too well. We understand that, as history has amply demonstrated and continues to demonstrate, absent regulation, economic power imbalances will drive worker wages and working conditions down to outrageous and intolerable levels. People will, indeed, work all day for two dollars if that is their only option. That does not make it morally acceptable to pay people two dollars a day. Capitalism must be forcefully tempered by morality if we are to claim to be a moral people.
The system that we have— in which the vast bulk of profit flows to corporate shareholders, rather than workers and governments— is not a state of nature. It is a choice.
by Hamilton Nolan, Gawker | Read more:
Image by Jim Cooke. Photo via AP
