Log in

View Full Version : Wikileaks: USA blocked Haitian Minimum Wage Increase



TheOneWhoKnocks
23rd January 2013, 02:26
source (http://www.kulturekritic.com/2013/01/news/the-u-s-government-stopped-a-minimum-wage-increase-in-haiti/)


In 2009, the Haitian parliament unanimously passed a measure that would hike the Haitian minimum wage to $5 a day. Yet much as the United States government mobilized to protect Big Oil’s profits a few years earlier, American diplomats immediately protested the hike in wages. Contractors for large American clothing firms like Fruit of the Loom, Hanes, and Levi’s began protesting the increase in the minimum wage, aggressively lobbying the parliament and the populist Haitian president, René Préval, to reverse course. They were soon joined by American diplomats who began to lobby the Haitian government as well, arguing that it would be too costly for textile manufacturers [ . . . ] The [Wikileaks] cables proved beyond any doubt what had seemed obvious. Behind the scenes, American officials had mounted a full-scale assault on the minimum wage increase, financing studies against it and pressuring the president to oppose it.

RadioRaheem84
23rd January 2013, 03:00
:cursing: These people are relentless in not letting the third world progress in any way. Where is the natural course of private enterprise lifting people out of poverty by raising living standards? It doesn't seem like the market's invisible hand is working.

RadioRaheem84
23rd January 2013, 03:16
I want to give the US government the benefit of the doubt. Let's play devils advocate here because it will help us understand our opponents reasoning and challenge their presumptions, whether they actually believe in it or not.

Just what is the reasoning behind the opposition? Why does it not make economic sense from a purely business perspective? I don't mean the answer we all know, that it will cut into profits, but the libertarian spin on why the wage should remain low?

RadioRaheem84
23rd January 2013, 03:31
Does anyone have a link to these US AID studies? I would like to know what their rationale is.

TheOneWhoKnocks
23rd January 2013, 03:34
I think the main justification is that it transfers monies that could be utilized for firm savings/investment to the consumption needs of individuals, thus discouraging prospective investment and slowing economic growth.