Comrade-Z
24th September 2006, 01:13
So, I was at a meeting today, and, to be quite honest, there were a few times during the meeting when my mind started to wander. However, being at a meeting of radicals, my mind drifted to radical topics, and this is what I was thinking...
Wouldn't it be kickass if an international movement existed to establish indexed wages in 40+ countries around the world? You see, this is my thinking:
It is obvious to some 80% of the U.S. that the minimum wage needs to be increased. This is without question. However, it seems to me and others that it is infuriating to always have to struggle for a new minimum wage increase every five years or so just to keep up with inflation. The minimum wage should at the very least maintain itself in real-wage terms. In the early '90s workers fought for a federal minimum wage of $5.15 in real wage terms (that means, $5.15 in 1993 dollars). What they have now is $5.15 in 2006 dollars. That's not what they fought for. Their employers, by doing nothing in order to compensate workers' wages for inflation, have abrogated this minimum wage law, in essence, if not in legal terms. Therefore, I think it is of utmost importance to have a minimum wage that is indexed to the Consumer-Price-Index (CPI). When the cost of goods goes up, when the CPI goes up, the minimum wage should automatically follow. Indeed, ALL wages should behave likewise. Wage indexing should be a part of every employment contract, as a matter of course. The minimum wage and all other wages would be revised every month in accordance with monthly CPI data. In addition, there would need to be a civilian oversight board to make sure that the CPI data is being compiled correctly. Belgium already has an indexed minimum wage, so their system can be used as a guide, more or less.
This indexed minimum wage would not be cemented to that index, though. There would always be the possibility of the minimum wage being indexed higher. For instance, if it starts with an index of $5.15 in 1993 dollars ($7 or $8 in 2006 dollars), there would always be the possibility of raising the index to, let's say, $7.50 in 1993 dollars ($10 in 2006 dollars, possibly $13 in 2010 dollars, who knows....) Likewise with any other wages.
The counter-argument to this from the business community might be something like this: "That's an insane policy! Don't you know that this will just cause inflation?!" Why would it cause inflation? Presumably, business owners would try to raise prices in order to gain greater profits or maintain current levels of profits. This aggregate increase in prices would raise the CPI, which would raise wages, which would prompt business owners to reclaim some of their profits by raising prices again, and so on. A concrete way to prevent this runaway inflation would be to stipulate that companies cannot raise their prices to the extent that the overall CPI increases over 100% per year, upon pain of death and international class war. What we can also clearly realize is that:
1. Only the well-off, who have substantial savings, would be harmed by this. Everyone else would not be harmed by it because their wages would increase in accordance with the general increase in prices.
2. The business community's quest for profit would be the culprit of any inflation that occured. There would be no problems if companies would simply be content with current levels of profit or extracting more profit through productivity increases rather than real wage decreases. The demonstration of these facts would call into question the very legitimacy of that quest for profit.
Another counter-argument might run like this: "Don't you know that, by pressing these wage demands, you will drive capital out of your country and into foreign countries with more "competitive" labor markets?!" This is where the international scope of this movement comes into play:
What if the same demands were being made in China? In India? In Britain? In the EU countries? In the Latin American countries? What comparative advantage, then, would there be for companies to outsource jobs?
This is, then, what I envision:
First, an international class war.
Second, an offering of a temporary peace treaty from the international proletariat to the governments of the world. This treaty would stipulate the following:
1. For those countries without a minimum wage, a minimum wage that the populace also democratically deems a living wage shall be speedily established.
2. The minimum wages of all the countries invovled shall then be increased by 50% in their respective currencies.
3. Each country's wages shall then be indexed to each country's respective CPI. Furthermore, elected civilian committees shall be tasked with overseeing the calculation of the monthly CPI.
4. A rise in the CPI of over 100% in any year in any country will entail an abrogation of the treaty.
5. This treaty will not go into effect until all countries involved have passed laws in each of their respective governments and are signatories to this treaty.
6. Failure of any government to approve this treaty, or future abrogation of this treaty by any one government, will entail the continuance/recommencing of the international class war involving ALL the signatory countries, except in cases where revolution entails abrogation of the treaty on the part of the workers (see below).
What would the international class war entail? At the very least, general strikes in every country involved, and possibly further actions such as road blockades, workplace occupations, workplace appropriations, etc. There would be no maximum thresholds to the extremity of the international class war, only minimum thresholds. If, in the course of these events, revolution is subsequently deemed within reach and desired by the populaces, GREAT!!! Then revolution it is for those who desire it. Those who don't wish to go that far can stick to the original demands with the remaining reformist countries (since the reformist countries won't have to worry about capital flight going to the revolutionary countries who are "opting out" of the treaty and going further). If the governments of the remaining reformist countries try to declare war on the revolutionary countries, then it's international class war once again!
Wouldn't it be kickass if an international movement existed to establish indexed wages in 40+ countries around the world? You see, this is my thinking:
It is obvious to some 80% of the U.S. that the minimum wage needs to be increased. This is without question. However, it seems to me and others that it is infuriating to always have to struggle for a new minimum wage increase every five years or so just to keep up with inflation. The minimum wage should at the very least maintain itself in real-wage terms. In the early '90s workers fought for a federal minimum wage of $5.15 in real wage terms (that means, $5.15 in 1993 dollars). What they have now is $5.15 in 2006 dollars. That's not what they fought for. Their employers, by doing nothing in order to compensate workers' wages for inflation, have abrogated this minimum wage law, in essence, if not in legal terms. Therefore, I think it is of utmost importance to have a minimum wage that is indexed to the Consumer-Price-Index (CPI). When the cost of goods goes up, when the CPI goes up, the minimum wage should automatically follow. Indeed, ALL wages should behave likewise. Wage indexing should be a part of every employment contract, as a matter of course. The minimum wage and all other wages would be revised every month in accordance with monthly CPI data. In addition, there would need to be a civilian oversight board to make sure that the CPI data is being compiled correctly. Belgium already has an indexed minimum wage, so their system can be used as a guide, more or less.
This indexed minimum wage would not be cemented to that index, though. There would always be the possibility of the minimum wage being indexed higher. For instance, if it starts with an index of $5.15 in 1993 dollars ($7 or $8 in 2006 dollars), there would always be the possibility of raising the index to, let's say, $7.50 in 1993 dollars ($10 in 2006 dollars, possibly $13 in 2010 dollars, who knows....) Likewise with any other wages.
The counter-argument to this from the business community might be something like this: "That's an insane policy! Don't you know that this will just cause inflation?!" Why would it cause inflation? Presumably, business owners would try to raise prices in order to gain greater profits or maintain current levels of profits. This aggregate increase in prices would raise the CPI, which would raise wages, which would prompt business owners to reclaim some of their profits by raising prices again, and so on. A concrete way to prevent this runaway inflation would be to stipulate that companies cannot raise their prices to the extent that the overall CPI increases over 100% per year, upon pain of death and international class war. What we can also clearly realize is that:
1. Only the well-off, who have substantial savings, would be harmed by this. Everyone else would not be harmed by it because their wages would increase in accordance with the general increase in prices.
2. The business community's quest for profit would be the culprit of any inflation that occured. There would be no problems if companies would simply be content with current levels of profit or extracting more profit through productivity increases rather than real wage decreases. The demonstration of these facts would call into question the very legitimacy of that quest for profit.
Another counter-argument might run like this: "Don't you know that, by pressing these wage demands, you will drive capital out of your country and into foreign countries with more "competitive" labor markets?!" This is where the international scope of this movement comes into play:
What if the same demands were being made in China? In India? In Britain? In the EU countries? In the Latin American countries? What comparative advantage, then, would there be for companies to outsource jobs?
This is, then, what I envision:
First, an international class war.
Second, an offering of a temporary peace treaty from the international proletariat to the governments of the world. This treaty would stipulate the following:
1. For those countries without a minimum wage, a minimum wage that the populace also democratically deems a living wage shall be speedily established.
2. The minimum wages of all the countries invovled shall then be increased by 50% in their respective currencies.
3. Each country's wages shall then be indexed to each country's respective CPI. Furthermore, elected civilian committees shall be tasked with overseeing the calculation of the monthly CPI.
4. A rise in the CPI of over 100% in any year in any country will entail an abrogation of the treaty.
5. This treaty will not go into effect until all countries involved have passed laws in each of their respective governments and are signatories to this treaty.
6. Failure of any government to approve this treaty, or future abrogation of this treaty by any one government, will entail the continuance/recommencing of the international class war involving ALL the signatory countries, except in cases where revolution entails abrogation of the treaty on the part of the workers (see below).
What would the international class war entail? At the very least, general strikes in every country involved, and possibly further actions such as road blockades, workplace occupations, workplace appropriations, etc. There would be no maximum thresholds to the extremity of the international class war, only minimum thresholds. If, in the course of these events, revolution is subsequently deemed within reach and desired by the populaces, GREAT!!! Then revolution it is for those who desire it. Those who don't wish to go that far can stick to the original demands with the remaining reformist countries (since the reformist countries won't have to worry about capital flight going to the revolutionary countries who are "opting out" of the treaty and going further). If the governments of the remaining reformist countries try to declare war on the revolutionary countries, then it's international class war once again!