14851: Vilaire: Regarding the Minimum Wage (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Vilaire@aol.com


Jean Succar writes:

"Raising minimum wages is a band-aid to tackle inflation. Instead of working
on fiscal, monetary and economic changes to to shock the economy the
governement is just discouraging direct foreign ivestment in Haiti."

Mr. Succar, here's a question for you: When's the last time the minimum wage
was raised in Haiti? Of all the things we can accuse this government (and
previous ones), raising the minimum cannot figure among them. In fact, all
Haitian governments have had dismal records when it comes to minimum wage
policy. The minimum wage was set back in the mid-1990s at 36 gourdes a day.
In other words, in real terms Haitian workers are earning less today than
they did back in the 80s. Do you really think it's sound macro economic
policy to not adjust the minimum wage with respect to economic realities? Do
you think the minimum wage in the US has always been what it is today? Why do
you think it's OK for industrialists, factory owners, supermarkets,
restaurants, tap-taps, and even utility companies (Teleco, EdH) to adjust
their prices, but it's not cool to adjust wages?

I agree that there are various monetary and fiscal policy tools a government
can use to tackle economic issues. However, holding wages steady, trying to
balance everything on the back of workers is not just unjust, it's downright
bad policy that will ultimately prove unworkable and destructive to the whole
of society.

Best,
Marx-Vilaire