Wednesday, March 14, 2012

Neoliberalism Hits a Speedbump?

The Wall Street Journal has an interesting article today, which begins, " More Asian governments are pressing businesses to hike wages as a way to prevent outbreaks of labor unrest, raising the specter of higher manufacturing costs for global companies -- and the products they sell world-wide."

The problem is that people in Asia lack the necessary naiveté to make capitalism work efficiently; i.e. to maximize exploitation.

"Political leaders say they have little choice but to act, as voters grow savvier about wage gains" elsewhere, which they can research on the Internet. Recent protests by low-income workers in places like Indonesia and Thailand have added to pressure on governments to raise wages."

"There is a genuine feeling that the low-wage segments [of Asia's population] haven't made much progress in recent years" as the gap between rich and poor has widened in some areas, said Edward Teather, an economist at UBS in Singapore."

What is wrong with Americans that they can be bamboozled to think that the current neoliberal policies are constructive of anything more than more of the same?

James Hookway, Patrick Barta, and Dana Mattioli. 2012. "China's Wage Hikes Ripple Across Asia." Wall Street Journal (13 March).


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