--- Elisabeth Carvalho wrote: > > Mario G.'s contention that there is no solution to > the labour component of industry except in response > to a total free market principle of demand and > supply, is not entirely true. > Mario clarifies: > Elisabeth, I did not say there was no solution. What I said was that you elites had no solution:-)) > To begin with, since you seem to have been absent from class when this part of history was being discussed, your theories have ALREADY BEEN TRIED in several major economies, including India, China and Russia. The theories HAVE BEEN DISCARDED because they resulted in massive economic stagnation. Now here you come, with support from Goa Su-raj [visions of a new "Raj" dancing in your heads:-))] advocating the same failed policies of "we know what's best for everyone else, better then they do". > The most efficient allocation of materials and labor takes place when demand and supply freely set the prices at which these resources clear the market. The more political coercion and interference the less efficient the process. > The opinions of elite individuals, regardless of how clever or concerned they may be, has wrought massive disruptions of resources wherever these individuals were allowed to make these decisions, either through socialism or communism. Why else do you think both economic models were soundly rejected by even their most ardent proponents, and are now only advocated by academics and amateur observers who have no responsibility for the economy or for job creation? > I think you have blythely ignored what Vivian described about how difficult he found it to hire workers in Porvorim for day labor he needed done on his estate in neighboring Soccorro. Imagine then the problems faced by commercial enterprises which need far more laborers than Vivian did. You continue to ignore these real life experiences in favor of the failed hallucinations of Karl Marx. Try reading Milton Friedman who has actually advised several successful economies. > Elisabeth writes: > > Let's examine what is happening in Goa today. An > early morning drive through the major towns of > Vasco and Margao, will reveal hordes of workers > milling about waiting to be picked up by > construction companies on a daily wage basis. > > This model serves no one's purpose other than free > enterprise left to buy labour at the lowest rate > possible. Which, proponents of the free market will > argue is wonderful. But what does it do? It > continually depresses the wage-rate. It offers no > protection, either in health care terms, injury on > the job, compensation for time-off, or any other > sort of insurance for the worker. In addition, in > Goa, these workers are left to provide themselves > with makeshift accommodation near the work site, > which leads to defecation near rivers, pollution, > etc, etc. Soon, we hae a whole shanty town. > Mario responds: > Elisabeth, "The model serves no one's purpose?" How about the purpose of employers who need some work done and workers willing to work at the prevailing wage rates in order to feed their families? > How is it anyone else's business what people who need to work to feed their families are willing to work for? If your ideas are imposed, many of them will not have work, regardless of your admirable intentions of everyone having well paid jobs with full benefits. > Elisabeth writes: > > Suppose, we had labour contracting companies. Yes, > the hideous middle-man. Suppose companies that > required labour were obligated to tender for > contractual labour through these companies. This > would guarantee a minimum sustainable wage-rate for > the labour, make it mandatory on the contracting > company to provide accommodation, sanitation and > other health-care to its workers. Give preference > to Goan labour, and import into Goa to meet demand > requirements. > Mario responds: > "Companies obligated". Who has the cajones to "obligate" me as a private employer. > "Guarantee a minimum sustainable wage-rate?" Guarantee, by whom? Who sets the minimum? How do you know what is sustainable for my business? Are you responsible for the survival of my business? > "Make it mandatory yada, yada, yada." Who is going to make it mandatory for my private enterprise to do anything? This is post-socialist India we're talking about here. > "Give preference to Goan labor." As Vivian explained, he did give preference to Goan labor because he could communicate with them in Konkani. But he could not find any Goan labor willing to do the work he needed done. So he had to hire "foreign" laborers, who were willing to work at a reasonable wage rate, plus he had to shuttle them to and from the work site. That's how the REAL world works, Elisabeth. > What you have described is known as a pipe dream. All it would guarantee is that businesses would be unable to stay in business. If they found a way to survive they would use fewer workers, and many people who would otherwise have jobs would not have any jobs at all. > Elisabeth writes: > > What do you think of this suggestion. It might be > Utopian in concept, but is it workable? Would like > to hear your views on it. > Mario asks: > Not only is it Utopian, it has been tried over and over again, AND BEEN DISCARDED. > Why don't you ask Manmohan Singh why he started the Indian "liberalization" process, the clever euphemism for dumping "Utopianism"? > Unless Fred, who I'm told is a renowned journalist, has run a successful private for-profit business with several employees, how would he know the answer to your question? > In the meantime, my offer to have you interview people who have actually survived in business in Goa for decades and created thousands of jobs stays ignored, as do the experiences that Vivian has related on Goanet. You may actually learn something, but that would hardly be any fun now, would it? > Utopian theorising is far more fun for those not responsible either for hiring workers or for putting food in their jhopdis, and for politicians who want to sell the same old siren song. > >
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