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Ismael Hossein-Zadeh: Race to the Bottom

Of course, destructive effects of international capital's blackmailing policy (of plant relocation or capital flight) reach beyond the curtailment or elimination of jobs and wages--vital as these are to the working class. This pernicious policy has become a weapon in the hands of the footloose and fancy-free multinational capital when it opposes any humane social program, or essential social needs: science, technology, education, health care, use of natural and/or environmental resources, and so on. Attempts to place environmental standards on firms are met with the threat of moving production elsewhere. Higher taxes to improve the schools? Again, the same threat. Better health and safety standards? The same response, or blackmailing strategy.

What can the working people and other grassroots do to protect their jobs, their sources of livelihood, their communities and their environment? Is there a defense against these threats? Are there alternatives to the global corporate agenda? What can communities do to undermine the strategies of multinational corporations that block progressive social and economic reforms?

A logical, first step deterrent to multinational corporations' blackmailing strategies, and their actual export of jobs, would be to remove the lures that induce plant relocation, or capital/manufacturing flight. Making labor costs of production comparable on an international level would be crucial for this purpose. This would entail taking the necessary steps toward the establishment of wage parity within the same company and the same trade, subject to (a) the cost of living, and (b) productivity in each country. It would also entail abandoning the current business unionist policies of the labor bureaucracy in major industrialized countries and, instead, organizing international trade unions.



~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
by melo (melometa4(at)gmail.com) on Thu Sep 9th, 2010 at 10:00:15 AM EST
[ Parent ]
How about "free movement of capital" is not "free trade"?

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Thu Sep 9th, 2010 at 10:46:19 AM EST
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