With all due regards to Walt Disney, whose song I, and I would assume many of you grew up singing, “It’s a Small World After All”, is wrong.
In fact it’s a big world, with billions of people competing, in what has become a global marketplace, for their share of the pie.
It’s really not Mr. Disney’s fault.
Time’s have changed.
The song was written in the 1960’s and premiered at the New York World’s Fair in 1964.
Yes I’m from New York City.
I was born in 1958, and was 11 in 1969 when let’s say I started lets say to be aware of world around me, somewhat (although I vaguely remember going to that World’s Fair in New York)
So 1969.
It’s the year of the first moon landing.
The year the miracle Met’s came from being the worst team in baseball to win it all.
Back then it was a small world.
Cable television didn’t exist and of course neither did cell phones, satellite TV, the Internet, and computers were something only mad scientists had.
The Euro didn’t exist, the dollar was god and the NASDAQ which has given rise to Apple, Google. Microsoft, and well you a know a whole tech publicly traded economy , didn’t even exist until 1971.
Yes 1969 was a long time ago.
Yes I’m ancient.
But back then it was a small world dominated by just a few countries that produced most of the good sold around the world.
As we all know today its quite different.
What prompts this post is my trip to Asia which started with a visit to Singapore to attend ICANN and which concluded with a two+ week trek through Thailand.
Thailand is a beautiful country with some fantastic beaches, mountains, wildlife and people.
But a headline in the newspaper here the other day caught my eye and inspired this post.
There were elections here just about 10 days ago where the 1st women Prime Minister in the history of Thailand was elected (image a women being elected to head up a country like Thailand before the US; but I digress).
So the big topic of the day here in Thailand now that elections are over is should the minimum wage be raised to 300 Baht a day.
Baht is the currency of Thailand.
The current conversion rate is that 30 Baht equals $1 US dollar.
So yes the proposal that the new administration want’s to pass here would RAISE the minimum wage of workers to $10 US a day.
A day.
But that is only in the big cities.
Smaller towns would not get this huge increase.
Currently the minimum wage in say Bangkok is 215 Baht a day or $2.15 a DAY US.
Not only is the new government looking to increase the minimum wage for laborers, but it wants to raise the minimum wage on starting salaries of those with Bachelor Degrees (management) from 11,000 Baht per month to 15,000 Baht per month (yes $500 a month US for college graduate management types)
The headlines in “The Nation” newspaper in Thailand blared that the increase in the minimum wage to 300 Baht a day and 15,000 for managers might cause Thailand to lose its competitive advantage in the world increasing its cost by 26% thereby making its goods more expensive on the world market:
“The Centre for International Studies at the University of of the Thai Chamber of Commerce warned yesterday that the policy to increase the minimum wage was likely to undermine exports. Am increase in the minimum wage will mean higher costs, and decreased revenue and efficiency.””
“”Production costs would soar by 31.5% in the services sector and 26.5% for manufactured goods.”
Other government officials worried that such an increase in the minimum wage would draw an influx of laborers from Cambodia Laos and Burma which would apparently jump at the chance to make $10 US a day.
A letter to the editor on the same day also caught my eye:
“”Exploited Workers deserve Higher Wage:
“300 Baht a day is a good start but not enough. Thai workers have been suppressed for too long. Companies that own international franchaises have been ripping off Thai workers for ages.
Consider this.”
“In Thailand prices of food and drinks for example at McDonald’s Starbucks, KFC Dunkin Donuts are comparable to those in the US. But over there workers earn a minimum wage of $7,25 per hour while their Thai counter parts make about $1 an hour.”
“Surely those workers deserve more than 300 Baht a day and those employed by five-star hotels where room rates are comparable to ones in London and New York City”
While I can’t say I visited McDonald’s while I was in Thailand I would say that a five star hotel in Thailand (Four Seasons, etc) is going to cost somewhere around $1K a night plus 10% “service charge” that none of the workers seem to get and a 7% sales tax, which is on par with a lot of US cities, actually world cities.
So I can’t really argue with the commentators logic but I will say he had a lot more balls than I do, writing his piece and signing his name proudly displaying the city in Thailand where he lives, when I proudly waited until I was long out of Asian airspace before posting this story.
So what does it all mean?
Well its clearly too much for one little domainer to figure out.
But when a country is considering raising a minimum wage to a level of $10 US a day and worried about its ability to compete in the world global market, well I think its something for all of us to give thought to.
So while I don’t have an answer, I do have a conclusion:
It’s sure not a small world.
Jake Field says
It’s official: Thailand is the new South Florida.
Kevin says
A variety of eye opening estimates of world povery conditions . . . .
Almost half the world — over three billion people — live on less than $2.50 a day.
At least 80% of humanity lives on less than $10 a day.
According to UNICEF, 22,000 children die each day due to poverty.
Nearly a billion people entered the 21st century unable to read a book or sign their names.
Some 1.1 billion people in developing countries have inadequate access to water, and 2.6 billion lack basic sanitation.
1.6 billion people — a quarter of humanity — live without electricity.
Paul says
1969 Worlds Fair – The 1st one I went to (and perhaps the only one). I was 9. I remember some wonderful things:
1. My uncle picked us up at JFK. He had a phone in his car! It was not quite a phone (rather a radio) and you had to say “over” when you were finished speaking. We were all duly impressed. Not quite where we are today but remember – it was 1969.
2. AT&T had a demo on video phones. You could stand there and “make” a call to the next connected phone (which was at the same kiosk) and you could see and speak to the person. Again, not quite Skype but then again…..it was 1969.
3. McDonalds was still a small fry – I believe it started in 1959.
Kevin says
@Paul
I went to the 1969 Worlds Fair also.
I remember that ATT Video Phone exhibit too! That was so cool!!
It’s amazing how much incredible new technology was just ahead for the world.
Fond memories of the 60’s and 70’s . . . .
LS Morgan says
Brilliant post.
All economics is zero sum. Starting in the early 80’s, certain forward-thinking Americans started to finally realize that in order for the world to enjoy an ‘increasing share of the pie’, it meant that our own average standard of living inevitably had to decrease.
Even nastier for us here in the US is that we’re nowhere near the capital-forming country we once were, so we get by via capital-transfer, which leaves a lot of people out in the cold… Trickle down economics” is a perfectly sound theory when we’re forming surplus capital fast enough for our lower and middle classes to enjoy a high standard of living, but it totally doesn’t work when our economy relies on capital transfer, since the most natural orientation for capital is to drift upward, not downward.
Asia doesn’t suffer from this problem. They are forming capital at an ungodly clip- their issue is stratification and transfer (or communism).
BullS says
Do not ever post about the Kings….you will be a sorry-Ass.
Now you know there is life outside of USA!!
Jodi Chamberlain says
The one thing I admire about you Michael is the way you write. Of all the things to share with us about your trip, you stand outside that box and look upon the truth/moment of their country today..
Perhaps you can go get Bandit and go somewhere else, I don’t know say..Russia?!? I’ve always wondered what things were like over there:)
Excellent Read MB~
Welcome back home.
Jodi Chamberlain
Gazzip says
“So what does it all mean?”
It means the big international corporations, bankers, traders and corrupt elite leaders were making all the money and keeping everyone else stuck in poverty.
The Thai’s got fed up with it, as can be seen by the bloody riots on the streets of Bangkok in April 2010
Same shit is going on all over the world, the elites are taking the p***
They think that Capitalism is alot more important than Democracy.
People want change and they will make it happen one way or another…. coming to a city near you 😉