Minimum Wage and Capitalism Run Wild

Serge Melki/Wikimedia Commons

President Obama proposed an increase in the U.S. minimum wage from $7.25 to $9.00 in his State of the Union address. As usual, pundits from left and right criticized this as not enough or too much. Also, economists around the world continue to debate whether a high minimum wage can support or hamper economic growth and development.  Internationally, the following OECD diagram shows minimum wages in a number of countries, for example Australia seems the most generous at $15.75 per hour; the Netherlands offers $11.38, Mexico at the bottom with $0.58 and the U.S. as already stated, with a $7.25 minimum wage.

OECD Statistics

Obviously there are many differences, economically and culturally between these countries, so let's go back to the situation in the U.S. Maybe the situation with minimum wages is not just about the minimum wage but symptomatic for bigger issues in the economy as a whole. Economist Dean Baker explains this proposed increase in an article in the Huffington Post Minimum Wage: Who Decided Workers Should Fall Behind?  He states:

Hawaii Vote: Another Strike in the Battle Against GMOs

Sweet corn/Fairfax County

Food activists in Hawaii won a partial victory last week when the House Committee on Agriculture passed a measure to require labeling on genetically modified food. This seems only a partial win as Common Dreams reports:
"...Originally, House Bill 174 required any food product that is produced or sold in Hawaii to have a label saying it contains or was made using genetically engineered materials, but (last) Thursday's committee hearing amended the requirements so it only applies to produce imported from outside Hawaii...

..... Despite this provision, Hawaii is a ripe battleground for new legislation. According to the anti-GMO organization Hawai'i Seed, "Hawaii is the genetic engineering experimental capital of the world," with thousands of acres of arable farmland being used to test seed crops for agriculture giants, including Monsanto." In other words........

It's Time to Get Rid of The Big Mac Index, and The Big Mac

Hamburgers by uberculture/Flickr

In the same week that I heard about some really unappetizing food at McDonalds, The Economist  came out with its latest analysis of foreign-exchange rates according to its popular Big Mac index. This is how The Economist explains its index:

"Its secret sauce is the theory of purchasing-power parity (PPP), according to which prices and exchange rates should adjust over the long run, so that identical baskets of tradable goods cost the same across countries. Our basket contains only a Big Mac, and relies on the efforts of McDonald’s to produce identical products from the same ingredients everywhere -  underlining added - (or almost everywhere: for India we use the Maharaja Mac, which contains chicken rather than beef) " 

So by and large, the Big Mac Index is based on comparing the price of an identical product (i.e. the Big Mac) around the world, the Index can determine whether a local currency is over - or undervalued against the dollar. The Economist continues:

"... At market exchange rates, the Canadian version of the burger costs $5.39, compared with an average price of $4.37 in America. By our reckoning, then, the Canadian dollar is roughly 24% overvalued relative to its American counterpart...."

Generally, average prices of hamburgers are lower in poor countries due to their lower labor costs, and this would invalidate some of the Index' conclusions, claim critics of the Big Mac Index. But I pose there is another criticism based on the "identical product" assumption.

A few days ago, I read the following alarming article McDonald's McRib Sandwich a Franken Creation of GMOs, ToxicIngredients, Banned Ingredients on the Natural Society website. This doesn't offer pleasant reading, let alone eating:

Over-Prescription and No Common Sense

Pills by Sylvar/Flickr

One thing when watching American television that really bothers me is the barrage of drug ads: not only do they show people suffering from all kinds of ailments- such as depression, lack of sleep, or high cholesterol - who suddenly after taking their magical pills start smiling, are happy hanging out with a group of fellow sufferers, wake up rested, and run energetically through a forest -, but they are also indicative of a health care system that is fundamentally unhealthy. The U.S. is among only two countries (i.e. the other is tiny New Zealand) that allow direct to consumer drug ads. 

As the World Health Organization stated:

" Direct-to-consumer advertising of drugs has been legal in the USA since 1985, but only really took off in 1997 when the Food and Drug Administration (FDA) eased up on a rule obliging companies to offer a detailed list of side-effects in their infomercials (long format television commercials). Since then the industry has poured money into this form of promotion, spending just under US$5 billion in 2008 alone." 


Does this increased spending on direct drug advertising mean that American consumers are healthier than others, or just that pharmaceutical companies are making more profits from their brand-name drugs?

Tribute to Emily Squires

Last week I attended a tribute to Emily Squires, who had died last November 21, in New York City. Emily was a successful director, the first woman director of Sesame Street, who had won six Emmy Awards with her team for her work as Director of Sesame Street between 1995 and 2007. She also directed documentaries, including: Visions of Perfect Worlds, a conversation with the Dalai Lama, The Art of Being Human: a Portrait of Frederick Franck, which was shown at the tribute,  Five Masters of Meditation, and films about fracking and Occupy Wall Street.......

GMO Labeling Discussion Revisited

Sweet corn/Fairfax County

Only a few months ago,  Proposition 37 requiring labeling of  GMOs  was defeated in a Californian referendum in no small measure due to a concerted effort by corporations spending over $ 40 million, but the issue is back on the table in Washington State. And now corporations seem to be changing their tune: "...major food companies and Wal-Mart are discussing lobbying for a national labeling program...." as reported in the New York Times on January 31.

"..Instead of quelling the demand for labeling, the defeat of the California measure has spawned a ballot initiative in Washington State and legislative proposals in Connecticut, Vermont, New Mexico and Missouri, and a swelling consumer boycott of some organic or “natural” brands owned by major food companies."  Another interesting difference between the Californian referendum and the Washington ballot initiative is:

100th Birthday of New York's Grand Central Station

Grand Central Terminal (by Diliff,/CreativeCommons)

Today the celebration started of Grand Central Terminal's 100th birthday  in New York City. Grand Central, as it's commonly known, is one of the largest railway stations in the world, serving as the leading train commuter hub in the U.S. and being the world's number six most visited tourist attraction with over 21 million visitors annually. Besides serving as a major transportation center in the middle of Manhattan, it is also a magnificent building, which is a pleasure to visit. As a New York resident living on walking distance from Grand Central, I often use it for many different purposes, not just catching the subway which connects the East side of Manhattan with its' West side, but also to buy international newspapers in one of Grand Central's extensive newspaper stores or to enjoy oysters (or Dutch herring when in season) at the famous Oysterbar, or to buy christmas gifts at its December Holiday Fair. 

Although the predecessor-building of Grand Central originated in 1871, the current building was built in 1913 by the architectural firms Reed and Stern, and Warren and Wetmore, creating what would become...............