Thursday, February 11, 2010

Minimum Wage in Haiti Relief Efforts?

Context: a discussion of disaster relief efforts in Haiti.
Comment: "The US should spend its relief funds paying for infrastructure projects, as long as we require the Haitian government to pay everyone involved a decent living wage for their work."

Criticism: Why ought we pay a higher wage than people are willing to work for? I'm not just being heartless: if the US is going to spend a fixed amount of aid money in Haiti (a reasonable assumption, I think), why on Earth would we give it to a smaller number of lucky people rather than a larger number of people? It seems unambiguously more equitable to divide aid money up as far as possible, rather than concentrating it in a few lucky workers. And the best way of doing this, in public works projects, would be to hire many people at low salaries rather than a few people at high salaries.

Furthermore, if we're trying to help Haiti as a whole, shouldn't we be trying to maximize the number of public works projects? Even if it was somehow unfair to the construction workers that we hired at low wages, it seems even less fair to channel aid money to construction workers at the expense of the Haitians who would otherwise be helped by the projects we could build at lower cost.

It's nice to want things. But wishing that everyone in Haiti was living on a decent wage doesn't mean that dividing up a fixed sum of money into higher wages is the morally correct thing to do. Flawed kneejerk reactions strike again!

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