The New York Times has found new heroes for the poor. The champions of the
downtrodden of Central America and the US are the fifteen Democrats who
voted for the Central America Free Trade Agreement, "The CAFTA fifteen", who
the Times applauds in an editorial. Their 'independence and good judgment'
will supposedly benefit the poor in Central America by stimulating economic
growth: "CAFTA is a modest trade pact, hardly likely to lift the six
countries' economies into the 21st century. But it may be enough to lift
them into the 20th century by lowering tariffs." Additionally, "CAFTA will
benefit the most underrepresented constituency in America: consumers,
particularly the lower-income consumers who find that a 50-cent difference
in the price of a T-shirt actually means something." Both of these
arguments are so silly as to barely require refuting; nevertheless, the fact
they appear on the Times editorial page does make them significant.
First, all of the economies in Central America ARE currently in the 21st
century. There is no wormhole south of Mexico to a sleepy, backward past.
As is fairly well known, Costa Rica depends heavily on 'eco-tourism', and
Dell Computers owns a substantial chunk of the country. All of the
countries of Central America already are defined by export agriculture and
low-wage manufacturing. They also count on remittances sent by migrants
working in the US, which probably strengthened the US when negotiating the
treaty (because any threat to the flow of those remittances would be a
disaster in Central America). The notion that we in the colossus of the
North can pull those backward lands into the 21st century smacks of the most
rank forms of, well, 19th century racism. During the last hundred years,
Central America lived through an all-too-real 20th century, including 20th
century forms of state violence and torture, ecological and cultural
degradation, political dictatorship, and the very 20th century process of
kicking most peasants off their land to make way for agro-export industries.
CAFTA is an attempt to lock them into a similar 21st century, making it
more difficult for them to pass laws protecting their industries, or to
confront malignant multinationals, or to work together to produce
alternative production or financial networks.
What of those underrepresented, impoverished consumers in the US? First of
all, it is not clear that if a manufacturer saves fifty cents on the
production of a t-shirt, the savings will be passed on to consumers. Most
consumers don't have the time to compare prices at Wal-Mart, Old Navy, etc.
In any case, their goods are not exactly the same, complicating price
comparisons. In fact, even the prices of identical pieces of clothing vary
wildly, by 60% or more, depending on the time in the calendar year they are
being purchased, whether they are being sold at Marshalls or a department
store, or whether a clerk remembered to put up one of those 'take an extra
25% off lowest price' signs. The notion that a marginal savings in labor
costs will show up with crystal clarity in the price consumers pay is
laughable.
More importantly, by what calculation can a saving of fifty cents make much
of a difference in anyone's life in the US? Fifty cents is less than the
price of a pint of milk. Our poor consumer would have to purchase two
hundred t-shirts to save a mere one hundred dollars, which still will not go
very far in terms of meeting the housing and health costs that increasingly
dominate the budgets of most low-income Americans. By contrast, a single
worker losing a well paying job, and moving either to un-, semi- or minimum
wage employment has immediate and devastating repercussions. He or she may
well lose the ability to cover the health or housing costs for the family,
and stress within the family is likely to soar. The loss of five or ten
thousand dollars in income will rebound on local retailers they typically
shop at, causing further shrinkage.
Far from being 'the most underrepresented constituency in America',
'consumers' (who apparently live in a parallel universe separate from
'workers') have been the justification for most economic policies of the
last twenty five years, most notably the spread of Wal-Mart and shopping
malls, and the neoliberal policies epitomized by NAFTA, the WTO, and now
CAFTA. That investors, rather than consumers, are in fact the major
beneficiaries does not prevent these arguments about consumers from being
hauled out time after time.
If the CAFTA fifteen believed that voting for CAFTA would help Central
Americans or poor US citizens, they were sadly mistaken. We cannot afford
such errors in judgment, and should reward them with vigorous primary
challenges next year.
Steven Sherman is a sociologist who lives in Chapel Hill North Carolina. He can be reached at threehegemons@hotmail.com.
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