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by NickC25 1248 days ago
>BS? Based on what experience of yours?

In addition to having lived (for a short time) in Kenya, worked for a company based out of Nairobi for nearly 5 years, and worked with Kenyans that whole time (in other words, I've seen this stuff firsthand in Kenya, which is the whole point of the article, and my comment)...I have also lived in, worked in, and studied in other developing countries, and seen firsthand what happens when high-paying companies swoop in and change the economic landscape.

You know what actually happens? Positive economic change. Isn't the whole point of HN (and YCombinator) to disrupt the status quo, and promote growth? Destabilizing a corrupted, top heavy, status quo where more people now have a chance to grow in life rather than live in abject poverty is a good thing. Nobody cried for the Taxi companies when Uber & Lyft came along, because they destroyed a parasitic, rent-seeking system (Taxi medallions) and the experience for the end-user (both driver and rider) was significantly improved. Same logic applies here.

>The result:

--> He was threatened with harm by bosses of local companies.

Why? He took all their workers.

Yet there's a flipside here that you're completely missing. Those same workers had a significant improvement in their lives, most likely able to accumulate what for them was generational wealth, or enough to give their kids a shot at a real chance in life. Those people had enough to stimulate their local economy much more than anyone beforehand. THAT is what drives positive change in 3rd world or developing countries. Keeping things the way they are economically with no disruption in the 3rd world keeps people poor and unable to grow which leads to bigger problems down the road. Giving them a real chance in life by paying them more gives them and their families a larger ability to make real change in their countries and communities. That should be celebrated.

Put yourself in the worker's shoes - if someone offered to 10x your wages, what would you do with the extra wealth that you now posses?

Having also lived in that part of the world (Mexico, which isn't the quite same as Honduras but analogous enough) , I understand how things sometimes play out in cases like this. The local bosses in your example were probably doing quite well for themselves and keeping a fat cut of the output of their laborers who were paid pennies, and not happy that their game was now being played by a bigger fish than they could fry. So, they acted like a cartel and tried to threaten the new king in town. Did some of the local companies in your example die? Yeah, probably. But nobody is entitled to stay in business....that's sort of the whole point of globalized capitalism - you compete, and you can win or lose, sometimes through your own fault, or sometimes through no fault of your own. Sometimes someone will steal your lunch, and there's not a damn thing you can do about it. That's the reality of it.

1 comments

Your assumption is so short sighted that it's hard to explain how wrong you are.

Let's not think about the noble but the practical: did the man whose life was threatened continue to stay in the country and pay those workers, or did he leave or drop wages? Did people make decisions about where to work based on the idea of long-term compensation? What amount of people left an otherwise stable job to take this high-paying gig that disappeared? What is the net impact on these people _especially_ if the distortion was prolonged and did put other companies out of business?

This is not a 'compassionate' thing to do, it's short-termism that messes with other people's lives. Moreso depending on the function of how large the distortion was and the relative purchasing power of the job. An example of how this works is AWS jobs in other regions -- they pay significantly higher than base rate in many developing countries, but it is both a pedigree and leaves people in a position to get another white collar job that's fine later on. However, the same is not true for something like a gig-work cleaning agency paying 3 times market rate. I have the feeling based on the source that your experience might be closer to the former, which might leave you with a different take than what's happening here.

My assumption may or may not be short sighted, but is a reflection of the fact that I've spent a while in developing countries and understand that people want nothing more than to provide for their families - yet their opportunities to do so are significantly limited, more than anyone in the developed world could understand....and there are both internal and external forces in these countries that want nothing more than to preserve the status quo, which is that they get a huge cut and the workers get jack-fucking-shit to the point where $2-3 USD an hour is a massive windfall.

Maybe the guy in the example did leave the country, maybe he didn't. But either way, those workers were given a massive windfall for a short time, and I'm willing to bet that some of those workers took that money, invested in their families to the point where their children were able to get some form of education, and those children didn't have to lead the same impoverished lives their parents did. They were able to use that money as a stimulus for real growth. That counts.

I've lived in the developing world too. There's a reason why locals who actually want their country to succeed generally hate this. Nobody says "paying well" is a bad thing, but you have to realize that well is relative.

As someone who has been poor, the idea that the massive windfall is better is so frustrating. It's not. At least where I lived, people could not explain to you how a bank worked. People often did not save money, and if someone found out you had money, you were immediately asked for 'loans'. Beyond that you have to think about _lifetime earnings_. If you hire all of the lumberjacks for your slick handmade-in-africa table business, what happens to the SYSTEM of these people when other businesses go out of business and liquidate their assets then you leave? It's not as simple as some new business popping up and employing people.

Ah yes, the timeless principle of I have not, therefore others must have not. Is that the basic crux of the argument you are making? Or did I misunderstand?

If I may point out, the argument (upholding the system) appears to be structured around justifying why others must have not by saying that all non-high-paying lumberjack-employing businesses will go out of business, and then this high-paying business will leave. Is there any reason why this high-paying business would leave? It sounds from your statement that this is guaranteed, for whatever reason. And if it does leave (because obviously no business is guaranteed for all time) is there reason to believe another external business would not step in to fulfill that demand for handmade-in-africa table business? Or that the newly unemployed lumberjacks (but flush with cash relative to local conditions from their high-paying salaries) will sit around and twiddle their thumbs for all time instead of starting their own lumberjack-related business?