The random political thoughts thread (Part Deux)

[Alex]

That said, I've of mixed mind about minimum wage in the Pacific Islands.

First, if ever there is a compelling argument for fedreal intervention on wages it is in insular environments dominated by a single industry with few individual employers where there is minimal opportunity for competition to drive up wages.

That said, as Hawaii has learned with sugar and pineapples, it is very easy for such industries to bleed away to other Pacific Island nations without wage protections. A good argument could be made that the only reason SunKist and the other tuna processors are still in America Samoa with its relatively high wage protections (compared to other Pacific Island nations) is because America Samoa has special access to American markets (which is why sugar became a staple crop in Hawaii, once that wasn't a sufficient economic benefit it left Hawaii almost as fast as it entered).

I don't know what they right answer is, since I haven't looked into the specifics enough but I do suspect that $7.15 isn't the right answer.