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The Collective Farm



Guests:
Aaron Hale-Dorrell, Kristy Ironside, and Samantha Lomb on the collective farm system in the USSR.

There Is No Other Way

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Minimalnaya-zarplata-600x400

Oleg Shein posted the following on his Facebook page:

Today, the State Duma adopted a law raising the minimum wage from 6200 to 7500 rubles. This is definitely a good move. In fact, it’s not so small for workers who earn pennies. In 2011, 2.3 million people earned less than a subsistence wage in the formal sector of the economy alone.

But there’s cause to compare this with other countries. 7500 rubles equals $116 at the current exchange rate. At a standard 40 hour work week totaling a 167 hour working month, this comes to 70 cents an hour. The Russian Federal State Statistics Bureau traditionally considers the ruble undervalued by about 40%, as is easily found on its website. If we assume that the ruble is not undervalued by 40%, but by 70%, then the hourly rate minimum wage would be $2.

Compare this with the minimum wage purchasing power parity of other countries. Honduras $2, Laos $2.10, Iraq $ 2.40, Thailand $2.86, Paraguay $3.57, and Turkey $5.89.

Who would have thought that 25 years ago Soviet citizens compared the incomes in the USSR with Norway and Sweden? And the reason is simple: to receive a decent wage under capitalism, you have to fight for it, form trade unions, go to protests, and go on strike. There is no other way.