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SWEATSHOP – I can´t take any more

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Re: SWEATSHOP – I can´t take any more

#32
post #12

So, I remember seeing this on Reddit a few weeks back. Some commenters mentioned that sweatshops are a necessary evil for developing nations. It's better to have a shitty job than to have the alternative of being jobless and resorting to theft/prostitution for sustenance. How true is such an argument?

Sadly, it is true. If you increase min wage in one country, the business will move to another. You would need to increase it everywhere. Assuming that's possible you would still need to deal with corruption.

What makes things worse (at least short term) it's automation. In 10 years robots will do this kind of job.

Historically, all nations developed with this brutal process. Many without minimum wage.

Re: SWEATSHOP – I can´t take any more

#33
post #25

In terms of a large profit making company, the company has to make ever increasing profits for the shareholders or else it becomes pretty much illegal. Thus, currently these conditions are necessary, there is nothing to stop them, because to stop them means that a corporation is not operating properly. It is necessary because to not allow it means that a corporation is behaving badly. Like it or not, and in this exam…

I guess you're getting downvoted for repeating the myth that corporations must maximise profit.

Re: SWEATSHOP – I can´t take any more

#34
post #12

So, I remember seeing this on Reddit a few weeks back. Some commenters mentioned that sweatshops are a necessary evil for developing nations. It's better to have a shitty job than to have the alternative of being jobless and resorting to theft/prostitution for sustenance. How true is such an argument?

One of my all time favorite pop economics essays is by Paul Krugman, addressing this topic:

http://www.slate.com/articles/business/the_dismal_science/19...

His argument is summed up thus:

"And as long as you have no realistic alternative to industrialization based on low wages, to oppose it means that you are willing to deny desperately poor people the best chance they have of progress for the sake of what amounts to an aesthetic standard--that is, the fact that you don't like the idea of workers being paid a pittance to supply rich Westerners with fashion items."

Re: SWEATSHOP – I can´t take any more

#35
post #16

I wonder, how can we in the first world change our behaviour here to stop things like that? Does the very way we live cause this or are the causes local?

It's a combination, but we certainly play a part. If there's no pressure from developed countries, then rising wages and conditions of work in one manufacturing nation will ultimately just mean making themselves less competitive. In some ways there's a lot of potential for action on our part, because the effect on final price is so minimal through even drastic increases in worker pay. To take it to absurd levels, you could increase worker pay tenfold, and only add $1 to the cost of $14 shirt [1]. So we only have to care enough to be willing to pay a tiny amount more (12c more to double wages, or spent otherwise to drastically improve working conditions), for it to be worthwhile for companies to market themselves as being decent employers.

There are various things we could do. As individuals, you could buy brands which have signed up to some sort of agreement for better treatment of workers - in the UK we have Fair Trade (the main focus is agriculture, but they do seem to do clothes as well), and also the more mainstream Ethical Trading Initiative, which some major high street shops have signed up for. As governments, I personally see no reason why we shouldn't have at least some basic worker rights built into international trade deals. It's difficult or impossible to see what things are like on the ground, but at least we could make the existence of national laws mandatory.

[1] http://www.macleans.ca/economy/business/what-does-that-14-sh...

Re: SWEATSHOP – I can´t take any more

#36
post #11

Earlier quoted context omitted.

What was the Danish version called? I don't recall hearing about it

Blod, Sved og T-shirts http://www.dr.dk/Undervisning/Gymnasium/Samfund/Oekonomi/Glo... I think it is besides the point that they were pampered upper middle class kids. The things they saw were horrible. In the danish edition, they went to India where there was a whole town build up around a mountain of trash. The folks there would drink black water from the mountain.

I think a dose of reality is what most middle class kids need. Otherwise many of them grow into arrogant right wing adults with no real clue about how much of the world works.

Re: SWEATSHOP – I can´t take any more

#37
post #28
post #25

In terms of a large profit making company, the company has to make ever increasing profits for the shareholders or else it becomes pretty much illegal. Thus, currently these conditions are necessary, there is nothing to stop them, because to stop them means that a corporation is not operating properly. It is necessary because to not allow it means that a corporation is behaving badly. Like it or not, and in this exam…

> In terms of a large profit making company, the company has to make ever increasing profits for the shareholders or else it becomes pretty much illegal. Thus, currently these conditions are necessary, there is nothing to stop them, because to stop them means that a corporation is not operating properly. This is just bullshit, for lack of a better word. First of all, increasing profits does not force anyone to do hor…

Thanks for the link, I was wrong on the legal point, but it's not all bullshit.

From that thread: "They don't get punished for not maximizing shareholder value. But it is true that maximizing value needs to be their goal and they may not be negligent in the pursuit of that goal."

It also confirms that a corporation must in general make an effort to maximise profits, if that is what the shareholders want. So, we should make it clear to the corporations and the shareholders that reducing their profits by increasing the quality of life of their suppliers is an acceptable loss and may actually increase value and therefore something that the directors should aim for. That shareholders have to be confident to tell their directors that they will not be negligent if they try to improve sweatshop conditions in their suppliers.

Re: SWEATSHOP – I can´t take any more

#38
post #18
post #12

So, I remember seeing this on Reddit a few weeks back. Some commenters mentioned that sweatshops are a necessary evil for developing nations. It's better to have a shitty job than to have the alternative of being jobless and resorting to theft/prostitution for sustenance. How true is such an argument?

It is definitely not a neccesary evil. Minimum wage in those countries could be increased (or one created and enforced) so that there is a dramatic improvement on the workers lives without much of an impact on the end consumer. Consider how cheap a t-shirt is in the U.S. However politicians are scared since they think it will drive business out of their country. Or they are corrupt.

I wonder if minimum wage can be increased if the economy isn't pretty solid or at least growing fast.

Re: SWEATSHOP – I can´t take any more

#39
post #16

I wonder, how can we in the first world change our behaviour here to stop things like that? Does the very way we live cause this or are the causes local?

It's not that they're exploited. Cambodia's economy is just really, really inefficient. Food prices in Cambodia are really high (ep 4), higher even than in Berlin [0] by 21%, not to mention Eastern Europe (2+ times Warsaw's prices, 4x if you shop around). The sad thing is, the wages in sweatshops won't go up much. Sooner or later automation will advance to the point where even $3/day for sewing garments will be too high and they will all be fired.

[0] http://www.numbeo.com/cost-of-living/compare_cities.jsp?coun...

Re: SWEATSHOP – I can´t take any more

#40
post #18
post #12

So, I remember seeing this on Reddit a few weeks back. Some commenters mentioned that sweatshops are a necessary evil for developing nations. It's better to have a shitty job than to have the alternative of being jobless and resorting to theft/prostitution for sustenance. How true is such an argument?

It is definitely not a neccesary evil. Minimum wage in those countries could be increased (or one created and enforced) so that there is a dramatic improvement on the workers lives without much of an impact on the end consumer. Consider how cheap a t-shirt is in the U.S. However politicians are scared since they think it will drive business out of their country. Or they are corrupt.

> Consider how cheap a t-shirt is in the U.S.

you mean how cheap it can be. T-shirts range anywhere from $1 to $100 and probably more, but that money doesn't trickle down to the people making those shirts in the end.

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