The Causes Of Labor: The Negative Effects Of Cheap Labor

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The term “Survival of the fittest” is more significant than it has ever been as the imbalance between the world’s ever-growing population and the planets limited resources are operated to advantage the wealthy. Those who fall into the poorer sides of society face greater challenges as businesses take advantage of people that have no other choice but to take a low wage job simply to “survive”. These workers fall into the unfortunate trap of being taken advantage of for the greater advantage of the people they work for, which will therefore lead to negative effects in the economy in the long run, and promote discriminatory acts in becoming a norm in societies.

The economies of businesses that use cheap labor in other countries as a “business strategy” acquire most of the benefits while causing more harm than good to the countries where cheap labor is permitted. Cheap labor may have its advantages in the short term for the country, which is livelihood for their communities, but in the long run, it severely limits the progress of the workforce. As workers acquire small incomes, they do not get the opportunity to acquire things that are likely to improve their livelihood and remove themselves from poverty such as further education for themselves and/or their children (Munger, 2002, p. 227 ). There is a heavy dependence on foreign investment in the cheap labor force and this creates a further imbalance and a growing wage gap. If a large proportion of the population is unable to acquire the means for a decent quality of life this decreases the purchasing power of the population, stagnating the local economic growth, as people are not able to purchase goods and infuse the local market with funds thereby stagnating local businesses. An ec...

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...ns compete for the most profitable ways of performing in their businesses, such exploitation of human beings is usually seen as an advantage rather than a harmful practice also often times ignored, as many focus on the short-term effects or simply turn the blind eye as it does not directly affect them. But as active and advantaged parts of a society we can speak up for people that fall victim to such practices as their voices may hardly be heard. It is our responsibility to take action by being well aware of what corporations we deal with. Raising awareness in our respective communities to educate others of the effects exploitation of human rights through wages can also help put an end to such practices. However, it will take a long time for such practices to completely disappear, and drastic measures of commitment and education are needed to fulfill such a goal.

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