The Paradox of Sweatshops: Exploitation or Economic Savior?

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The cheap labor is an important factor in the investment attractiveness of the country, Third World counties such as Indonesia and Bangladesh offers United States cheap production of goods , however most of the time they are made in sweatshops, under terrible working conditions and low wages that barely supports their needs . Many people are against sweatshops , they believe that its against human rights and labor laws. Although sweatshops have negative impact on workers health , I think that sweatshops are beneficial to poor nations because it provides jobs and increase their countries economy. John Miller, professor of economics wrote an article “Why Economists Are Wrong About Sweatshops and the Antisweatshop Movement” in which he argues …show more content…

He gives an example of U.S corporation that uses cheap labor such as Wal-Mart and Nike, who violate Chinese labor laws, people work seventy hours a week and are getting paid very little, also their identity papers are being confiscated, they are forced to pay fines and suffer from physical abuse. Miller also mentions the Triangle Shirtwaist fire of 1911 where 146 women were killed because they couldn’t escape due to blocked doors and windows. After that Fair Labor Standards Act under the Roosevelt established the minimum wage that limited child labor, payed overtime and provide safer conditions. Some people work in sweatshop factories against their will , Miller gives examples of forced labor where people were locked and surrounded to produce brand name clothing . He mentions brand Reebok as they believe to be “promoter of human rights in the Third World” however , based of the former worked Yati ,she was forced to work sixty-three hours a week and only earn 80 dollars a month , and it exceeds the minimum wage of Indonesia . Generally, the pair of their shoes cost 60$ and more however , the real price is around …show more content…

He begins his argument with a flashback of Third Worlds poverty symbol the “Smokey Mountain”, garbage dump where people try to make a living from collecting recyclable items . Krugman believes that comparing to that situation there been more improvements in wages and conditions, it also allowed trade between rich and poor countries that boost up their economies. He states that in mid 1970, to become the worlds manufactured market, cheap labor was not enough to attract other countries to invest, however the decrease of tariff barriers , better telecommunication and reduced air transport benefit the producing of manufactured goods. Krugman says “ low wages allowed developing countries to break into worlds markets.” He doesn’t deny that sweatshops have terrible working conditions for little pay , however he believes that “bad job is better than no job” and they are better than alternatives. The growth of manufacturing creates jobs and some factories offer higher wages that can almost compare to McDonalds in America. He also lists the benefits of export to economic growth, for instance, Indonesia increased its daily calorie intake from less than 2,100 to more than 2,800, and children starve much less. Krugman believes that poverty is still awful but significantly better and the improvements were made because of entrepreneurs and multinationals who provide

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