Thesis statement
Although for the duration of their existence sweatshops have had their economic benefits felt by the locals in the areas of establishments, their negative influence is far reaching and appalling. The evidence of how workers are mistreated in the workshops and subjected to working in environments whose safety is below standard can be deduced from the numerous accidents and deaths taking place in the workshops
A summary of Paul Krugman’s case for cheap labor
In his article “In Praise of Cheap Labor: Bad jobs at bad wages are better than no jobs at all,” Paul Krugman tries to explain how cheap labor has benefited the developing economies. This article is in response to a hate mail he received from the people he refers to as detractors of globalization. The hate email is from people taking a stand against the appalling working conditions that is brought about by the use of cheap labor in such economies. Paul makes it clear that although he is not in support of such terrible working conditions, the arrangement presents an economic benefit not only to the workers but also the surrounding community (Krugman). He further explains that the people arguing against the working conditions have not thought their position through. In doing so, they would realize that even though the conditions are pathetic, without the jobs and the factories the workers would be much worse (Krugman).
The proponents of the international standards and regulations regarding the working conditions fail to realize that with such policies the multinational corporations will lack the incentive to move their operations to develop economies as cheap labor has been the main reason for the shift. Therefore, without the cheap labor, the companies already established in the developing economies would have no reason to continue with their operations in such areas
In conclusion, he says that even though the working conditions are deplorable, without the benefits that the companies come with such societies would be in worse shape. He urges the critics to think through and compare the conditions with the alternative agrarian poverty. The condition is still pathetic but nonetheless better. However, the employment of sweatshop is mutually beneficial because it is voluntarily chosen by the workers.
A summary of John Miller’s argument about sweatshops
In his article entitled "Why Economists Are Wrong about Sweatshops and the Anti-sweatshop Movement", John Miller recognizes the efforts of the student-led campaigns against the sweatshop that occurred in the late 1990s (Miller). The efforts of the students were not limited to them understanding the working conditions in the sweatshop but also ensuring they changed for the better. The students desperately wanted to act so as to ensure the men and women who made their jeans, t-shirts and sneakers had the dignified livelihood.
As the student activism continued, the mainstream economists reacted by moving to defend the economic benefits that accrued from the low wage that the jobs offered. The actions of the economists culminated in ACIT writing a warning letter to presidents of universities and colleges claiming that the adoption of the proposals would cost a good number of workers in developing countries their jobs.
In 2005, over 64 workers died when Spectrum factory collapsed. In another incident involving Rana Plaza factory near Dhaka 1,129 workers died in what turned out to be the worst disaster in garment ("Battling For A Safer Bangladesh"). The establishments have been known to be forcing their employees to work under pathetic conditions which put their lives in danger (Miller). Most of the multinational corporations locate their offshore operations where labour laws are not strict. Such actions help the firms to cut their labour costs without the fear of economic sanctions. The companies are assured of minimizing costs through cheap labour and poor working conditions. Sweatshops violet even the most basic of the rights of the locals such as labour rights. Other laws violated are the child labour, minimum wage, and health and safety regulations.
Very low wages is one of the main problems of the sweatshops (Miller). Multinational corporations move all over the globe trying to find cheap manufacturers for their products. The process of reducing cost leads the companies to source for labourers whose wage demands are below the living standards. In achieving a cheap product, the labour force is exploited, denied basic civil rights, a living salary and a right to work in a safe environment. Such environment denies the workers their self-respect. Doubling the wages of the sweatshop workers would only increase the cost of the item by about 2%. Studies show that such an increase is one that most consumers are willing to bear as long as the product is not produced from a sweatshop.
The existence of sweatshops results in global economic imbalance. Manufacturers who do not produce under the inhuman conditions incur higher operational costs as compared to the companies that procure cheap labour (Miller). The result of this scenario would be continuous losses for the companies adhering to labour laws such entities end up being thrown out of business
The conditions and the remuneration packages of sweatshops in the developing countries may result in the migration of skilled labour ("Battling For A Safer Bangladesh"). The skilled workforce may feel the pressure to move out of their country in search of a company that will honour their dignity and offer them a chance at a dignified livelihood. Such migrations result into a temporary shortage of the skilled labour in the countries in which the sweatshops exist
Bibliography
"Battling For A Safer Bangladesh". (2014): n. pag. Web. 3 Apr. 2016.
Krugman, Paul. In Praise Of Cheap Labor. 1st ed. 1997. Web. 3 Apr. 2016.
Miller, John. Why Economists Are Wrong About Sweatshops And The Anti-Sweatshop Movement. 1st ed. 2014. Web. 3 Apr. 2016.
