Many people dislike companies who move their factories and plants to third-world companies in order to exploit cheap labor. Many claim that this is exploitation. And it is. But is it solely the fault of evil capitalist companies? Is big business to blame?
While businesses would ideally pay everyone a living wage, everyone knows that businesses stay competitive while cutting costs everywhere. I’m not trying to say that this makes exploitation right; I’m just expressing that all companies within any form of government are going to cut costs wherever possible. No system will change that. That said, socially aware companies might choose to pay higher wages to third-world labor and advertise their product as socially responsible. Of course, that would also be a form of exploitation. Most of us can agree that companies should pay people more fair wages, but what would that lead to in the end?
Companies are exploiting cheap labor in third-world countries. But what would happen if they were forced to pay workers a living-wage? If that were the case, what incentive would companies have to move their plants to other countries, where high shipping prices, and dealing with foreign governments may drive their costs up? If companies have to pay higher prices on labor, it may well be just as economically wise for them to stay in America. Many citizens like the idea of American-made products, and companies could exploit this advantage. If companies stayed in America for labor, where would foreign workers be? Certainly, the jobs they have don’t pay enough, but the fact remains that they are lining up for such jobs and every position in factories is filled. The fact that such little pay keeps people lining up for jobs says nothing about American factories and everything about governments of countries that allow such exploitation. If foreign companies and governments could provide jobs with living wages for people, they would not be dependent on exploitative American companies.
In summation, the root of the problem lies in foreign countries. While American businesses are being exploitative and socially irresponsible, the solution to the problem lies in governments taking a stand against such companies. The problem runs two ways; and it isn’t fair to cry foul only on companies, who are doing what companies are known to do, cut costs. Governments are in place to protect their citizens. In this case, they aren’t doing their jobs. It’s time to cry foul on them.
Wednesday, March 18, 2009
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Jess, I agree with you in that it is not necessarily the exploitative American companies’ fault for turning to third-world countries for cheap labor. If they have the option of saving money by shipping their products abroad for assembly, then there is no incentive for them not to do so, especially when, if anything, it is helping the third-world workers. Although they are not being paid, by our standards, sufficiently, they are still being paid more than their alternative. This, by no means, makes its right, though. And the alternative of American companies paying their foreign workers adequately is really not an option, because by doing so they would end up losing money, and thus the incentive of sending their products to third-world countries for assembly in the first place would be eliminated. I do not have a solution to this problem, yet I would not so hastily overlook the possibly of another system being the solution.
ReplyDeleteI agree that it is completely wrong for a country’s government to let it exploit the people in order to get cheap labor. However, sometimes the country’s government does not have a choice. The main reason that compnies are attracted to these countries is that they either have lax environmental laws or have cheap labor. The companies would not really go there unless they saw it profitable with the lower wages having to be paid or low amount spent of environmental regulation. The country’s government wants companies to come over because it raises tax money for the country, build their infrastructure, and provides employment. If the country tries to regulate or say something the company will threaten to leave, which in turn would hurt the country. The government really has no choice but to keep the regulations to a minimum in order to keep the company there, which really hurts the worker since they have nowhere else to go work.
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