Posted by
Andrews on Tuesday, April 22, 2008 6:58:03 PM
I was reading a post on
another blog, and it reminded me of the many foolish things I have heard about international trade. I am not speaking this time of protectionist arguments, or autarchy silliness. This time I am talking about the claims of exploitation of foreign labor.
I think it is time we eliminate this idea that companies paying foreign workers wages that seem "too low" by US standards are exploiting labor. In the case of actual slave labor in China (though I think China officially denies they practice this), exploitation is a viable argument. But it is not exploitation to pay $1 per day if workers are willing to work for it. The fact that many overlook when arguing for exploitation is that wages in the region are usually even lower than the wages the company is paying, so they are raising standards of living, not lowering them. So, by boycotting these employers, consumers are not helping the locals, they are removing an opportunity to better themselves.
Let us just take a very brief look at this. Except in those rare countries where there is slave labor, the people taking these jobs do so voluntarily. In other words, they will work for $1/day because it is the best opportunity they have available. So, to refuse to buy form companies offering this opportunity is condemn these people to either lower paying jobs or no work at all.
And, as for the alternative proposed, paying these workers wages comparable to their counterparts in more developed countries, that too is an idiotic solution. Workers in the developed nations nations are better paid, in general, because they are better educated and better provided with capital equipment. If I must pay workers $6/hour plus benefits, why would I not get the better productivity, not to mention lack of import duties, by employing Americans instead? I also get the added benefit of a more stable government and a lack of foreign legal complications. In other words, by forcing me to pay foreign labor American wages, these champions of foreign labor guarantee there will be no foreign jobs.
So, basically, in order to save these foreign workers from "substandard wages", liberals are willing to condemn them to either unemployment, or even lower wages.
Can anyone tell me how this is better than allowing companies to employ these workers?