Originally Posted by miller-time
So first world companies using sweat shops is what then?
I don't know why companies employ the use of sweatshops over there, but if they could truly afford to pay workers more, a competitor would already be filling that gap.
For instance, imagine if Nike was over there paying workers 10 cents an hour, in crappy workplace conditions. If Nike was truly capable of paying these workers more, you open the door for Reebok to open a competing facility. They increase wages, and all of the labor would flood towards Reebok.
For whatever reason, which I admit I do not know, it is not financially feasible to do that right now. Is there not enough worldwide demand for Nike's products outside of America to warrant higher wages? Are these governments restricting wages in some way, or artificially reducing competition? Or is this just one stage in the natural order of a developing economy? I can't say. But I do know that if the market economy is allowed to function, we will over time see things like sweatshops being eliminated, just like they were in America and Europe. Because as the workers production increases, they will be able to demand higher wages on the open market, and the businesses that don't adapt will lose that labor to their competitors.