Economic Benefits Of Sweatshop Labour. Essay

1041 words - 4 pages

Sweatshops are typically associated with inhumane treatment of the working poor, and people without choice of work and labour conditions. The general consensus of the global community is that sweatshops are unprincipled and unacceptable. An economic analysis of the economics of sweatshops identifies their benefit to the economies of developing nations. Globalization has caused an increase in sweatshop labour, which benefits the economies of developing nations and the standard of living of the sweatshop labourers despite some detrimental effects. Sweatshop labour is at times inhumane and violates the rights of its workers however it also acts as a stepping stone to economic development, and it improves the workers standard of living.Many critics of sweatshop labour argue that sweatshops are inhumane to their workers and that the conditions and treatment of their employees are cruel and in violation of their individual human rights. Kevin Danher of the Hoover Institution claims that, "Sweatshops are not a sign of progress...Look at Mexico, where 15 years of trade 'liberalization' have not succeeded in closing the gap between rich and poor. " He continues to argue that sweatshop labourers are forced to work for a below minimum wage that cannot properly support their families. However many argue that on an economic perspective there are more benefits to sweatshop labour then detriments."Some managers are brutal in the way they house workers in firetraps, expose children to dangerous chemicals, deny bathroom breaks, demand sexual favours, force people to work doubt shifts or dismiss anyone to tries to organize a union. .. But workers would be aghast at the idea of American consumer boycotting certain toy or clothing in protest. "They argue that sweatshops help to increase the standard of living of their workers and that they enable to country's economy to grow and prosper.Sweatshop labour acts as a stepping stone for developing nations to experience economic development. Over time many nations have been able to experience significant economic growth following the implementation of sweatshops within their country. "Hong Kong, Singapore, South Korea and Taiwan... made apparel, toys, shoes...mostly for export. Within a generation their national incomes climbed from about 10 percent to 40 percent of American incomes. " Through the use of sweatshop labour these countries were able to jumpstart their economy into the powerhouses that they are today. Just as the modernized nations of the United States, Britain and Canada experienced the stimulation of their economy after industrial revolution, many developing nations are affected similarly as a result of the development of sweatshops. World Bank Economist David L. Lindauer stated "We know of no case where a nation developed a modern manufacturing sector without first going through a 'sweatshop' phase. " By implementing sweatshops the economies of developing nations have a stepping stone from which they are...

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