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1 - Introduction

Published online by Cambridge University Press:  05 June 2014

Benjamin Powell
Affiliation:
The Free Market Institute, Texas Tech University
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Summary

Abigail Martinez earned only 55 cents per hour stitching clothing in an El Salvadoran garment factory. She worked as long as eighteen hours a day in an unventilated room; the company provided undrinkable water. If she upset her bosses they would deny her bathroom breaks or demand that she do cleaning work outside under the hot sun. Abigail’s job sounds horrible. However, many economists defend the existence of sweatshop jobs such as hers.

“In Praise of Cheap Labor: Bad Jobs at Bad Wages Are Better Than No Jobs at All.” Only a right-wing free-market apologist for global capitalism could ever write an article with such an appalling title, right? Wrong. Those are the words of a darling of the left, New York Times columnist and Nobel Prize winning economist Paul Krugman. Krugman argues that critics have not found a viable alternative to these Third World sweatshops and that the sweatshops are superior to the rural poverty the citizens of these countries would otherwise endure.

Krugman is not alone. After Haiti’s devastating earthquake, Paul Collier, author of The Bottom Billion, prepared a report for the United Nations outlining a reconstruction plan for the country. The development of a Haitian garment industry was central in his plan. He argued that Haiti had good access to key markets and that “due to its poverty and relatively unregulated labour market, Haiti has labour costs that are fully competitive with China.” Collier essentially outlined a sweatshop model of economic development for Haiti.

Type
Chapter
Information
Out of Poverty
Sweatshops in the Global Economy
, pp. 1 - 7
Publisher: Cambridge University Press
Print publication year: 2014

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References

Kaufman, Leslie and Gonzalez, David in a New York Times article on April 24, 2001, entitled “Labor Standards Clash with Global Reality.”
Krugman, Paul, “In Praise of Cheap Labor: Bad Jobs at Bad Wages Are Better Than No Jobs at All,” Slate Magazine, March 1997
“Haiti: From Natural Catastrophe to Economic Security,” A Report for the Secretary-General of the United Nations, January 2009
Kristof, Nicholas, “Inviting All Democrats,” New York Times, January 14, 2004
Krugman, Paul, “Reckonings; Hearts and Heads,” New York Times, April 22, 2001
Kristof, Nicholas, “My Sweatshop Column,” New York Times, January 14, 2009. Retrieved from Google Scholar

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  • Introduction
  • Benjamin Powell
  • Book: Out of Poverty
  • Online publication: 05 June 2014
  • Chapter DOI: https://doi.org/10.1017/CBO9781139342704.002
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  • Introduction
  • Benjamin Powell
  • Book: Out of Poverty
  • Online publication: 05 June 2014
  • Chapter DOI: https://doi.org/10.1017/CBO9781139342704.002
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Introduction
  • Benjamin Powell
  • Book: Out of Poverty
  • Online publication: 05 June 2014
  • Chapter DOI: https://doi.org/10.1017/CBO9781139342704.002
Available formats
×