Sweatshop Wages and Third-World Workers: Are the Wages Worth the Sweat?

Students: Hear Benjamin Powell live at the Challenges and Future of Liberty Seminar this summer - http://lrnlbty.co/zvFZfS

Prof. Ben Powell discusses the economics of sweatshops. He begins with a few photos and personal travel stories to demonstrate typical working conditions in third world countries. He then discusses the economic forces that determine working conditions and wages. Looking at empirical data, he finds that sweatshop workers earn higher wages than non-sweatshop workers in their respective third world country. He concludes with recommendations to activists who want to actually help sweatshop workers.

Credits: This lecture was delivered in 2009 at the Metropolitan State College of Denver School of Business, as part of the Exploring Economic Freedom Lecture Series, directed by Prof. Alexandre Padilla. This video was produced and directed by Scott Houck, and edited by Adrienne Christy. Video production provided by the Educational Technology Center at Metropolitan State College of Denver. Video used by LearnLiberty.org with permission.

Watch more videos: http://lrnlbty.co/y5tTcY

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[crazypants88]

@Longlivepalestine That's a fair point. I would imagine after a time of building up wealth, competing business might enter the market and offer better working conditions and maybe better wages, thereby forcing Apple to increase their working conditions and/or wages to keep their employees from opting for the company with better working conditions.

But mandating that businesses must increase expendetures by increasing working conditions is most likely going to cost people their jobs.

[mpkpdx]

"Are some corporate CEO’s, doctors, lawyers, politicians and scientists psychopaths? The answer could be “yes” if you use a definition which labels individuals who are often intelligent and highly charismatic, but display a chronic inability to feel guilt, remorse or anxiety about any of their actions. Tack on the use of violence and intimidation to control others and satisfy selfish needs and the label expands."

[Longlivepalestine]

While I agree with the vast majority of what he says, he still fudges a fundamental point (see 12:35). "The companies may make a profit...they are profit-maximizers"

Let's look at Apple. Extremely profitable. Most liquid company, tons of cash. So much that they don't know what to do with it.

And yet they still use sweat shop labor for their iPhones. If they give up a fraction of their profits they could fix working conditions and still remain #1 on the market even without raising prices.

[jmitterii2]

@leeknivek Look at Egypt, they're workers haven't had an increase in min wages since 80's. The pay remains stagnant. Boom civil war, they spend majority of their money just for food. Its the very exploitation that causes unemployment and underemployment both are not a sustainable approach to any productive society. They're I've enlightened you.

[jmitterii2]

@leeknivek Obviously you are an animal not a human. I hope we don't evolve to an ant robot you seem to be. And the min wage has worked otherwise, we'd already be in the midst of a civil war. I discovered these vids are all libertarian blowhards.Problem with libs, you all are the same has far left communists. You live in a fantasy world that all of one way will work. As for your logic, could be used for anything, you assuming the parties have nothing better to do but sweatshop.