alt Hacker NewsI remember Planet Money doing a pretty good story on this where they spoke with sweatshop workers in Bangladesh.
Relative to the labor wage of employees in the US, they were earning absolute pennies.
Relative to the places they came from? They doubled their income and were functionally free from concerns about things like famine and infected drinkable water.
Exploitation of labor is a complicated topic (and really, the meta-fight is, as is so often the case, not between nations; it's between labor and capital. Offshoring is just another form of scabbing, but the world is not yet small enough that one should expect a fresh-off-the-farm factory worker who just had their prospects opened up to join a global strike because people in the US want to make $15/hr).
(Related: As is so often the case, if you want things better for your folks back home, lift everyone out of poverty and make everyone safe. People are less likley to take "slave-wage" jobs if the alternative is not subsistence and high risk of unpredictable outcome due to localized supply disruption, disease outbreak, or war).
Bangladesh is a fascinating case story. They had a few decades of solid growth largely due to the textile industries, yes.
They went from dirt poor to merely poor. That's to be celebrated, and I hope we see Bangladeshis continue making themselves richer through their own hard work.
> (Related: As is so often the case, if you want things better for your folks back home, lift everyone out of poverty and make everyone safe. People are less likley to take "slave-wage" jobs if the alternative is not subsistence and high risk of unpredictable outcome due to localized supply disruption, disease outbreak, or war).
I assume by 'folks back home' you are referring to people who live in rich countries? Having people in Bangladesh and Vietnam become richer is definitely good from a moral point of view, but it has only second order effects on the 'folks back home'. To a first approximation, it doesn't matter economically how well off or poor foreigners are. As a second order effect, if an economy is booming next door (ie they are getting richer), some positive effects often spill over, and global security probably goes up, too.
> Exploitation of labor is a complicated topic (and really, the meta-fight is, as is so often the case, not between nations; it's between labor and capital. Offshoring is just another form of scabbing, but the world is not yet small enough that one should expect a fresh-off-the-farm factory worker who just had their prospects opened up to join a global strike because people in the US want to make $15/hr).
I'm not sure what you mean by exploitation? In any case, labour and capital are working together, you need both to produce anything in a modern economy. In fact, you need labour, capital and land working together.
If you want to get worked up about anything, it's not labour vs capital. But it's labour+capital vs land. In recent decades in the US the share of GDP going to labour has dipped a bit, capital's share has stayed stable, and the share of land went up.
Many economic analyses mix up land into capital. But that's misleading at best. We can produce more capital to compete with the old capital. We can't make more Land. (Well, not until we are building space habitats.)
(By Land with a capital L, I'm including the oceans. The Netherlands (or even more Singapore) reclaiming big swaths of land just means they are converting ocean floor Land to dry Land.)
See https://fred.stlouisfed.org/series/LABSHPUSA156NRUG for the US labour share. I'm not sure if Fred has a graph that drills into the non-labour share and tells you what goes to capital and what goes to Land. But see eg https://www.brookings.edu/wp-content/uploads/2016/07/2015a_r...