3rd World Economics

Discussion in 'Ethics, Morality, & Justice' started by Riomacleod, Jul 23, 2002.

  1. Riomacleod Registered Senior Member

    It has occured to me (not recently) that the reason most of the undevloped parts of the world really truly hate Europe and the US and maybe Australia is that we are basically using them as the modern peasantry. That is, we slave them away to produce for our own benefit, making consumer goods at pennies an hour, enough to barely keep a family alive, if you work 16 hours a day. While I don't know the exact numbers, suffice to say it's pretty obvious that most people in the 3rd world are not getting a fair pay for the work they do. There are examples of countries using this to springboard real economic growth, Taiwan and Hong Kong come to mind.

    Especially now, with the way all companies seem to be going down for the count, many having a hard time making their earnings forcasts, and the economy of the world generally going into the shitter, maybe it is time for a radical change in the concept of the companies. Why not pay the people who work in foreign factories more money? I mean, significantly more money, bringing them somewhere in line with what we would pay here. I know this doesn't exactly mesh with supply/demand labor, but it does allow the company, with a small initial investment, to benefit several ways:

    -Well paid workers are more loyal, will work harder, and faster, and will care about the product being made.
    -Workers who are not spending all of their money on the basic needs of their families will be able to buy luxury items. Perhaps even items that the company makes.
    -Workers from other well paid companies can afford to buy your products too, which introduces a whole new set of consumers, which will create jobs all the way up the supply chain, and ultimatly lower prices, increase revenue, and speed better technology to keep up with the pace of production.

    Of course, the initial investment, probably on the order of 100 million dollars/company would raise prices here a bit, but then ultimately lower prices and-i think-create another non-bubble bull market where the inherent value of stock will actually increase.

    For all of you population control people out there, there will also be a benifit there. When people begin to make more money (and I forget the graph/theory name) there is a line at which they begin to simply replace themselves (that is 2-3 kids instead of 14), in order to actually live and afford a very nice life. This will slow population growth in the 3rd world and keep it on pace with the rest of the planet.

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