March 16, 2007

Some more free market discussion.

I mentioned oh, last month that I might be able to publish this discussion I've been having with Mr. Bill Powell (his blog here) just as soon as I received permission from him. Well, I finally got through and he gave me to go ahead. I think I'll post one letter at a time for simplicity's sake.

I already linked his post and my initial response. Here is his counter-response
Dear Mr. Stine,

Thanks for your note! Sorry it's taken me a bit to respond.

> It would seem that because people traveled so far just to get sweatshop
> jobs that they are better than the alternative, no?

Unfortunately, that only speaks poorly for the alternative. In fact,
your links were great, they shed a little light there. For instance,
the NYT article pointed out:

Government policy is playing a role in creating the coastal labor
shortages. Trying to close the yawning income gap between the urban
rich and the rural poor in China, the national government last year
eliminated the agricultural tax, and it also stepped up efforts to
develop local economies in poor, inland and western provinces, which
have mostly been left behind.

Perhaps some people, at least, were leaving their homes because of
intolerable taxation. There are precedents.

> Wage slavery can only exist where someone holds a monopoly on
> employment. With hundreds of companies owning factories in China,
> this is not the case.

Maybe we're using the term differently; the point is, if people will
work under such intolerable conditions, there must be some severe
external pressure at work, severe enough to be at least analogous to
that which keeps people enslaved. I don't see why you need a monopoly;
all you need are the majority of factories having the same deplorable
conditions. That's how it worked when Dickens wrote *Hard Times*, that's how
it works today.

Incidentally, the second article's report of a rising GNP and per
capita income in China proves very little regarding working
conditions. As you know, if a millionaire on a desert island employs
three people for 1 cent a year, the per capita income is about
$250,000.01. Nor is the example frivolous, when even in the U. S. the
compensation for an average CEO is hundreds of times that of the
average worker. Imagine the ratio in a country where people get paid
cents a day.

Now, the NYT article indicates that many factories are being forced to
improve their conditions because of labor shortages. This is a recent
development, but it's great. Of course it would be wrong to blame
foreign buyers like Home Depot for *all* China's internal
problems--merely another variation on imperialism. Still, we can take
responsibility for our part in the mess, and that's the point of
restricting imports from sweatshops. You may believe this would only
discourage more factories, but what is this belief based on? If these
factory bosses are raising wages in response to labor shortages,
mightn't they do the same if threatened with losing the U.S. market?

Lastly, there's the question of whether it's moral to knowingly buy
the fruit of such horrid labor. If the factory described in my article
was down your street, and the people were living in the same
conditions, an average of 5 of them losing fingers each month, getting
paid the U. S. equivalent of those wages...would you go to the gift
shop?

Thanks again for writing! No obligation to write back, of course, but
I'll welcome any further thoughts you have.

Bill Powell


I'll publish more of the discussion at a later date. Enjoy.

Also, coming soon, a controversial article!

God Bless.

Labels: , , , ,

February 28, 2007

Some Free market discusion.

I've been engaged in an ongoing debate with Bill Powel from Bill Powell is Alive, on the practicallity on a theoretical level of a new bill to restrict trade with China to products not manufactured through 'sweatshop' labor. It began as a response to a post on his blog attacking the brutality of Chinese factories and lauding the bill. I, of course am against the bill on the grounds that it will only hurt in in the long run.

Here a link to his post.

I wish the conversation was made available through the comment's section of his blog but, alas, I cannot comment on Mr. Powell's blog. The debate has transcribed instead through E-mail. I don't know if Mr. Powell would appreciate my publishing his mail that he sent me but I will publish my first response to his post:

It would seem that because people traveled so far just to get sweatshop jobs that they are better than the alternative, no?

Anyhow, proof that the further influx of the free-market is helping China here, and here. Wage slave indeed. Wage slavery can only exist where someone holds a monopoly on employment. With hundreds of companies owning factories in China, this is not the case.

As to that bill, I believe a restriction on imports would do more to discourage the building of factories in China period rather than improving their conditions. This would hurt China (and its people) far more than any inhumane factory conditions.


With Mr. Powell's permission I'll publish the entire rest of it because it's gotten pretty interesting. Until then, I hope you enjoy.

God Bless.

Labels: , , , ,