Cordial and Sanguine, Part 34: Blood, Sweatshops, and Tears By Roderick on June 9, 2012 6 My latest BHL piece: Why Libertarians Should Oppose Sweatshops. Conflation Debate, Labortarian, Left-Libertarian, Personal, Resistance Is Not Futile
Matt Zwolinski has replied here, and I’ve responded in the comments.
It is not clear to me how you know that the gap is sizable between employee benefits, wages, etc., and the profits earned by various corporations.
And simply because the strikes “work” or end in an agreement, does not necessarily mean it’s because the corporations have such a large profit margin to work with; it could simply be that whatever is compensated for the workers is passed on to the consumers through prices and the rest.
Because companies that were already fairly successful paying higher wages domestically in the u.s. have subsequently outsourced to low-wage regions.
If they could so easily afford to raise prices for the consumer, why wouldn’t they do it already? Why wait for a strike?
The fairly successful corporations engaging in business practices in America seems to be itself a subjective determination, and to find cheaper labor hence increasing profit also seems to be the game. So, if the practice of maximizing profit (perhaps at the expense of many jobs–I’ve read somewhere, I believe, that the outsourcing of American jobs only accounts for about 2% of its workforce) is somehow in your view the issue, it still doesn’t answer how you know that the gap is sizable. I suppose I’m looking for numbers to compare in this context, and then maybe we could go onto the virtues or vices of that gap should it exist (it most likely does). Also, which corporations and for what reasons do they express as toward the move of outsourcing their jobs, if they express such things? I suspect they would argue “to maximize profit” or something along those lines.
Of course I was only stipulating, but in response perhaps they can’t easily afford the increase; price increases would entail less competitiveness in the market for a particular product, therefore the lesser incentive for compensating the employees through price increases. I mean, that seems plausible, doesn’t it?
Because companies that were already fairly successful paying higher wages domestically in the u.s. have subsequently outsourced to low-wage regions
Doesn’t this assume that the revenue to companies in the low-wage regions is similar to the revenue in the domestic high range area? If the revenue in the low-wage regions is also lower, your argument doesn’t establish that there is room for bargaining to raise wages.
But isn’t the market typically the same?