Christine Romans of CNN had this segment on Your Money this Saturday on the slavish condition of garment workers in Bangladesh. She chastened all big retailers for their sub-contracting practice that ensure deniability and avoid accountability.
The economist in me disagreed. Those poor workers, making 10 to 30 cents an hour, would fare much worse without these enslaving enterprises. The world is not absolute and their choices are limited. The alternatives to sewing garments for 10 to 30 cents an hour could be starvation or becoming sex salves. These “slaves” used to be in Manhattan. Then they moved around the world as company “chase the cheap.” Hong Kong, Taiwan, China, Viet Nam they went through. These countries all became wealthier and moved up to better societal standing. This is like the minimal wage argument. The point is not about how much the minimal wage is. It is about how to move people out of it.
On the other hand, I also see generations stuck at the lowest rung of social-economical ladder with no prospect of getting out. Survival shackled them down and there is no breaking free. Someone must give them a booster else they cannot escape the purgatory. This is where Fair Trade movement came in. Consumers actually will pay more than what would be economically the best price for that cup of coffee. The certificate guarantees that the extra money goes to the coffee farmers, not Starbucks.