General Discussion
In reply to the discussion: Since Free Traders believe that America should lower its standard of living to help the third world [View all]Douglas Carpenter
(20,226 posts)And wouldn't they be limited only to very exceptional English speaking university graduates? - needless to say a very small percentage of the population of a country where 70% never finish high school. No, I wouldn't say that globalization caused the poverty. I just don't see any evidence that it is relieving the economic stress and a lot of evidence that it is doing the opposite. I actually had my own experience back about 15 years ago when I was persuaded to finance a garment operation in Antipolo that outsourced to a manufacturer in Pasay. What became clear to me after two years of attempting to just break even - is that in spite of investing thousands of dollars and my friends working 130 hours per week and hiring about 20 workers - it was simply not possible to make a sustainable profit without engaging in the most exploitive of practices like one person over in Antipolo City who essentially hired bonded labor from some impoverish village in the Visayas. Now even the central manufacturer in Pasay has shut down because Woolworth's could fill their orders a lot cheaper from an operator out of China. This is the natural result of the race to the bottom. What was once manufactured in the Northeast of the United States moved to the Southern states of the U.S. and then across the border to the border towns of Mexico and then to operations in countries like the Philippines and then to the rural provinces of China. A search for the cheapest labor is not going to be content very long before it moves on to even cheaper pastures.