From: Rahul Dave (rahul@reno.cis.upenn.edu)
Date: Mon Nov 27 2000 - 14:10:15 PST
I got this from you:
>
> > 1. While some protesters were principally concerned with keeping U.S.
> > incomes high, some others were principally concerned with raising Third
> > World incomes to prevent a race to the bottom. The first group tended to
>
> These protesters are morons who doesn't know a damned thing about history.
> South Korea, Republic of China (Taiwan), Japan, and Hong Kong all had
> extremely low wages compared to the U.S. after WW2, and their economies
> survived by having basically, sweat-shops. As their economies grew, so did
> their wages. Every country has to start somewhere, and by cutting off trade,
> you're cutting off these countries' one shot at making the first step toward
> modernization.
>
Hmm...As was said in the article you quoted, cheap labour is the selling
point of many developing countries.
When the economies grow..higher wages increase
the living standard but start to remove the economical advantage of the production of goods there.
So it would seam to be a sustainable model as longs as the per capita income
in the developing country, while higher than others, remains low enough
compared to that in the developed country, so that there is a 2-way
economic benefot to outsourcing.
But the countries you quote seem to have done better than that by using economic
progress from "sweatshops" to jumpstart other aspects of their economy, it would
seem..sort of a bootstrap.
Rahul
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