Advantages Of Poor Living

People live in developed countries have enjoyed better social lifestyle compare to people live in developing countries that can hardly survive because of low standard of living, poor educational system, loose regulation. All of these circumstances force them into having poor living standard due to the inability to sustain their family or themselves, which in turn see sweatshop as a great solution to their problems even if they know that they will face hardships such as low wages, environment and health care system, are lag from standardization. Generally speaking, it could be seen that sweatshops, normally, are located in third world countries that have cheap labor forces, allow them to impose strict regulations and fit their high demand for

The red line is the demand curve that represents the interest and how firm decides to hire worker. At point W1, we can deduce that the wage is very low which one of the condition for a firm or corporation to be considered as a sweatshop is actually how competitive market works. The salary may seem to be lower compare to point W and point W2. However, the actual effect or the actual benefit is that it increases the amount of jobs as shown at point Q1. People would like to reduce sweatshop with the objective to banish it, but people also contradict their action at the same time. For example, if you were to go to a supermarket, with the option of a 25$ T-shirt and a 50$ one that are exactly the same. Which do you prefer? Humans are price takers and we would absolutely choose the product that would benefit us. In this case, a 25$ T-shirt would allow us to buy 2 of them compare to the 50$ one. Therefore, the existence of sweatshop must be preserved not for those who live in the developing countries because they need job, but also for those that are in the developed world because they also enjoy cheap product that is the effect of sweatshop. Therefore, we can conclude why Miller, an economist, reached the conclusion that “Either you believe labor demand curves are downward sloping, or you don’t’’… Of course, not to believe that demand curves are

In order not to get confuse, let us stay on the same country, Bangladesh. 36% of Bangladesh population lives on just 1 dollar for an entire day whereas stated above the U.S’s citizen earn 10.55$ per hour. Therefore, we should abandon the thinking that the wage is extremely low because for an example, the average of the entire Bangladesh population income per day cannot even surpass the income of the U.S citizen per hour. Moreover, the sweatshop brings the positive effect to developing countries such as Bangladesh. As repeatedly mentioned, Bangladesh average hourly wage is 0.13$ which require them to work 10 hours to get to 1$. However, if you work in the sweatshop, in garment sector for example, you would earn 0.24$ per hour which is double the average wage per hour (workers, 2015). In the case of Bangladesh, the presence of the sweatshop would at least push out people that earn 1$ a day because if you work 10 hours per day then you would escape the 1$ per day income due to the fact that 10 hours equal to 2.40$ already. As a result of higher income, the economic growth and GDP would increase alongside it. Plus, people around the world can also enjoy good quality product with great price. Hence, we can conclude that people would compete to get the job at the sweatshop and it is a mutual benefit situation to both the firm and the labor and those we should preserve in order to maintain this great