Neo-Colonialists Begin Campaign Against Obama's Fair Trade Agenda

by: David Sirota

Sun Jan 18, 2009 at 15:58


Nicholas Kristof's latest New York Times column makes the case that corporate colonialism and human exploitation aren't just not bad, but actually a great virtue that will save the developing world - and that those working to stop such colonialism and exploitation are the root cause of global poverty. I kid you not:

Mr. Obama and the Democrats who favor labor standards in trade agreements mean well, for they intend to fight back at oppressive sweatshops abroad. But while it shocks Americans to hear it, the central challenge in the poorest countries is not that sweatshops exploit too many people, but that they don't exploit enough...

I'm glad that many Americans are repulsed by the idea of importing products made by barely paid, barely legal workers in dangerous factories. Yet sweatshops are only a symptom of poverty, not a cause, and banning them closes off one route out of poverty...

When I defend sweatshops, people always ask me: But would you want to work in a sweatshop? No, of course not. But I would want even less to pull a rickshaw. In the hierarchy of jobs in poor countries, sweltering at a sewing machine isn't the bottom.

This is quite literally the argument of a sociopath - and the problem is that sociopathy is so prevalent in discussions about trade and globalization that we barely even notice it anymore.

David Sirota :: Neo-Colonialists Begin Campaign Against Obama's Fair Trade Agenda
Think about how intellectually dishonest Kristof's argument is: He is basically saying that when American trade policy incentivizes corporations to employ young women in 15-hour shifts in sweatshops for $1 a day, we're doing those women a favor, because that situation - however horrendous - is better than them having to dig through garbage dumps or serve as prostitutes for subsistence. The assumption - totally unquestioned - is that it's an either/or choice: According to Kristof, either these women can have the great honor and privilege of being exploited, or they can face a worse hell (like, he says, pulling a rickshaw). And America should be unapologetically proud of itself for providing the opportunity for the former.

Left unsaid, of course, is that the size of the American market coupled with strong labor/wage protections in our trade policy would likely compel another alternative to the binary sweatshop-or-worse-hell paradigm.

Here's the deal: Because our market is so big, economists will tell you that every multinational corporation wants to do business in the United States - that is, every corporation that wants to be globally competitive wants to be able to sell things to Americans. This is a huge amount of potential global economic leverage. The standards we choose to set as conditions for access to our market set standards throughout the world For example, our trade policies include restrictive patent protections for pharmaceutical companies and foreign governments enforce such patents even though they keep many medicines prohibitively high for their impoverished populations.  Why? Because if they don't, they could face crippling economic sanctions (read: loss of access to the American market they need access to).

Unfortunately, our current trade policy - and specifically, its omission of basic labor/wage/environmental/human rights standards - means we don't use the economic leverage that comes with that market power for anything good. While we do, for instance, protect drug industry profits with restrictive provisions for patents, we don't protect human beings and deride proposals for such protections as evil "protectionism" (as if the patent protections aren't protectionism). By saying to corporations that they can have access to our market with almost no preconditions, we incentivize only one thing: a race to find the most exploitable labor and most lax environmental laws in the world so as to bring down product prices and inflate profits as much as possible.

In mimicking Margaret Thatcher's famous "There Is No Alternative" refrain, Kristof would have us believe that the current standards-free system is inevitable and unchangeable - and worse, that any effort to change it would only hurt the poor foreign workers he purports to care about. But clearly there is an alternative. If the United States government's trade policy said companies could only have access to our market if they followed the most basic labor/wage laws that prevent gross sweatshop exploitation, that would economically incentivize companies to improve their labor standards by making access to their American customers contingent on better behavior. And thus the either/or paradigm would be mitigated, if not eliminated.

Kristof and the neoliberal elites his writing represents likely knows all this - they may be sociopaths in their carefree attitude toward human exploitation, but they aren't stupid. They want this either/or paradigm to exist, even though it doesn't have to. Why? Because it both alleviates their privileged guilt and because it justifies the shredding of the social contract.

America's ruling class - whether wealthy pundits, Wall Streeters, Washington lobbyists, corporate executives, politicians, or your typical suburban SUV-driving hundred-thousand-aire - desperately needs ways to avoid guilt and instead feel good and moral about sustaining lavish lifestyles through human exploitation. And so they have people like Kristof, Tom Friedman and other kindred spirits to give them a reasonable-sounding White Man's Burden-style argument that helps them feel righteous rather than stoic in their excess; makes them feel like they are Saving the Children when they buy a pair of expensive slacks made by children toiling in a foreign sweatshop; and makes them feel that any pangs of guilt or efforts to change things are what's really creating such bone-crushing poverty in the Third World. As Kristof himself proudly declares, the problem with America's trade policies is not that the sweatshop culture they incentivize "exploit[s] too many people, but that they don't exploit enough" and that efforts to end human exploitation and poverty are "clos[ing] off one route out of poverty."

Such rhetoric psychologically reassures the decidedly upper-class readership of the New York Times op-ed page that they don't have to change their behavior or political disposition at all in order to feel like they are good people. And many, of course, follow up with traditional gestures of the noblesse oblige in order to buttress the positive self-image neoliberalism manufactures for them. For instance, Kristof proves to himself that he's not the mundane colonialist that he is by penning other columns about the horrors of foreign poverty. Likewise, millionaire "liberals" who back the most exploitative globalization policies give money to anti-poverty charity. And yet, the structural policies that create poverty go untouched.

By this insane logic, then, we should be working not only to prevent any kind of labor/wage/human rights/environmental protections in our trade policies, but to start shredding the social contract here at home. By this logic, our minimum wage, workplace safety standards, minimal union organizing rights, and environmental laws must be abolished so that companies will employ workers here - regardless of the terms of that employment. After all, at least you can get a below-the-poverty-line job at Wal-Mart and not have to dig through trash dumps to subsist, right?

Well, sure - but it's a false choice. When all the basic employment protections we take for granted were originally passed, our nation decided that the either/or choice didn't have to exist - and we were right. For example, we understood that even if state and federal governments made mining companies permit unions and made mining companies pay workers a minimum wage, they would still maintain operations in places like Colorado and Montana. Why? Because there's trillions of dollars worth of natural resources in those states that makes it worth staying, regardless of those basic worker protections - and if one company leaves, their competitor will come in and capitalize.

It's the same thing in our globalization policies. We should understand that companies will keep employing the foreign workers that Kristof claims to care about even if we include minimal labor/wage/human rights/environmental standards in our trade pacts. Why? Because there's trillions of dollars worth of customers in America that makes it financially smart to conform to such standards, rather than closing up shop. Such standards would also create an economic incentive for foreign countries to improve their domestic workplace laws and enforcement of said laws so as to get access to the American market (Right now, the incentive is the opposite: Countries are encouraged to decimate their domestic laws so as to attract foreign investors, and those investors know there is no economic cost - ie. loss of access to the American market - for going to the countries with the worst possible conditions).

Admittedly, over the long-haul, we may not have as much potential market-influencing power as we do now. With the rise of China and India, and the Bush-weakened domestic economy, it's possible the American market will shrink in relative size to the rest of the globe, and therefore we won't have as much market leverage to incentivize such standards. But that's why there's so much urgency to the basic fair trade reforms that President-elect Obama campaigned on, and that so many congressional Democrats have promised.* Not only will those fair trade reforms begin preventing Americans from having to compete in an unfairly rigged and recession-exacerbating race to the bottom with foreign slave labor, but they will use this potentially fleeting moment of American economic supremacy to lift the world up, rather than kicking it down.

Ultimately, such a paradigm shift will be far more important to restoring America's image in the world and alleviating global poverty than the (admittedly significant) symbolism of removing George W. Bush and replacing him with a leader who has ancestral ties to Africa. That's the secret the "exploitation is good" sociopaths from Kristof to the Chicago Boys don't want us to grasp.  

* And let's be very clear: Nobody is proposing the institution of standards that even approach America's domestic standards. No one is proposing a global American-level minimum wage or workplace safety standards or environmental protections. What has been floated are the most minimal protections against the worst kind of exploitation (child labor, right to join a union, etc.) - and yet even these most minimal standards are being opposed by the Establishment.


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David ignores the argument in said column (4.00 / 1)
that with non-sweatshop labor standards factories will not be built at all in these countries but rather in countries which already have such labor standards and worked up from sweatshop labor. David needs to argue that the USA needs policies that will help countries such as Cambodia to create good jobs without the export market. China is already facing the problem of how to create jobs for the domestic market alone.  

Darkness has a hunger that's insatiable, and lightness has a call that's hard to hear.  

Nah, you ignore (4.00 / 6)
Nah, you ignore what was written in the post, leading me to once again offer the refrain: please read the post before you comment.

Had you read you would have seen this:

Such standards would also create an economic incentive for foreign countries to improve their domestic workplace laws and enforcement of said laws so as to get access to the American market ( Right now, the incentive is the opposite: Countries are encouraged to decimate their domestic laws so as to attract foreign investors, and those investors know there is no economic cost - ie. loss of access to the American market for going to the countries with the worst possible conditions).

This has been another edition of "please read the post before you comment."


[ Parent ]
I don't buy that (4.00 / 5)
the whole point is that it would encourage those countries to adopt those standards. Since these companies have already made the investment there, a rise in labor standards wouldn't necessarily mean they would turn tail and run.

Now it may mean they would have to focus on a more regional or gasp even a domestic market. This is actually an even more beneficial and economically efficient outcome. Then actual "comparative advantage" comes into play instead of the falsely maintained and completely exploitative comparative advantage of extreme poverty wages that we have now. In addition, the higher labor standards would mean that the workers may actually accumulate disposable income which they could use to purchase the manufactured products in their country. Classic Fordism. Business, Labor, and Government. It created the greatest world economy in the history of man (i.e. post WWII USA) and it can work in other countries as well. Ancillary benefits include reduction of greenhouse emissions because manufactured products would not have to travel half-way around the world to travel to market and the re-invigoration of our domestic manufacturing and our middle class.


[ Parent ]
Very good point (4.00 / 1)
You are very right: When companies make capital investments in a country, it makes it harder (read: less profitable) for them to leave that country if/when that country's statutory standards improve.

[ Parent ]
but they do leave for cheaper places all the time -- (0.00 / 0)
from here, to Mexico, to Eastern Europe to India and China to Vietnam to ... Always leaving.

And i don't think US Corps. build anymore -- they just contract and businesspeople (and/or govts) in those countries build and staff. China's factories that produce goods for our market are almost all built by them, no?

I think they built in Mexico originally, but then realized many countries (where people would work for less) would bend over backwards to help.

The higher the financial score on this list, the less workers get paid -- http://bwnt.businessweek.com/i...


[ Parent ]
Yes I think that's true (4.00 / 1)
and that's all the more reason to lift standards everywhere. Because then the race to the bottom has to stop. You put a floor in and then the whole equation changes and instead of up and leaving as soon as there's a cheaper labor source (as is the case now) you either (1) relocate back to previous areas whose competitive advantage is more likely based on local resources and transportation costs or (2) you stop the musical chairs of factory relocation and invest in the places you've built and work on a more regional export market (to China and east Asia for instance) and your own internal domestic market (in which the workers can now afford the products they are making).  

[ Parent ]
i'm with you, but that's not our job (0.00 / 0)
nor should it be our priority -- especially because we are hurt here whether jobs go to high-standards countries or low.

We need to stop rewarding companies for moving jobs away from here, and we need to start doing like Japan and Germany and some others do -- get protectionist about jobs/industries here, and restrict imports that contribute to harm to American workers and companies, etc. There are so many things we could be doing, but aren't--and tons of things we do do that are absolutely terrible.  

I don't think it should be our official policy to dictate how other countries operate in terms of labor laws/standards-- it's never done for our benefit, nor for people there. We should focus on us, our laws, our jobs, the way goods flow in or out, and on stopping the extraordinarily unfair access, power, and rewards corporations get without giving in return.


[ Parent ]
Well I don't see why we can't do both (0.00 / 0)
and why both strategies don't complement each other. Also, we don't have to dictate anything. All we really have to do is enforce and base our trade policies around the ILO treaties we and every other country has already signed. This for instance, would preclude any 'free' trade deal with Columbia until workers are free to organize without threat of violence or retribution (would be nice in this country too!).

Much like we already have laws on the books that can be used to regulate greenhouse gas emissions (i.e. the clean air act), we already have international treaties and laws on the books that can raise standards everywhere. The enviro laws need tightened up, but the labor laws for the most part are already there.  


[ Parent ]
but why have these "deals" at all? (0.00 / 0)
esp if there already are treaties and int'l laws that apply?

Tweaking things that were created specifically to benefit companies, regardless of what happens to us or them seems dumb.

We -- and most other countries -- have traded, and imported/exported goods for thousands of years without these deals being necessary.  


[ Parent ]
if companies want access to the US market -- (0.00 / 0)
whether they're "US" or foreign companies or whatever -- that's where you put standards and laws and regulations, etc, into the picture, i'd say.

And that's better than forcing other countries to install predatory capitalism and standards and other things that aren't helpful to anyone but the companies. And there's also the fact that we don't watch them anyway (and can't feasibly do so) and as a result, we have shoddy and/or unsafe products in every store -- including food and drugs.


[ Parent ]
Again I agree (0.00 / 0)
And I don't think it's a matter of only the US enforcing ILO standards. I think it means a significantly beefed up ILO administered by the UN. We're talking la-la land now, but that's the goal anyway.

[ Parent ]
i think we have too many vested interests in (0.00 / 0)
keeping int'l orgs and the UN either weak and toothless, or under our control.

Look at the World Bank -- the $$ is dependent on them changing their economies to benefit corporations .

That's why i think a carrot approach and a domestic one is better.

Like, France for instance -- they protect their alcohol and culture, etc, with requirements and laws, so that even if foreign products flood their markets, a certain percentage must be made there and aired there too, and they zealously protect their domestic assets worldwide (like what can or can't be called "champagne" and other things). Japan protects all its industries and simply restricts how much foreign stuff is allowed in. The EU too, has tons of restrictions and protections. ...


[ Parent ]
Yes (0.00 / 0)
" i think we have too many vested interests in
keeping int'l orgs and the UN either weak and toothless, or under our control. "

But that doesn't mean we give up on working to change that (as well as our domestic trade policies).  


[ Parent ]
i think we people can't change that -- (0.00 / 0)
other countries/blocs have to, or the EU, or something.

We can only vote for or against officials who will, or pressure sitting officials -- i think, tho, that many if not most Americans feel that we should be in charge -- and if not, the orgs shouldn't be strong enough to act against us.


[ Parent ]
it's a very slow process (0.00 / 0)
like generational. But so was ending slavery. But I think you agree with me that we still, even as individual citizens, do have a role to play.

Remember that change happens through organization. So as we work to organize, we work for change and eventually it will happen.  


[ Parent ]
i do agree -- (0.00 / 0)
it's just that i think we need to totally fix the way our govt operates here first and foremost, and get it working for us instead of against us.  

[ Parent ]
Just a thought: (0.00 / 0)
France rioted because the youth couldn't get jobs.

Theirs is not a model we should follow.


[ Parent ]
great (0.00 / 0)
so you're willing to pressure the american government to invest the money it would take to support the century of industrialization it will take to bring wages up in the entire world to American levels?  Or at least do so in Mexico/Central America to foster the dream of a regional economy?   And you're also willing to bear the moral cost for undemocratically foisting decisions about industrial polilcy onto people in poor countries who have no voice in american politics?  Or would you rather support redistributing the $25,000 a year or so that American per capita GDP is above global per capita GDP (which is about $10,000 a year) without further industrialization?  

Those are your likely options, and if you don't want to pick one, just get the U.S. government to leave poor countries alone except in very very select circumstances and you'll have done more than your fair share.  

Most good work can be done outside the framework of the goverment - for example by letting more migarnts into the United States so they can remit income and lowering the costs of remittance (usually justified as "security" related).  

With all these other options, why look for the imposition of trade/labor standards by the least globally democratic organization in the world (the U.S. government). These trade/labor agrees are not and never were genuinely meant to be for the benefit of people in the developing world in a real way.  It's just another group of powerful people in the Global North telling people in the Global South waht to do - albeit with a more benevolent mindset.


[ Parent ]
Companies don't leave (0.00 / 0)
They just switch contractors.

And if there are minimum standards, the race to the bottom in contractors doesn't work any more.

Beyond a certain level they lose access to the American (and by extension Canadian and European) market and therefore there's no incentive to continue the move towards slavery.

Chinese internal market goods could keep up like that for a while, but everywhere else would have to raise standards (therefore creating more and smaller contractors) and even China couldn't hold out forever - which would also, as a benefit, show that the Chinese model doesn't work long-term.

Forgotten Countries - a foreign policy-focused blog


[ Parent ]
who will enforce the minimum standards? (0.00 / 0)
and who will decide what they are?  I'm all for global governance, but a piecemeal option like this is pretty poor.  It would make more sense to give the ILO some teeth and have its meetings be as important as WTO meetings.  That would at least provide a modicum of representation to poor countries' populations - though still so miniscule that it would be hard to trust to act in the interests of those populations.

So as soon as progressives in the U.S. can sell the American people on giving up "sovereignty" in exchange for a move towards global equality andn fairness, I'll be right there to support an idea that depends on the American political system acting out of goodwill towards people who don't live in the United States or a few other places in the world.


[ Parent ]
Seriously... (4.00 / 1)
Somebody should send Kristoff a copy of A Theory of Justice.

Another alternative view (4.00 / 7)
In Nike to the Rescue? Africa needs better jobs, not sweatshops, John Miller provides some additional arguments against Kristof's view that apply just as well to Southeast Asia as Africa.

First, sweatshops are not very effective poverty-fighting mechanisms:

. . . export factory jobs, especially in labor-intensive industries, often are just "a ticket to slightly less impoverishment," as even economist and sweatshop defender Jagdish Bhagwati allows.

Beyond that, these jobs seldom go to those without work or to the poorest of the poor. One study by sociologist Kurt Ver Beek showed that 60% of first-time Honduran maquila workers were previously employed. Typically they were not destitute, and they were better educated than most Hondurans.

Sweatshops don't just fail to rescue people from poverty. Setting up export factories where workers have few job alternatives has actually been a recipe for serious worker abuse.

Second, labor standards don't necessarily block economic development:

. . . recent experience shows that sub-Saharan countries with decent labor standards can develop strong manufacturing export sectors. . . . workers in Mauritius earned ten times as much as those in Ghana-$384 a month in Mauritius as opposed to $36 in Ghana. Mauritius's textile and garment industry remained competitive because its workforce was better educated and far more productive than Ghana's. Despite paying poverty wages, the Ghanaian factories floundered.

Finally, there are much better progressive development options available:

. . . Debt relief, international labor standards, and public investments in education and infrastructure are surely better ways to fight African poverty than Kristof's sweatshop proposal.


Standards (4.00 / 1)
I believe that we should have two sets of standards for foreign labor of imported goods.

1) Solid minimum standard

The minimum standard need not be high by our standards, but protect against the worst mankind dishes out, such as slave labor, corporal punishment, etc.

2) Moving relative standard

I'd like to see a minimum wage on imported goods based local conditions like the county's GDP or something like that.  The wage should be adjusted each year so the conditions continually improve.

I actually agree with part of what Kristof says.  I do think providing jobs in poor countries largely helps those with the jobs.  But there are also abuses and tons of problems.  We need to make sure the benefits are emphasized and the problems diminished.


Instead I want to form political alliances with people who want standrads higher than that. (4.00 / 2)
Most importantly alliances with people in the countries where standards are as low as you allow.

Union leaders are almost always the first to be killed in right wing takeovers and governments. We embrace china not because it stopped being 'communist', it still allows no elections or free speech, but because the unions have no power.

Through-out Latin America, some with Democracies older than memory, older than Canada, union leaders disappear first, even before the Chicago School moves in to take advantage of the Shock Doctrine.

Fair trade starts with respect.


Change
"We must break up the banks and never again let them get so big that they distort our politics and take down the economy.


[ Parent ]
awesome! (4.00 / 1)
Well, if anyone looks at trade in terms of Machiavellian, sociopathic, power for power's sake, conquer and dominate...

anybody notice we're losing our ass?

NoSlaves.com  


The Economic Populist


it never even occurs to Kristol -- (4.00 / 3)
that we desperately need jobs here, and can't even afford to shop anymore.

[ Parent ]
Yeah I feel like he subscribes to the Tom Friedman (4.00 / 3)
school of 'lazy fat Americans deserve what's coming to them'.

Because you know, we're all just autoworkers making $150,000 a year for doing nothing!  


[ Parent ]
Trade (4.00 / 1)
Every other empire always used their power to force countries to buy their imports.  As a country, we've been more altruistic than that.

But is it really isn't just about countries, it is about corporations.  Corporations are holding their monopolies much like countries used to do, just using cheap foreign labor.

I used to be a strong free trader.  I haven't actually changed my opinion on that, but I have changed my mind about the reality on the ground.  I hadn't looked at it from a corporation's point of view before.  Also, I've been more convinced lately that the job conditions overseas are a problem and really do need active effort to improve over time.

I'm still not an economic populist.  I still don't see why my next door neighbor deserves a job more than some random person in another country.  All humans deserve respect and dignity, not just those in our own country.


[ Parent ]
I don't think it's like "my neighbor deservers a job more....." (4.00 / 2)
than someone else.

I believe it's "my job should not be sacrificed for the sole purpose of allowing a corporation to exploit the labor of someone else".

I believe in trade. But I also believe in true comparative advantage outside of wage rates. I believe that labor costs as a comparative advantage inevitably lead to a race to the bottom and declining standards of living for everyone. It's basically been the history of the world since the 1950s when the New England textile factories started moving to the non-unionized south.

Do I think the South shouldn't of had the opportunity to have textile mills? Nope. But I do think that the opportunity should have come from comparative advantages other than an exploited labor force (i.e. cheaper land rates, closer proximity to cotton sources, etc.).  


[ Parent ]
Exactly (4.00 / 2)
Free movement of labour and capital is fine. Exploitation of economic cleavages and hence workers, all for corporate profits, is decidedly not fine.

Forgotten Countries - a foreign policy-focused blog

[ Parent ]
Ever noticed what "losing your ass" means to you? (0.00 / 0)
That's a life beyond the wildest dreams of most of the population of, to pick a random example, Tanzania.

Running water!

That's not to say that it doesn't suck losing your job in Ohio, just to say that it doesn't exactly get you to the front of the triage queue. Other solutions that don't screw over a couple of billion people are worth exploring too.

I don't expect you to agree - I've seen you go off on one at dr anonymous for raising the question of the concerns of foreign workers. But America has a much better safety net, and unless you're willing to effectively deny the humanity of the rest of the world, I think they have to get the first consideration.

Forgotten Countries - a foreign policy-focused blog


[ Parent ]
Dr. Anonymous (0.00 / 0)
posts a lot of fake information as I recall and I wasn't the only one who notices it.  

I think you must be borderline to not understand the sarcasm of my comment in reference to Sirota's post.  

As far as some false belief one must give up their standard and living and jobs due to Tanzania not having running water, that is pure fiction.  

NoSlaves.com  


The Economic Populist


[ Parent ]
can you just cite one thing that i've said that's fake? (0.00 / 1)
just one?  I'm done asking you for approval - either you justify what you keep saying about me, or I start using what I know - which is the difference between the racism of ignorance and frustration and the racism of an ignorant a$$hole.

@Q#$@#$@#$#@#@$@##@$@#Q$


[ Parent ]
Stability (4.00 / 3)
Kristoff's argument is not just the argument of a sociopath.  It is also incorrect.

Building up middle classes in those countries is essential to a stable global economy.  

After all the real great depression happened when we were a country of sweatshops and rich folk.  The current one happened on the back of a rising inequality.  Inequality is inherently associated with depressions as it is an inefficient way to distribute goods.

http://transgendermom.blogspot....


Exactly (4.00 / 1)
I used to have a naive belief that conditions would improve automatically as a natural course of things.  Now I believe we need to take a more direct approach.  (I guess is some way I still think the same way, given these conditions someone will take the direct approach, but now I think I should be involved.)

[ Parent ]
What is to be done - trade (4.00 / 1)
   I am starting with a bit of an aside about what can be done in a crisis.
  When FDR became president he presented to congress had it passed the AAA, Agricultural Adjustment Act. It was a radical departure from the lase fare policies of the former Hoover administration. But FDR was willing to experiment and try whatever would work.
  Farmers were up in arms at the foreclosures on their land because of the collapse in farm produce prices that had been getting increasingly worse since the end of world war one. Farmers had taken judges in rural Iowa and dumped them out on the edge of town nooses around their necks and grease poured over their heads. Insurance company agents were forced to agree to farmers terms at gun point when the held auctions to sell off the assets on foreclosed farms. Farmers were forming vigilante groups and were preparing to go on strike.
  The AAA encouraged farmers to plow under and not grow crops, it paid them not to grow crops so that they would get a fair price for their produce. This was a form of state regulation in capitalism. It did not go as far as the more radical farmers wanted to go in that it was not a guaranteed income, but it stopped the movement towards a Farmers Holiday and Farmers Strike that was emerging. It kept agriculture from going to more radical extremes. Too bad, perhaps it would have been better if there had been a revolution in the 30's but under FDR we got a progressive government and a form of state capitalism that saved the country from fascism or communism. We will never know which.
 Trade policy should not be based on the path to the cheapest labor source possible.
  But that is what lase fare capitalism would have us believe is the way to a brighter and better world. Since American workers on the average have been loosing out in struggle of wages versus inflation at least since the 1970's, the only solution that the neocons propose is that we shop for the best bargain and that we all head for Walmart, encourage the breaking up of those evil inflationary labor unions and accept whatever trickle down that the rulers are willing to urinate upon us.
 Following their logic what we all need to do is to work hard for whatever pittance we are granted and invest in the stock market and become share holders in the capitalist dream. In fact on that theory we should eliminate Social Security, and simply put all our hopes in the good graces of the market because that is what will make us all rich or at least will give us the best return on our investment dollars.
 For those of us unfortunate enough to not have any income to invest, there is always debt. If we borrow enough to buy a home we cannot afford and then pray to the great debtor god in the sky we may someday be foreclosed upon and give that home back to the good creditor who took us into their good graces in the first place. Or if we decide not to accept foreclosure we can always work at 2 or 3 jobs, and spend every waking hour at the beck and call of someone who is our lord and master for all the time we are not getting some well deserved rest.
  Sound like feudalism? Well that is where the prophets of capitalism would have us, a far cry from the socialist dream that Marx envisioned as the inevitable result of advanced capitalism. It is strange that the former Soviet Union gave us the most extreme capitalist state and Maoist China gave us the most extreme example if capitalist production. It is almost as if they were modernizing to set the stage for capitalism. Something that was supposed to come first setting the stage for socialism.
  On the other hand here we have in the United States a situation where the most advanced form of capitalism may be leading to something else perhaps we are seeing the beginnings of something more that more state capitalism, perhaps Obama is leading us into the beginnings of socialism. Perhaps Obama will take an approach like FDR and try what works and discover that what works best for the people is socialism.
  Perhaps he will start with an economic policy that encourages unions, fair wages and corporate responsibility. The corporations need to toe to a green civic line, or get nationalized and that should be simply it. No playing around with state capitalist half measures time for socialism. A nice fantasy could be played out here but I am going to simply state that a fair wage paid to every worker around the world is the least that we are owed but those who have lived off our sweat for so long.
  Passing the labor act that makes it easier for unions to organize would be a start. imposing fair labor and environmental practices on those who would trade with the USA is another. With that and a real plan for changing over from fossil fuel economies to one driven by renewable energy, there may be hope for the world and it is certainly not in sweat shops. It may be in a little sweat equity though.
   

This is why, as with Friedman, I never read Kristof (4.00 / 3)
Because, like Friedman, while he gets it right sometimes, he's totally clueless most of the time, and promotes what he clearly views as a kindler and gentler brand of neoimperialism in his pieces. Like Friedman, he operates within a made-up reality in which inconvenient truths are either ignored, glossed over or mischaracterized. His whole shtick is basically yeah, we do bad things, and we really have to stop it, but we also do lots of really good things, which over time can end the bad things, so overall, even though we do some bad things, we're basically good! Which, basically, is Bush's shtick. I don't know if his panglossianism is sincere, or a put on, and don't really care. But his take on things is so divorced from reality, not to mention morality, as to be less than worthless. This is White Man's Burden, 2009 edition.

And the scary thing is that lots of self-described "moderates" still buy it. Or at least want to buy it. Because they need to, to justify their upper middle class lives and corporate jobs. And pundits like Kristof exist precisely to make such people feel good about themselves and get over whatever lingering guilt they might feel. Friedman serves the same purpose. Brooks too, for the somewhat dimmer and more right-leaning outer-suburban types who like to feast at the Appleby's salad bar. Even Kristol, for people even further to the right. They're all part of a right-leaning spectrum that keeps insisting that, done, right, empire is good and necessary.

"Those who stand for nothing fall for anything...Mankind are forever destined to be the dupes of bold & cunning imposture" -- Alexander Hamilton


They Dream of Kristof (4.00 / 5)
Back in my college Macroeconomics class, this argument was expressed as "They're not poor because they work in sweatshops.  They work in sweatshops because they're poor."

Well actually, they're poor because they don't make enough money to support themselves.  If the people who hire them paid them enough, they would not be poor.  Providing jobs to people who would rather work them than stay unemployed doesn't release whoever provides the job from responsibility for how they treat them, just as saving someone from drowning would not give me any more right to mug that person than I have to mug anyone else.

The Post reported in 2005 that National Labor Committee Head Charles Kernaghan

gets angry when he recalls what a worker told him in Bangladesh: "If we could earn 37 cents an hour, we could live with a little dignity." (As opposed to the 21-cent hourly wage that barely staved off starvation.)

As CAPAF's Sabina Dawan observes, it's not as though the International Labor Organization and allied groups working to close such gaps and to see basic human rights protected in plants that make Western companies so rich are out to drive the people of Cambodia out of their jobs - or as though that's the inevitable result of letting workers go to the bathroom, or leave work to give birth.  Does Kristof believe that the Bangladeshi worker Kernaghan references makes 21 cents an hour because at 22 cents his plant would stop making a profit?

As Richard Rothstein wrote in his rejoinder to Kristof:

Kristof's logic would require that worker productivity in Indonesia be precisely 25 percent of that in Mexico, or that the cost of other factors be lower in Mexico than in Indonesia, offsetting higher labor costs. Otherwise, he could not claim that if Indonesian wages rose even a tiny bit closer to Mexican levels, seamstresses would be expelled to the garbage dump. But he has no basis for making such assumptions. While labor standards vary from country to country, technology for assembling apparel does not-that is dictated from New York, for all countries. Apparel manufacturers consider many issues in deciding where to site facilities; labor costs are one, but relatively small differences in labor costs are not.
...Even if a modest increase in Indonesia's minimum wage tempted manufacturers to move their facilities to, say, Mexico, the temptation would be frustrated if Mexico simultaneously enforced a comparable increase in its minimum. The fear that labor standards would cause manufacturers to flee only makes sense if some countries were exempt from global regulation. Kristof never explores why he thinks this is likely.

What's so often missing from arguments like Kristof's, backed by neoclassical economics, heartbreaking anecdotes, and the appeal of counterintuitive conclusions, is an engagement with questions of power.  As Rothstein argues, the anti-anti-sweatshop crowd often point to the history of sweatshops in the American garment industry, but they choose to overlook that American garment workers rose out of poverty not just through hard work but through collective action and collective bargaining to achieve the "labor standards" Kristof consigns to scare quotes.  But when sweatshop workers in third world countries join international labor and human rights organizations in demanding a better life, they don't get laudatory Kristof columns.

Instead, they get threats to their lives.  As Human Rights Watch observed last month, "there has been an ongoing pattern of violence against trade union activists in Cambodia."

Economic coercion isn't the only kind making maintaining the sweatshop status quo.  Larry Summers, in classic neoclassical style, may defend sweatshop labor in the name of "respecting the choices" of the people who work there, but doing so without a peep for those workers' right to organize without threat of murder is a cruel joke.

When Barack Obama mentioned the spate of assassinations targeting union leaders in Colombia, John McCain rolled his eyes.  If Nicholas Kristof takes such violent intimidation more seriously, maybe he should devote a column to it.  He could use a new bit - that Rothstein article critiquing Kristof's sweatshop apologia was published in 2005.


Two points (0.00 / 0)
1. I really like this point you make,
"the appeal of counterintuitive conclusions". I think that is something rife in pundit land that doesn't get explored enough.

2. It really is amazing listening to or reading Kristof because he knows first-hand the types of violence and exploitation that are the day-to-day reality around the world (e.g. his on-going series on the horrific lives of sex slaves around the world). The disconnect there is just so baffling to me. Maybe it's a part of the elitist "ick" feeling towards unions and worker solidarity.  


[ Parent ]
this post needs a lot of work (4.00 / 1)
Unfortunately, our current trade policy - and specifically, its omission of basic labor/wage/environmental/human rights standards - means we don't use the economic leverage that comes with that market power for anything good. While we do, for instance, protect drug industry profits with restrictive provisions for patents, we don't protect human beings and deride proposals for such protections as evil "protectionism" (as if the patent protections aren't protectionism). By saying to corporations that they can have access to our market with almost no preconditions, we incentivize only one thing: a race to find the most exploitable labor and most lax environmental laws in the world so as to bring down product prices and inflate profits as much as possible.

Imperialism/neo-colonialism doesn't exist just because corporations and rich people are greedy - there are structural causes and there is a labor aristrocracy because of the massive disparity of wealth and power that exists in the world.  The United States COULD in a highly fantastic scenario start trying to push standarsd of living in the rest of the world, but it could also distribute its surplus per capita income to help equalize incomes in the world.  But it doesn't do either - because there is power at play in geopolitics- and the best thing we could probably do as progressives is to get the u.s. to stop trying to do anything except in the most egregious of circumstances (like in Gaza).  and help americans understand they're part of a global communitty that needs to listen, rather than always speak.  Because there is no political mechanism to ensure that American politics is responsie to the poor world so what you essentially have is taxation wtihout representation, a problem that won't be solved until people will countenance things like noncitizens and members of any country the U.S. is occupying being allowed to vote in the United States elections.

Until then, what poor countries need the most is a global regime that provides them with policy autonomy - with a hands-off approach so that their political processes can operate without too much intereference.  That, in a nutshell, is why India and China are able to be "successful" developing contries in this era, whereas Pakistan and most of Latin America annd Gaza have been condemned to having their entire polities and societies destroyed by various foreign powers, from Britain to the United  States to the Soviet Union.


what you said - (0.00 / 0)
Until then, what poor countries need the most is a global regime that provides them with policy autonomy - with a hands-off approach so that their political processes can operate without too much intereference.


[ Parent ]
I'm glad to see somebody calling out Kristof on his sociopathy (4.00 / 1)
Apologists for slavery once argued that black people were  better off housed and fed by their masters than they would be as free people, starving in the wilderness or prostituting themselves on the streets of Richmond. This kind of humanitarian paternalism is typical of the people in charge.  

Erm... (4.00 / 1)
One of the great untold American stories is the massive unemployment former slaves suffered after the abolition of slavery.

A lot of them were re-hired by their former slave owners, sometimes for less than they made as slaves.

Education is the only solution.  


[ Parent ]
i assume from the troll rating and your lack of responsse that you can't. thanks for confirming. (0.00 / 0)
have a nice day.

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