Corporations in 3rd world countries pay on average 500-800% of the income people are making there. These companies build factories there because they can pay less for labor than they would in America, meaning they in turn can charge lower prices, and sell more. By the same token, the workers who work in them don't do so to help the company, but because it's 5-8 times the money they would make at the next best alternative.
Voluntarily entered agreement to mutual benefit...the alternative is to take the Susan Sarandon approach (that is, legislate the jobs there out of existence..."better they starve"). The entire reason a company would go halfway across the world is because it's cheaper...using government Force to Coerce people into paying American wages will not mean the people there will be making more money...the companies simply won't build plants there (how could they afford to pay more for wages and for shipping? and why would any person do that?)
Bottom line, companies do not exist to provide jobs and wages. Wal-Mart does not sell bread to me for $X because I want it for that price...they offer it because the $X is more valuable to them than the bread. By the same token, I don't exist to provide income to Wal-Mart. I don't shop at Wal-Mart because it needs my money...I buy the bread because I value the bread more than my $X. But at the end of the day, each of us can only OFFER the other our property...neither can coerce the other; we each have the power to refuse the deal and walk away.
The situation is no different in India. A company can show up and build a factory, open the doors, and OFFER to pay people X. If X is worth more than their labor (which it surely will be if it's 5-8 times more than they're making now), they may choose to accept the deal. Just as the company has no right to Force people to work for them (or to order them to work under certain conditions), the individuals have no right to Force the company to hire them or employ them under certain conditions.
(As a side note, whenever a company opens a new factory over there, people typically beat down the doors to get such "low paying" jobs...they offer bribes to the employers, offer to pay their first month's salary in return for securing a job for a family member, etc. What we consider low paying here is actually an opportunity few of them would ever see, as it is more than any other place there pays them.)
The fact that even the "poor" in America on average own clothes, radios, TVs, at least 1 CAR, phones, air conditioning, a dishwasher, and a multitude of other conveniences that the "better off" in countries can only dream of owning is the result of (semi) Free, unCoerced interaction with one another...and corporations are an incredibly efficient way for entrepreneurs to team together and invest capital to create more products, wealth, and job opportunities than anything else in all of history.
www.capmag.com if you want to learn about Freedom and Individual Rights (which go hand in hand)
Prices shown in USD.
Log in with Facebook to save your favorite definitions
and share them with friends.
Type your email address below to get our free Urban Word of the Day every morning!
Emails are sent from firstname.lastname@example.org. We'll never spam you.