Do Sweatshops Help or Hurt the Economy - Research Paper Example

Do Sweatshops Help or Hurt the Economy? The debate about sweat shops is still in progress. A sweatshop is a negative term for a working environment;a work place where working conditions are unacceptable or dangerous for any human by any standards (Sweatshop). But are they good or bad for the Economy? It depends on their use. Looking at a poor third world country makes it quite clear that they are in dire need of assistance in terms economic assistance (Kristoff). And what better way to elevate financials by employing them.

Sweatshops help their country’s economy. The problem is in the perception of multinational corporates (Kristoff). When companies outsource only to maximize profits, brings in the problem. There are very loose regulations in the third world countries so rights of employees get easily abused. Firms (good at outsourcing) have minimal regards for working conditions (Kristoff). They maximize profits by making people work overtime. They also pay those low wages to cut cost. So the outsourcing is not the issue but regulation is.

Sweatshops are not bad by themselves (Book Rags, Student's Essay on the Good and Bad of Sweat Shops). They help the local people and help in uplifting the economy of the poor country. And play a major part in contributing to GDP. Global outsourcing situation is improving (Wikipedia, Nike Sweat Shops). Companies like Nike are now more careful in following regulations. And this helps in increasing wages. Proper setting and application of laws can bring end to all the criticism of outsourcing. People in Vietnam and Philippines are now earning better lively hood (Book Rags, Student's Essay on the Good and Bad of Sweat Shops).

Even if they are paid in cents/hour still they cannot get even that kind of wages working for their local businesses. Besides, employed people are less inclined towards crimes. This is another example of proper regulation of sweatshops. After Nike was criticized for exploiting the poor, it had to change its working conditions (Wikipedia, Nike Sweat Shops). Now more friendly wages and ambience is established. And the result is people are pouring in at these shops for labor. According to BBC, back in 2001, 100,000 people in Bangladesh lost their livelihood when seat shops were banned (Sweatshop).

Anyone can imagine the consequences. It put a lot of burden on the Economy. People all over the world were affected by US financial crisis, even sweat shops (Sweatshop). This shows that sweatshops are linked with the economy of more stable economy. People would like to invest their skills in a more concrete economy like Europe or US. People want sweatshops! The problem is not in the sweatshops, the problem is how they are managed. As it is evident by the history of sweatshops, there have been many infringements.

Even when one sweatshop owner applies the acceptable rules and procedures his rival breaks them to get an edge and all these efforts to create a healthy global economy goes to waste (Bloomberg Businessweek). Works Cited Bloomberg Businessweek. 27 November 2006. 23 June 2011 . Book Rags, Student's Essay on the Good and Bad of Sweat Shops. n.d. 23 June 2011 . Kristoff, Nicholas D. Economist's View. 5 June 2006. 23 June 2011 . "Sweatshop." 14 June 2011. Wikipedia. 23 June 2011 . Wikipedia, Nike Sweat Shops.

16 June 2011. 23 June 2011 .