BUSINESS - RACE TO THE BOTTOM CONTINUES AS CHINA WAGES RISE
Fortune magazine reports that with China's wages and environmental standards gradually rise, corporations are now looking to move their outsourcing operations to countries where conditions are even more desperate. "China's actions to strengthen its environmental and worker protections are unquestionably good moves for the country, its people, and the global economy," writes the magazine. "But for outsourcers focused on rock-bottom production prices, the search is on for new low-cost countries."
Of course, this race-to-the-bottom dynamic is encouraged by a standards-free U.S. trade policy that allows companies to troll the world for the worst conditions, exploit those conditions, and sell the products of that exploitation back into the American market. Put another way, our trade policy is helping foreign governments manufacture comparative advantages out of their horrific labor, environmental and human rights records.
Marx continues to be right.