Prof. says sweatshop labor aids economies

Are sweatshops actually helping third-world garment workers?

Drawing parallels between 19th Century America and current conditions in impoverished nations, Ohio University economics Prof. Richard Vedder addressed this question last night in front of more than 50 students in the Anderson Room of the Michigan Union.

"The so-called sweatshops are an integral part of economic well-being," Vedder said, pointing out that, historically, almost every nation makes a transition from an agriculture-based economy to a manufacture-based economy.

"In time, these (third-world) nations will develop into wealthier nations," Vedder said. "The sweatshop of yesterday has produced the prosperous economy of today," he said.

During the early 19th Century in the United States, Vedder said, after adjusting the figure for inflation, textile workers made 40 cents per hour and worked 12 hours per day. The median age of a typical worker was 16, Vedder said. These workers, who were mostly women, lived in conditions similar to those experienced by many third-world workers today.

"These New England sweatshops led to a higher standard of living," Vedder said.

He explained that the estimated wage of today's sweatshop workers is 50 cents per hour, more than the typical wage of 19th Century U.S. workers as calculated after adjusting for inflation. In both modern and 19th Century sweatshops, many circumstances are the same, Vedder said, explaining that, like in the early 19th Century, people today flock to the factories and no one is forced into labor. Workers come willingly, he said.

Trade involves gains on both sides, Vedder said, and it is insulting to assume that Americans should have the authority to impose economic ideals on countries thousands of miles away.

"Isn't it a bit arrogant on our side to assume these nations aren't humane enough to their own people?" he said.

Oftentimes, Vedder said, labor groups prey on naive college students with tales of inhumane treatment. In reality, he said, sweatshops have brought prosperity to growing nations throughout history.

College Libertarians and Students Promoting Export-oriented Economic Development sponsored the event.

"He has a perspective that isn't heard very often on campus. So in the interest of promoting political debate, we were very interested in having him here," said Rackham student Charles Goodman, president of SPEED and co-chair of the College Libertarians.

"Free trade is a basic Libertarian ideal," LSA senior Gabriel Quinnan said. Quinnan also chairs the College Libertarians.

Vedder's opinions sparked lively debate amongst audience members. They asked questions regarding what role organized labor played in raising the standard of living in the 19th Century.

Other audience members said Nike is earning exploitive profits and could afford easily to raise the wage of its overseas employees.

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