World Views

[Brian Fein]

I love widgets!

[JVides]

There's a simple way around this.
What about contract labor?  Here at Motorola, we have contractual agreements with Chinese companies who build our products.  They're even getting into designing our products.  These companies are not US- corporations, thus cannot be regulated by any US lawmaking body.  So, great, Motorola has to pay the people in their Tanjin factory a minimum amount, but the contract manufaturers can still pay their people a quarter an hour.  All that's going to do is cost more people (in this case, Chinese people) their jobs, as more work will go to the contract manufacturer.
Does the point really get across?

You're right.  There's always a loophole.  I'd bet the contractor would not charge Motorola "cost" for manufacturing labor, though it would still be cheaper, no doubt.  This is why I mentioned "nexus" laws that perhaps penalize foreign corporations with substantial U.S. source income for not paying fair wages.  Again, something like this would work best if most of the "industrialized" nations agreed to pass similar laws.

[run_to_win]

Many countries are poor due to corrupt governments - Mexico is a great example.  If we force American companies to pay Mexican workers more there's a good chance that we'll just be enriching the government.

[JVides]

JVides, Have you taken an economics class?  Because if you haven't, I think you might enjoy it.  It sounds like you have some interest

I have.  I'm an accountant, so it was required.  While I admit to having no great "in depth knowledge" of econimics, I do understand the supply-demand curve, and your previous post regarding its relevance.  I understand my concept is simplistic, but I've thought about this independently, without aid of a feasibility commission...

[JVides]

Many countries are poor due to corrupt governments - Mexico is a great example

That's hardly the sole reason Mexico is poor.  Corruption is alive and well in all governments, ours included, and we're rich and powerful.  Mexico is poor because it lacks resources, is under-educated, and relies on tourism (which is highly competitive and subject to people's whims) and agriculture (a very low value-added business) for a large part of its economy.

[Dave Gray]

Point taken. But, we are not just taking about widgets or one single product that would be affected. I wouldn't care if I had to pay 2 bucks extra on one thing, but its the cummlative effect that matters. Paying 2 bucks extra on everything I buy overseas from current low wage countries would really hurt. The American consumer (and the politicians in DC that need their vote) would not tolerate it.

This is true, but we need to make better decisions as consumers and not be willing to pay $150 for Nikes....buy their equally good competition for $100.  (I'm just making an example)  We are a country of excesses, because we're in a position to be.

And gas is a good example.  Look how much hybrid and alternative fuel source cars have come forward in the last few years...we have changed, because the gas price was really high.