Cheap Labor Essay

1002 Words Jul 22nd, 2008 5 Pages
Cheap Labor
Economic growth has always been the greatest interest of the world. Any studies and researches are done to improve the economy of Third World Countries. Unemployment rate and underpaid cheap labor is a big problem that the most of the Third World Countries face today in our global village. Unemployment rate of a nation affects the affordable living of local people because they are not able to afford healthcare, education, and proper housing for their family. Being unable to afford healthcare, education and housing, would negatively affect condition of the employees to perform their task at work efficiently. Furthermore, it would not ensure the upbringing of the children to be the leaders of next generation. Due to the high
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Minimum wages do reduce inequality by altering the income distribution and equalizing wages across ages and genders. Did you know in most poor households no one is employed in a regular job? In the other hand many low earners have well paid. Workers in rich countries complain that cheap labors imports from countries such as China, India, Korea, and Malaysia are costing them their jobs, leading to unemployment and low real wages. The idea that their wages are being set in third countries in a relentless race to the bottom. Since the U.S has a less inclusive and much less generous welfare state than Europe, and is also relatively more open to imports from the other countries in South. This is a straightforward demand and supply model, however disagree about the reasons for the fall in demand for unskilled and the rise in that for skilled workers. Attributing largely to trade with low wage developing countries. People still buy and do social activities with their minimum wage payroll. Soon or later government will need to increase minimum wage for people to live. Currently
World gas price has increase dramatically. In Asia or European countries gas price reached up to five dollar per gallon. In Korea their minimum wage is $2.50 and most people have a car to fill with gasoline every one or two weeks. How can poor people afford to live under these circumstances? That is why Korea had IMF during late 1998.
They have earned

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