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Out of Poverty: Sweatshops in the Global Economy (Cambridge Studies in Economics, Choice, and Society)
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- ISBN-101107688930
- ISBN-13978-1107688933
- PublisherCambridge University Press
- Publication dateMarch 10, 2014
- LanguageEnglish
- Dimensions5.99 x 0.5 x 9.02 inches
- Print length198 pages
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Editorial Reviews
Review
William Easterly, Co-Director of the Development Research Institute, New York University, and author of The White Man's Burden and The Elusive Quest for Growth
"Ben Powell has written a brilliant and thought-provoking book on sweatshops. He challenges a number of critical beliefs about them which, although springing from concern about the poor, lead to policies that will harm the poor. No policymakers, especially in aid and development agencies like USAID and UNDP, can afford to ignore this masterly book."
Jagdish Bhagwati, Columbia University, and author of In Defense of Globalization
"The term 'sweatshops' is a dirty word to students on American campuses and activists around the world, implying exploited workers toiling in horrible conditions for long hours at low pay. Powell's splendid new book gives us another perspective: how workers view sweatshops as an opportunity for improving their economic condition. Indeed, countless Americans, Japanese, and others enjoy their high standard of today living because their grandmothers and grandfathers worked in sweatshops a century ago."
Douglas Irwin, Dartmouth College, and author of Free Trade Under Fire
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- Publisher : Cambridge University Press (March 10, 2014)
- Language : English
- Paperback : 198 pages
- ISBN-10 : 1107688930
- ISBN-13 : 978-1107688933
- Item Weight : 11.3 ounces
- Dimensions : 5.99 x 0.5 x 9.02 inches
- Best Sellers Rank: #1,339,588 in Books (See Top 100 in Books)
- #748 in Labor & Industrial Relations (Books)
- #889 in Labor & Industrial Economic Relations (Books)
- #3,900 in Political Science (Books)
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The book shows graphically how far an advocate of Free Market Economics will go to hide the brutality of the Free Market and the ingrained insensiivity to inhuman conditions of employment and personal suffering. It is clear from this book that, once an economic bias takes hold, someone like Benjamin Powell will go to any lengths to justify the victims of that bias,.
The book reminds me of the attempts of King Leopold II of Belgium, at the turn of the 20th century, to prove to Europe, America and the Catholic Church that massive slave labor in Belgium Congo did not exist and that the claim was the plot of Protestant missionaries to undermine and discredit the work of Catholic missionaries in the Congo. Five million African slaves died under Belgium's inhumanity - and Leopold and Belgium became rich in the process.
Benjamin Powell is well-known for his association with the Acton Institute, and as an advocate of Austrian Economics, which emerged in Austria after the collapse of the Austro-Humgarian Empire. It was a mild attempt to create an aristocracy of moneyed entrepreneurs to replace the aristocracy of blood. It failed in Austria and so was transplanted to the United States in the persons of Ludwig von Mises and Friedrich Hayek.
That torch was taken up by the Acton Institute in the person of Father Robert Sirico - and a host of others - in 1991 to establish a moneyed aristocracy in the United States under the flag of "Free Market Economics" - - which is 'free" only for the Free Marketeers themselves. They are not happy with the Capitalism regulated by law (and Supreme Court mandate) in these United States. This book by Benjamin Powell is an extension of their Free Market Economics to the Third World, where the effects of a Free Market have kept millions in poverty and social degradation - sometimes little more than slaves of their economic masters.
Shantytowns and sweatshops are not steps on the way to progress. They are the evil and cruel effects of Free Market Economics, vividly portrayed in a recent book called "Breaker Boys"
by Michael Burgan. An even more vivid portrait is " How the Other Half Lives" by Jacob Riis, recently re-published.
Notice the sub-title: "Sweatshops in the Global Economy", with "statistics" to "prove" that sweatshops work for the financial advantage of the workers and that the sweatshops existence is a benefit to those caught in its tentacles. It sounds like Marx and Lenin vaunting the advantages of life under economic determinism - "advantages" often ending in the gulag,.
""Out of Poverty" is a disgrace to the Science of Economics, and the politics that go with it. Sweatshops have never improved the economic condition of anyone, as any visitor to underdeveloped countries know. "Don';t Cry For Me, Argentina" is not the theme song of the liberated poor from the shackles of poverty and social helplessness. We all know where that cry is coming from and the sheer inhumanity and cruelty of that period of Argentine history.
By this book, Benjamin Powell joins the company of Simon Legree and the cast of characters in Charles Dickens' "Oliver Twist", "Hard Times" and Nicholas Nickleby". Sweatshops serve the economy of the entrepreneurs who run them and no amount of Austrian Economics will give respectability to one of the most massive social evils to inflict developing nations. It's a rich man's plaint on the poverty of sweatshops, giving them a twist that makes him comfortable with his own pocketbook.
Father Clifford Stevens
Archdiocese of Omaha
Both sweatshop proponents and critics have the same end in mind – the raising of living standards, better working conditions, and a reduction in poverty. The difference is that critics generally operate on the surface level and favor short-term ‘solutions’ that feel good, but do more harm to the people they purport to help – and can even impede the economic progress of an entire country.
As Powell points out, economic development is happening at a faster pace, meaning that it does not take as long for a country to see a dramatic increase in living standards as it once did – as long as the process is allowed to develop naturally. Artificial measures, such as regulations that set back economic freedom, do more harm than good. Eventually they would become superfluous anyway, as happened in the West.
It does no good to pretend that proponents of sweatshops are evil people unconcerned with the welfare of workers. The reality is that they have simply thought deeper about the issue, know what works, and have the courage to say so.
If economics is the dismal science this book gets to the heart of it: the limitation of natural and unnatural scarcity by conditions outside of our direct control. Empirical research into these areas exposes us to the rampant poverty they many are very conformable not knowing about. But realism is necessary to those that wish to make improvements to the world.
The economic analysis is sharp and nuanced, it is not generalized. It does not overstate and say what can not be said without complete accuracy.
This book is short and concise and could be beneficial to both to critics and advocates of free markets. It is careful to explain why and how things work even to the point of getting into the intrinsic ways markets work and coordinate.
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Powell's argument is simple: workers cannot earn more than the value of what they produce, and workers will choose the best option available to them. Those who campaign or criticise this are either economically illiterate activists or sneaky trade unions trying to stop jobs going to the Third World.
Unfortunately Powell never goes beyond simple free market arguments and despite at various points distancing himself from the simplicity of homo economicus, he makes plenty of unrealistic assumptions about competitive markets, information asymmetries, bargaining power, etc. He fails to explore complexities of development nor the potential of multilateral coordination, instead taking easy aim at campaigns that target indivdual companies or sweatshops.
There are undoubtedly concepts in this book that anti-sweatshop activists and others would benefit from learning, to ensure they appreciate the contexts and conditions within which sweatshops operate and avoid doing harm to the people they're trying to help. But I suspect they can find better and more thoughtful books out there on the subject than this one.









