Economics @ ITT

Pakistan factory fires kill at least 261

Posted in economics, employment, externalities, Policy Issues by ittecon on September 12, 2012

The only reason this does not happen in the United States very often is that the price of labour is too high. If Conservatives had their way, there would be no minimum wage;  they would drive wages down to pennies an hour, there would be no right to healthcare, unemployment, collective bargaining, file a grievance, and a laundry list of other societal ills.

“You have strikes, load shedding [power outages], local mafias charging you turf protection money — you name it,” Ahmad said. “Plus you have ruthless buyers sitting in the U.S. who dont care what you do, as long as you do it on time … we take a hit every time were late. That means lost margins. That means we do what we need to do to make our orders, fast. This factory owner may have been working extra shifts just for that purpose.” 

This is what unregulated free markets do.

via We were trapped inside: Pakistan factory fires kill at least 261 – World News.

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