Cheap labor debate

Many individuals have different views on the aspect of Cheap labor debate with disregard and disrespect in most of the cases. For example, we find the authors of “sweatshops” that is Norman Bowie and Dennis Arnold have a belief that multinational enterprises are responsible for some objectives. The paper, therefore, is an essay that will base its discussion on the aspect of Cheap labor debate. The paper will mainly give more details on the issue of Cheap labor by giving the importance of cheap labor, especially to the economy. Also, the paper will be on the supporting side by giving as much reasons as to why cheap labor is of much importance.

From most of the research carried out in most of the countries, we find that the aspect of cheap labor in broader perspective has numerous advantages as compared to the disadvantages. Cheap labor has been found suitable for the economy in that cheap labor helps in decreasing the price of goods that are produced within the economy of the respective countries that are exercising or rather practicing this concept. The other aspect that makes cheap labor more valuable is that the prices of goods are reduced to suit the standards of living of the citizens in that goods will be sold at lower prices. Hence, more people will have the chance of purchasing more goods hence a boost to the economy.

Still in the aspect of economy companies or rather industries by using fewer expenses in labor, they will realize more profit in that more goods will be produced as anticipated by the companies. For this case, we find that as the company invests less on labor more goods will be circulating in the market which will also lead to a high increase in employees’ salaries that enhances more buying and a cycle of endless economic success would be realized.

Additionally, the aspect of cheap labor also has an added advantage in that it allows citizens to work if they feel like doing so. For this case the person has no excuse for not going to work if they want in that everyone can get work at any time will have herself or himself a job and work. Hence, it is considered good for the economy.

On the other hand, the aspect of cheap labor to some extent if not applied as anticipated would lead to adverse impacts on the economy in that it will cause some effects on taxpayers and this would result in the fall of the economy of the particular country. The best example that has been realized is of fast food workers many of which qualifies for food stamps. Hence, some individuals would not understand its impacts in a broader perspective.


From the Cheap labor debate, we get that numerous advantages makes it of more importance to the economy. For example, implementation of the aspect of cheap labor in the economy would lead to more production of goods which most likely will be sold at reasonable and low prices hence, more people would get to purchase themselves the goods in large numbers. Buying in large numbers means that the business becomes lucrative which goes hand in hand with the accrual of large profits by the company. Therefore, it is of much importance to take into account the aspect of cheap labor in that there will be a consistent flow of cash in the economy hence it becomes more stable as compared to other countries’ economy which has not implemented cheap labor into their economy.

Work cited

Safa, H. I. (2008). Runaway shops and countries economy: The search for cheap labor. Signs, 418-433.

Krugman, P. (2007). In praise of cheap labor. Slate. March, 20.

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