Thomas wrote:You mistake economics for accounting. (Not for the first time, I might add.) Contrary to what you imply, I am not measuring economic well-being in monetary terms alone -- and neither would any real economist. Instead, I am measuring them by the preferences third-world workers reveal when they give up their old job for their new one. In determining these preferences, people do consider any non-tangible costs and benefits there might be to switching.
Well, maybe. But then again maybe not. In general, we can expect people to sacrifice a lower-order good for a higher-order one. When a person, however, has to choose a low-wage job in order to survive, one is entitled to question whether, in that kind of situation, applying the basic economic calculus makes any sense. After all, we usually don't say that a person may "choose" starvation as a valid option. For individuals in that predicament, it's less a choice than a compulsion, so to say that they make an economic choice is somewhat deceptive. As the Athenians told the Melians a couple of millenia ago, the strong do what they will, and the weak do what they must.
Furthermore, even if third-world workers are genuinely choosing low-wage "sweatshop" jobs, rather than being compelled by circumstances to take
any job that pays a wage, we may legitimately question whether they are better off for their choice. Just because they make a choice, that doesn't mean that they make the
right choice.
Thomas wrote:But I'm curious: In your opinion, what non-monetary benefits are there to living on a garbage-dump in the Philippines, or as a loan-slave on the Bangladeshi countryside, or as a disposable concubine of some wealthy Indian land-owner? And how do these non-monetary benefits make up for the better pay in American sweatshops?
Having never been a loan slave or a disposable concubine or lived in a society where such options exist, I haven't the faintest idea. As to my living conditions, I will only say that they are somewhat more elevated than a "garbage dump" -- although my mother might disagree.
I will add, however, that, for some people, living on a garbage dump is probably preferable to living in a gutter, and being a loan slave or a disposable concubine is probably better than whatever alternative is offered to those people. Whether the alternatives are worse because they are less economically rewarding is something that I do not know, but I do know that people place a value on non-monetary goods that often lead them to make decisions that economists would regard as incomprehensible.