Nevertheless, I totally agree with you—and probably should have made it more explicit—that the idea of children working in “sweatshop-like” conditions is deplorable. For that matter, it is inhumane for anyone to work in that type of environment. Western companies must rigorously enforce and audit their suppliers to root out those who are mistreating their workers.

Having said that, we must appreciate the fact that the wages that the “tennis shoe” workers receive are helping to bring many people out of poverty and into the middle class. As long as working conditions in the factory are humane, the right thing to do may be to refrain from imposing our moral standards on a developing country, relegating the child to scrounging in the local dump.

But while child labor is unfortunately necessary to the survival of many families in the developing world, I don’t think that gives Western companies a carte blanche to exploit such a reality in order to create a cheaper tennis shoe. These corporations are not simply hiring younger workers; they are often employing them in conditions that are downright inhumane. When Americans or Europeans are outraged to discover that Nike or Ikea employs children in its factories abroad, I think it is more about the sweatshop-like environments rather than the young ages of the employees alone. Perhaps that is why Nike has been able to repair its image somewhat by providing its child employees with food and education.

Moreover, I don’t think labor practices during the Industrial Revolution absolve 21st century Western companies from applying modern standards to their employees, whether they live in the U.S. or China. As Americans, are we really being hypocritical to be outraged by inhumane working conditions in American-owned factories in Vietnam or Bangladesh simply because similar practices were once employed here? Could we not be righteously outraged by modern-day slavery, or by a foreign government that denies women the right to vote? I am not arguing that Western governments should forcefully intervene in foreign countries that do not share our values or our laws. But I think that it’s cynical to say that major corporations can exploit a lack of labor laws in developing countries without any ethical trespass.

So while I believe that there are certain situations in which Western companies can employ children in developing countries ethically, I think that it’s something that must be done with the utmost consideration and care.

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I also agree with your statement that the gap is narrowing. In some cases—when looking at total costs—the argument for back sourcing work to the U.S. does makes economic sense. Also, you make a compelling argument about the possibility that offshore suppliers will cut corners if the big box retailers push pack on price increases.

Re: your comparison of labor costs at GE vs China – there are a few other factors to consider into the equation:

Freight costs – that is getting the finished goods from China to the US.
Duty/Tariff fees – the tax the Fed Govt puts on different types of imported products.

For small appliances – eg toasters – freight might cost $2 per unit. On larger appliances like a refrigerator – it might be $20.

Duty varies but could be 5% of the product value. If a toaster costs $10 in China that adds $.50. If a fridge costs $300, that adds $15.

I’m sure there are other govt incentives – tax breaks or credits – that are also sweetening the pot to add the jobs here.

And while these costs don’t fully make up the dramatic labor cost difference, they do narrow the gap – and make it economically viable for a large co. like GE to make a “political” choice to bring a smattering of jobs back to the US.

Where these rising Chinese labor costs will make a bigger impact is in lower cost/retail goods. Manufacturers and importers will look to pass these cost increases along to the retailers and ultimately the consumers. If however, Walmart or other large retailers resist these cost increases, manufacturers will instead start cutting corners on the materials and/or quality control of these goods.

So while you may still get a pair of scissors of a small toy for $3, don’t expect it to last very long before breaking.

Welcome to the New America!

Also, I can relate to your experience in finding the “best” laundry. We have a 10 year-old Honda, Odyssey that has been serviced by the same Honda dealer for all those years. My wife has developed a personal relationship with one of the customer service managers. When she calls, he will do everything within his power to accommodate her requests. When it comes time to buy a new car, we plan to buy it from that dealer, because of the high level of customer service provided.