In Reply To Sweatshop Sophistries

This article first demonstrates that wages and working conditions are interrelated and that economists are correct to analyze them together. It then examines the four economic mechanisms which Arnold and Hartman (2006) suggested could overturn the traditional economic view that raising wages in sweatshops would unemploy workers. It is shown that their mechanisms fail to achieve their purpose. Finally cautions are given against suggested reforms such as industry wide ethical standards and adherence to local labor laws because these reforms would negatively impact workers' welfare.