More and more economists preach that sweatshops actually improve the standard of living of those living in third world countries by creating a demand for employees. Paying low wages creates demand for labor and allows companies to increase profits. The increased demand for laborers forces companies who are seeking the best labour for their factories to give better wages and working conditions. However in reality, this is certainly not the case.
In actuality, as soon as workers can demand for better wages and conditions, companies pack up and ship off to the next country. In other countries where people are worse off and desperate to work. As follows, they can continue to pay minimum labor while the previous country sweatshop employees are once again jobless and poor.
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