The most popular and powerful economic system occurring in most countries in the world is capitalism that has developed as a very efficient economic system, based on work, investment and savings. The role of the state in economic issues is very limited. The basic feature of capitalism is the adjustability of processes through the market. Since the core values of capitalism are self-interest, private property and free enterprise, the proper conditions for the development of large companies has been created. Corporations are big powerful companies which took over the government and are governed by their own rights.
On the one hand these corporations fill the market with products, which are supposed to fulfill our human needs. In fact they produce more goods than a man needs. On the other hand the corporations are tyrants that do not care about human beings but only about their own interests.
My question is : Why do the large corporations mainly produce goods in the east, and why do they employ young children?
Large corporations such as Nike, Reebok or Adidas have their factories in the East, and they use young children to work for them. They do not produce good in the United States, because it is not profitable. Children come from poor countries and live on the poverty line. They are starving, sick and therefore dying. They are deprived of their childhood. Exploitation and poverty make children need to mature earlier and find the job to help the family. Corporations take advantage of this fact by offering children a job. They force children to work in inhuman conditions. Children work for too many hours for very little money. These children represent cheap labour. They are exposed to the temptations of the market, but by the poverty they are deprived of opportunities to participate in it. Children are toys in the hands of large corporations.
Producing a pair of sports shoes costs around 5 dollars, when they are sold at prices ranging from 100 to 180 dollars. Children who did these shoes get only 2 dollars per day. It is not 2 dollars for every pair of shoes made, these are 2 dollars for a day of hard work, and it is known that during such a day more than one pair of shoes will be produced.
Children are first who suffer the consequences of economic inequality. Europeans and Americans wear the clothes made by little children in the east, when these children, although they produce clothes, they can not afford to buy them.
In 2001, 31 million American teenagers aged 12 to 19 have spent 155 billion on consumer durables. After 4 years 33,5 million American teenagers have spent 169 billion on consumer durables, which gives around 91 dollars per person, per week. If children in the east earn 2 dollars per day, it gives only 10 14 dollars per week, depending on how many days children work. It shows the economic differences between the second world and the third world.
Employers do not pay the same salaries people in the west and east. In the west, in more developed countries nobody would want to work for 2 dollars per day, while people in the east coming from poor countries will do anything just to earn a little money.
Cheap labour which is represented by the children in the east is very profitable for large corporations, because they pay minimum prices for production, while the profits from sales are huge, which makes corporations richer, larger and more powerful.
Branded product with a visible logo has always been an object of our desires. While buying a pair of Nike shoes we are glad, because we buy an expensive product, with a logo of this corporation. When we wear them we think we are cool, but very few of us have ever thought about who made these shoes. We do not realize that they are made by a little poor boy from the east, who works very hard for only two dollars per day.
The mixture of politics and economies can be seen in our daily lives, when the parties compete for power transceding each other with promises to increase economic growth, reduce inflation, tackle poverty and so on. The state of the economy is also important in elections, f.i. the government win elections when the economy booms and lose during recession or slumps.
Why do political questions so often boil down to economic issues ?
It may be difficult to answer this questions since everything is partially conected to economy. No change can be introduced into the country when there is no money for it. In the United States, a place, where the large corporations have their headquarters, there has occured a phenomenon of addiction of politicans from the buisness. Corporations are powerful and rich, they have a lot of money. Nowadays money makes the world go round, therefore politicans are very intrested in large corporations.
Politicans have power and corporations have money. These two things bound together give the absolute power. Politicans want to have money and power, which would enable them to improve the living standards in the country, to introduce reforms. To make people live better. Since corporations have a huge amount of cash, they have a great influence on politics. Politicans want to be in good relations with the corporations and they turn a blind eye to the things that corporations do, for exaple the exploitation of children.
Is it healthy? It is very good for politics and economy to be in harmony with each other, but politics should not concentrate only on economy. Of course money is very important in the country, but there are many things that are also important. This concentration on economy causes the economic inequality, which may be profitable for some people.