The Implementation Of Neoliberal Policies

Sweatshops a big issue in today’s society, even though their existence can sometimes stay hidden from the public’s eye. A famous author named Berry states, “ most of us get all the things we need by buying them and most of us know only vaguely, if at all, where those things came from; and most of us know not at all what damage is involved in their production. We are almost entirely dependent on an economy of which we are almost entirely ignorant.” The majority of people in the US have no idea where the clothes they are purchasing are actually coming from. Most people would not support the exploitation of their own race of people. If they were able to see and come to realization about what is actually happening they would have a much different change of heart.

Economics is based on several theories, whether it is neoliberalism or the welfare state. Neoliberalism and the welfare state are opposite beliefs that have been introduced to help the United States economy. Neoliberalism has a key goal of improving the well-being of society while encouraging a ‘free market’ economy. Similar to neoliberalism, the welfare state is a concept in which the state is supposed to protect and promote the well-being of society, socially and economically. A welfare state can occur in a neoliberal state. When the welfare state is used, then neoliberals believe an abuse of power is occurring. While the welfare state can occur in a neoliberal state, the role of the government should be limited to allow for a free market.

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

It is impossible to beat a cheap price. In today’s world, finding a sought after item at a dirt cheap price is one the main motivation American’s get in the car and battle the craziness in the mall. And as the basic American human beings that we are, it is never possible for us to be complacent with the amount of stuff we currently have. Eventually, we will come across a friend that has the next must have item that will cause us to run to our local mall and purchase a similar item at the lowest price possible. With all that said, it is no wonder why the industry of fast fashion has taken off over the past decade. Felipe Caro and Victor Martínez-de-Albéniz, researchers for UCLA’s school of supply chain coordination, define fast fashion as “a business model that combines four elements: (i) fashionable clothes mostly for consumers under 40; (ii) affordable prices in the mid-to-low range; (iii) quick response; and (iv) frequent assortment changes”. Retailers like H&M, Forever 21, Target, and Wal-Mart have been able to take this business model and make a fortune. But while all these quick trends and cheap prices are great for the consumer, its cost on the foreign worker and the environment does not go uncovered. In the book Overdressed by Elizabeth Cline, she presents many arguments supporting the claim that fast fashion is unethical based on

Although globalization allows for most products to be produced at a more efficient rate, it also has the capability to mar the economies of municipalities in first world countries. In Pietra Rivoli’s book The Travels of a T-Shirt in the Global Economy, she discusses the different viewpoints of opposing sides of an on-going battle to reduce the amount of tariffs and quotas put on the textile industries of foreign countries. For decades the textile industry in America has been on a noticeable decline, with outsourcing to third-world countries to blame. Although both faction’s viewpoints on the benefits of such outsourcing, both realize that there is only one way to gain the results they seek; which is to petition to the congressmen, including high ranking officials such as the president, in Washington D.C.

Manufacturing factories in Asian countries are commonly referred to as “sweatshops” in the western world. They are infamous for their low wages, brutal treatment, and dangerous conditions. They tend to be popular in low income, disheveled, poverty stricken areas. These factories make countless products for the western world, especially for its fashion industry, which is rapidly increasing and changing. Andrew Morgan, director of the documentary The True Cost, advocates for the injustices occurring in factories overseas by exposing the harsh reality of these sweatshops in an effective manner, but at the end of the day, his work has no tangible impact on those most affected by the fast fashion industry.

The next part of the story was about globalization, which aims to protect the influence of trade barriers outside the country. Therefore, the metaphorical T-short briefly captured a glimpse of El Salvador, Bolivia, the United States, China, Cambodia, and other countries. Although for the reasons of fairness, the author really just wanted to introduce in more depth the economic and trade realities brought about by the globalization of the textile industry. After all, Rivoli is an economist; data, statistical data, and other large researches that have support the story from paragraph to paragraph, and being some of the most surprising conclusion. Among them, the first and most important point is that, as for as the new clothing industry is concerned, this kind of trade is not as least completely free. However, the most enjoyable thing is the T-shirts have taken a step further, and the story of second-hand clothing was brought to

The producers in the new T-shirt value chain do not operate in a free market system. Government protectionist measures such as subsidies, quotas, and tariffs have limited economic success to a fortunate few. According to the author Pietra Rivoli, “the winners at various stages of my T-shirt’s life are adept not so much at competing in markets but at avoiding them.” These winners include the U.S. cotton farmer and the China apparel industry. Their market dominance and profitability have benefitted significantly from the political prowess of their government to limit competition.

I think it also works to undo the notions that China was stealing away all our jobs in the apparel arena, because despite the complex protectionist measures taken, America still lost lots of jobs in the textile industry. The author points out that this is because of technology, and that when it really comes down to it, China is losing their textile jobs at a rate faster than the U.S. did (142). She also goes over some of the unintended consequences of the measures such as increased material costs as a result of the increased import barrier (142). She also suggests in this section as an alternative to erecting trade barriers, to instead compensate workers of the losing industries, known as the compensation principle (151). Lastly, with the lift of the measures and quotas by 2005, there will be a new surge in Chinese goods to America, as illustrated in figure 9.1, page 167. China’s percent increase after release from the quotas will measure some 900%.

‘Neo liberalism is responsible for most of the global economic problems we are experiencing today’

promoted a half way approach to liberal ideas while they incorporated parts of a social

The global textile and apparel industry is now considered a significant industry with a network of members settled in many countries including developed and developing countries. This industry is one of the first industries taking the global dimension into account to create its global value chain since the rapid expansion in 1970s (Fernandez-Stark, Frederick and Gereffi, 2011). Since the early development of the apparel industry and even until now, this industry is an adequate solution for the economic development and the starting point for many countries who direct to an export-oriented economy because of its low fixed costs and the emphasis on labor-intensive production. The export growth in some East Asia nations thanks to their advanced apparel industry is a good illustration for this situation (Gereffi and Memedovic, 2003).

Proximity also mattered because it reduced shipping costs and lags, and because poorer neighbors sometimes benefited from trade concessions. While China became an export powerhouse across the board, greater regionalization was the dominant motif of changes in the apparel trade in the 1990s. Turkey, North Africa, and sundry Eastern European countries emerged as major suppliers to the European Union; Mexico and the Caribbean Basin as major suppliers to the United States; and China as the dominant supplier to Japan (where there were no quotas to restrict imports).3 World trade in apparel and textiles continued to be regulated by the Multi-Fiber Arrangement (MFA), which had restricted imports into certain markets (basically the United States, Canada, and Western Europe) since 1974. Two decades later, agreement was reached to phase out the MFA’s quota system by 2005, and to further reduce tariffs (which averaged 7% to 9% in the major markets). As of 2002, some warned that the transition to the post-MFA world could prove enormously disruptive for suppliers in many exporting and importing countries, and might even ignite demands for “managed trade.” There was also

(B. Kamiński 225). However, the package was met with a flurry of criticism from prominent economists and journalists. Echoing the key principles of neoliberalism, the economist Tomasz Jeziorański argued that the principal weakness of the package consisted in granting the full responsibility for economic performance to the central administration. The free enterprise characterized by responsibility and autonomy, he insisted, was incompatible with economic coercion by the state (B. Kamiński 226). As a consequence of protests of similar nature, the government eventually withdrew the package in question from further consideration.

market with low cost mass produced apparel. Exports from India and China have grown over 100% with the expiration of the MFA whilst other countries such Sri Lanka and Pakistan have seen a loss of market share in terms of volume traded. (Christoph, Alfons Hernández, & Daan, 2005). MAS Holdings Ltd (MAS) one of the largest apparel manufacturers is faced with this intense global competition and a constellation of other issues. The macro-economic