Question

10. A representative of the American clothing industry recently made the following statement: "Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more produc- tive and as a result earn higher wages. In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing.” a. Which parts of this quote are positive statements? Which parts are normative statements? b. Is the policy that is being advocated consistent with the preceding statements about the wages and pro- ductivities of American and Asian workers? c. Would such a policy make some Americans better off without making any other Americans worse off? That is, would this policy be efficient from the view- point of all Americans? d. Would low-wage Asian workers benefit from or be hurt by such a policy? To S ir lo

Answer 1

a.Positive statements are:

American workers are more productive .

They earn more wages

Normative statements are:

American workers' dignity needs to be maintained

Hence their products should be encouraged , by banning low-cost Asian clothing.

b. NO.

By banning Asian clothing , this policy is inconsistent with Asian workers' productivity & their wages.Preserving dignity of one sect of workers , infringes upon lowering or letting down , of another sect of workers.

c.This policy will not be efficient for all Americans, as those Americans who are not as affordable as others might not be able to buy the lower-costed imported Asian clothing.

d. Low-wage Asian workers will be adversely affected due to such a policy of banning imports Asian clothing , as market for their end product will decrease, affecting the demand as well as production and consequent lay-offs of workers, even more , or to work for even-too-low wages.