Re: Capitalism 101: was Re: Terror Kids...

From: Wei Dai (weidai@eskimo.com)
Date: Wed Apr 10 2002 - 10:58:08 MDT


On Tue, Apr 09, 2002 at 07:50:21PM -0500, Lee Daniel Crocker wrote:
> It is my personal opinion that both prison labor as practiced in
> China (where most prisoners are confined without even the most
> basic rights to a fair trial),

The issue here is the lack of fair trials rather than prison labor
(which exists in the U.S. as well). Even though it has very far to go, I
think China is improving on that front. Here's a quote from Amnesty
International's 2001 report on China:

Although implementation of the law continued to be arbitrary in many
cases, the government renewed efforts to encourage implementation of 1997
legal changes, including some aimed at improving the fairness of trials.
Further legal reform was debated with reference to international human
rights treaties which China had signed but not yet ratified. In November,
the government signed a Memorandum of Understanding with the UN High
Commissioner for Human Rights, designed to set up a program of technical
cooperation in the field of human rights.

> and widespread child labor by children
> far too young to give meaningful consent,

Presumably their parents consented because all of the other available
choices are even worse. I don't see how you can solve this problem except
by making China wealthier.

> and even some "free"
> laborers in the government-planned economy are essentially slaves,

What "free" laborers?

> and I further believe that most of the money received from abroad
> for Chinese goods goes to support the government, not independent
> businessmen.

Do you really think China's export industry can be competitive if that
were true?

> I understand that no country is blameless here: even
> American businessmen have to deal with heavy regulation and taxation
> when they deal abroad; but their profits are still /their/ profits,
> and benefit theith employees and shareholders. I believe that China
> does not rise to even the most basic level of civilized, free, and
> open society, and until they show some basic respect for human rights
> I will avoid sending my money there.

I guess you don't agree with the libertarian analysis that shows trade
improves human rights. Please take a look at
http://www.cato.org/dailys/11-15-96.html and
http://www.mises.org/freemarket_detail.asp?control=119, and let me know
why you disagree with them. I think this paragraph from the Cato article
is especially relevent:

Finally, a positive program should recognize that free markets foster
economic development and provide individuals with the means to liberate
themselves from the state. A growing middle class will have a strong
economic stake in determining their own political fate. As Taiwan's newly
elected President Lee Teng-hui stated, "Vigorous economic development
leads to independent thinking. People hope to be able to fully satisfy
their free will and see their rights fully protected. And then demand
ensues for political reform."



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