Capitalism Against Capitalists
The New York Times brings us once again to Foxconn and China’s manufacturing industry, in a story reporting that “there is a growing shortage of blue-collar workers willing to work in China’s factories.” This, we are told, is “a big factor in the long shifts and workweeks manufacturers have used to meet production quotas.”
The implied model of the labor market here is a strange one indeed. If an important input to production — in this case, workers — is scarce, economic theory suggests that its price will be bid upward. That would mean some combination of higher wages, shorter hours, and better working conditions. Instead, we are supposed to find it logical that a shortage of workers causes bosses to work their employees harder.
In what seems to be something of a pattern in NYT labor reporting, the giveaway line is saved for the last paragraph. “It’s hard to find a good job,” says a young Chinese worker. “It’s easy to find just any job.” The entire story is now revealed to be a slightly more orientalist version of a US media standby, in which capitalists whine about being forced to offer competitive wages and working conditions. Dean Baker never tires of lampooning these stories, which credulous reporters continually trot out as an explanation for high unemployment.