Consumer Alert: Sweat Shops, Globalization and Investing

Introduction

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Many of the purchases you make each day (clothes, electronics, shoes, etc.) have a direct effect on the lives of people you may never know. Not only are employers in other countries maintaining inhumane conditions for underpaid workers, news reports have disclosed that much of our food, drugs and toys are coming from China without being inspected first for safety. Lead paint and choking dangers have been discovered, plastics found in pet food and anti-freeze in toothpaste. In order to lower their production costs, American companies have chosen to transfer their factories or outsourceed their production to nations where environmental, worker and product safety standards are not enforced. In developing countries, worker injuries and exposure to toxic ingredients are widespread.

In the case of China, the growing U.S. deficit is being serviced by China, hence the F.D.A. and Consumer Products Safety Commission under the Bush Administration have turned a blind eye to trade violations for the past six years. All that began to change in March of 2007 when reports first surfaced about contaminated pet food killing pets. Suddenly the floodgates opened and a stream of recalls commenced. Consumer watchdog groups claim what's happened so far amounts to only the tip of the iceberg. Perhaps partly as a result of the ongoing import crisis, the dollar has gone into freefall, forcing the cost of oil to soar to $100 per barrel in November. It's evident that the Chinese government is no longer able to shoulder any part of the U.S. debt.

And with next year's Summer Olympics scheduled to take place in Beijing, things could become even more dire. Some human rights activists have called for a boycott of the event. China has also come under intense criticism for repeatedly blocking U.N. Security Council resolutions to force the Sudanese government to end its genocide in Darfur. (Sudan supplies China with much of its oil.) The Chinese rulers have also been faulted for sending military aide and equipment to the dictatorship in Burma.

Years ago, South Africa ended decades of apartheid only when people around the world stopped doing business with its economy. This page provides links to organizations which can help you understand what's happening in the world and make better choices when shopping for products and investment options. Some also track the adoption and enforcement of international trade agreements.

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