During an earlier discussion of minimum wage Marc Porlier said
The State is not the only vehicle for helping the poor. In fact, I think it's a very poor vehicle for the poor, but let's stay on topic. Even despite the criticism in Stephanie Strom's New York Times article (subscription required), it is clear that business can aid the poor. There are also not-so-well-endowed philanthropic and charitable organizations: churches, for example. Tocqueville observed that in early 19th America, virtually no government was required in caring for the poor. The choice is not between endorsing government policy and doing nothing. So, with all due respect, you're usng a false dilemma.
I can't get around NYTimes firewall to read Stephanie Strom's article, but I did come across this same topic in a rather interesting location. I recently finished JEANS: A cultural history of an American icon by James Sullivan. It is a rather interesting, if pretentious read. During a discussion of Levi Strauss and Company, Sullivan notes (page 234-235)
Philanthropy and social conscience had been major initiatives from the days of Levi Strauss himself, setting standards across the corporate world. Benefits were always exceedingly generous. And employees were considered part of the family, always welcome at the table..."Arguably, no single U.S. corporation has done more to establish the moral high ground for social responsibility in business, " wrote Karl Schoenberger in Levi's Children: Coming to terms with Human Rights in the Global Marketplace.
Yet, Levi's began having trouble making a profit in an increasingly globalized world.
But loyalty was proving to be an increasingly burdensome yoke around the company's neck....[In the 1990s], the apparel industry's race to the bottom would finally force the all-American brand to move all its production, including production for its domestic market, abroad...LS&CO had made integrity the root of its indenity, and now the perception was that its integrity was subject to revision...Levi Strauss closed the last two [factories], both in San Antonio, on January 8, 2004. From paying thirty-seven thousand global employees as recently as 1996, the company had downsized to twelve thousand.
I understand from Marc and Will that they believe it is the job of non-governmental organizations and business to deal with poverty. They believe that the less government is involved the more likely poverty is going to be defeated.
Looking at the Levi Strauss example (or the opposite side of the same coin - Wal-Mart), the company tried to be a good corporate citizen by giving its employees good wages and benefits. It was punished by the market for doing so. The efforts of the biggest jean manufacturer were for nought due to the structure of the capitalistic market. Levi's had to cut its payroll by 66% to stay competitive and afloat. It just wasn't big enough to change the rules of the market.
For a while, Levis was able to defeat poverty for its employees. It was able to eradicate cases of poverty, but ultimately it wasn't able to defeat the institution of poverty.
So, I put it to Marc, Will and others who want less government involvement in poverty reduction, how do you think business and non-governmental organizations can defeat the institution of poverty, not just cases of individual poverty, without being able to change the rules as a governmental body can do?
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