Bono the Capitalist Exploiter

The truth is that Bono is doing something admirable just like Nike has been for a long time. Any factory that opens in an area with low employment benefits the population. Competition for labor eventually lifts wages as we have seen in Industrial Revolution Europe, South Korea, Taiwan, and many other places during many other times.

Capital investment and competition for labor by American multinational corporations has for decades caused wages and living standards to rise in underdeveloped countries like Lesotho. Indeed, the mere fact that people seek such jobs is proof that they believe that their living standard will improve by doing so.

Bono may be paying below-minimum wages today, but that will not last as the productivity of his employees improves. One thing that would speed up this process is even more foreign “sweatshop” investment, which would stimulate competition for Lesotho’s labor force even more. Countries like Lesotho need more sweatshops, not fewer. Perhaps Bono can persuade some of his multimillionaire entertainment industry friends to invest with him.

To say that Bono’s factory is something special would not be truthful. The Edun clothing line is doing well, and is employing hundreds of people. That’s great. It’s called capitalism.