Free trade endeavors to help workers in developing countries; the problem is that it cannot succeed in our cut-throat, capitalist world. When corporations go into developing countries they are not being philanthropic: they want to make money. In order to succeed in our globalized world, companies purge themselves of humanity and squeeze every last cent out of their production. This is not necessarily good or bad, it is just how the world of business works.
Growths of industries in developing countries create working class jobs. This class of jobs is both rudimentary and menial. Some examples are textiles, agriculture, and manufactured devices. They do not build human capital or financial gains; they are effectively powerless to better themselves. Karl Marx mourns them as: “that class of modern wage labourers who, having no means of production of their own, are reduced to selling their labour power in order to live.”
These laborers in developing countries, who have opened themselves to free trade, are arrested by wage slavery. Their occupations pay them just enough to live, but not a cent more. Free trade, cut-throat capitalism, and nations full of alternative workers guarantee that payrolls will be capped at the living wage. Budding domestic industries, termed infant industries, are unable to thrive because full-fledged foreign competition steamroll over them. Once infected by free trade developing countries are in an unfavorable position to ever become developed.
Ayn Rand, the most important philosopher on capitalism, believes that free trade is along the optimal path for economics. However, she also knows that under free trade, “the good of some men takes precedence over the good of others, with those others consigned to the status of sacrificial animals.” Developed countries are benefited, while developing countries are left by the wayside.
In conclusion, free trade is not the solution for developing nations because it polarizes their populations into numbed working classes, trapped in loops wage slavery and human capital erosion until a new force, perhaps protectionism, stems the drudgery. If not, developing nations are, “consigned to the status of sacrificial animals.”