If there’s a situation where a bunch of poor orphans are employed for 50c per grueling 16 hour work day plus room and board, then the fact that it might be better than starving to death on the street doesn’t mean it’s as great as we might wish for them. We might be sad about that, and wish they weren’t forced to take such a deal. Does that make it “exploitation?” in the mind of a lot of people, yeah. Because a lot of people never make it further than “I want them to have a better deal, so you have to give it to them”—even if it turns out they’re only creating 50.01c/day worth of value, the employer got into the business out of the goodness of his heart, and not one of the people crying “exploitation!” cares enough about the orphans to give them a better deal or even make they’re not voting them out of a living. I’d argue that this just isn’t exploitation, and anyone thinking it is just hasn’t thought things through.
Notice how you had to create a strawman of what people commonsensically call exploitation. The person you describe does exactly NOT seem to be employing the workers merely to “gaining disproportionate benefit from someone’s work because their alternatives are poor”. In your example, informed about the situation, with about 0 sec of reflection, people would understand him to NOT be exploitative. Of course, people usually would NOT blame Mother Theresa for having poor people work in her facilities and earning little, IF Mother Theresa did so just out of good heart, without ulterior motives, without deriving disproportionate benefit, and while paying 99.98% of receipts to staff, even if that was little.
Note, me saying exploitation is ‘simple’ and is just what it is even if there is a sort of tension with econ 101, doesn’t mean every report about supposed exploitation would be correct, and I never maintained it wouldn’t be easy—with usual one paragraph newspaper reports—to mislead the superficial mob into seeing something as exploitation even when it isn’t.
It remains really easy to make sense of usual usage of ‘exploitation’ vis a vis econ 101 also in your example:
The guy is how you describe? No hint of exploitation, and indeed a good deal for the poor.
The situation is slightly different, the guy would earn more and does it such as to merely to get as rich as possible? He’s an exploitative business man. Yes, the world is better off with him doing his thing, but of course he’s not a good* man. He’d have to e.g. share his wealth one way or another in a useful way if he really wanted to be. Basta. (*usual disclaimer about the term..)
Btw, imho a more interesting, but not really much more challenging, extension of your case is, if overall what the orphans produce is actually very valuable, say creating utility of 500 $/day for ultimate consumers, but mere market forces, competition between the firms or businessmen, means market prices for the goods produced become still only 50.01c/day, while the labor market clearing wage for the destitute orphans is 50c/day.
Even in this situation, commonsense ‘exploitation’ is straightforward applicable and +- intelligible a concept:
To a degree, the firms or businessmen become a bit irrelevant intermediaries. One refuses to do the trade? Another one will jump in anyway… Are they exploitative or not? Depends a bit on subtle details, but individually they have little leeway to change anything in the system.
The rich society as an aggregate who enjoys the 500 $/day worth items as consumers, while having, via their firms, had them produced for 50.01c/day by the poor orphans with no outside options, is of course an exploitative society in common usage of the term. Yes, the orphans may be better off than without it, but commoners do have an uneasy feeling if they see our society doing that, and I don’t see any surprise in it; indeed, we’re a ‘bad’ society if we just leave it like that and don’t think about doing something more to improve the situation.
The fact that some in society take the wrong conclusion from the feeling of unease about exploitation, and think we ought to stop buying the stuff from the orphans, is really not the ‘fault’ of the exploitation concept, it is the failure of us to imagine (or be willing to bite the bullet of) a beyond-the-market solution, namely the bulk sharing of riches with those destitute orphan workers or what have you. (I actually now wonder whether that may be where the confusion that imho underlies the OP’s article is coming from: Yes, people do take weird econ-101-igoring conclusions when they detect exploitation, but this doesn’t mean they interpret the wrong things as exploitation. It means their feel-good ‘solution’ might backfire; instead they should track consequences of alternatives and see that the real solution to the indeed existing exploitation problem isn’t as simple as to go to the next, overpriced pseudo-local pseudo-sustainable hipster shop, but is to start doing something more directly about the sheer poverty of their fellow beings far or near).
Notice how you had to create a strawman of what people commonsensically call exploitation. The person you describe does exactly NOT seem to be employing the workers merely to “gaining disproportionate benefit from someone’s work because their alternatives are poor”. In your example, informed about the situation, with about 0 sec of reflection, people would understand him to NOT be exploitative. Of course, people usually would NOT blame Mother Theresa for having poor people work in her facilities and earning little, IF Mother Theresa did so just out of good heart, without ulterior motives, without deriving disproportionate benefit, and while paying 99.98% of receipts to staff, even if that was little.
Note, me saying exploitation is ‘simple’ and is just what it is even if there is a sort of tension with econ 101, doesn’t mean every report about supposed exploitation would be correct, and I never maintained it wouldn’t be easy—with usual one paragraph newspaper reports—to mislead the superficial mob into seeing something as exploitation even when it isn’t.
It remains really easy to make sense of usual usage of ‘exploitation’ vis a vis econ 101 also in your example:
The guy is how you describe? No hint of exploitation, and indeed a good deal for the poor.
The situation is slightly different, the guy would earn more and does it such as to merely to get as rich as possible? He’s an exploitative business man. Yes, the world is better off with him doing his thing, but of course he’s not a good* man. He’d have to e.g. share his wealth one way or another in a useful way if he really wanted to be. Basta. (*usual disclaimer about the term..)
Btw, imho a more interesting, but not really much more challenging, extension of your case is, if overall what the orphans produce is actually very valuable, say creating utility of 500 $/day for ultimate consumers, but mere market forces, competition between the firms or businessmen, means market prices for the goods produced become still only 50.01c/day, while the labor market clearing wage for the destitute orphans is 50c/day.
Even in this situation, commonsense ‘exploitation’ is straightforward applicable and +- intelligible a concept:
To a degree, the firms or businessmen become a bit irrelevant intermediaries. One refuses to do the trade? Another one will jump in anyway… Are they exploitative or not? Depends a bit on subtle details, but individually they have little leeway to change anything in the system.
The rich society as an aggregate who enjoys the 500 $/day worth items as consumers, while having, via their firms, had them produced for 50.01c/day by the poor orphans with no outside options, is of course an exploitative society in common usage of the term. Yes, the orphans may be better off than without it, but commoners do have an uneasy feeling if they see our society doing that, and I don’t see any surprise in it; indeed, we’re a ‘bad’ society if we just leave it like that and don’t think about doing something more to improve the situation.
The fact that some in society take the wrong conclusion from the feeling of unease about exploitation, and think we ought to stop buying the stuff from the orphans, is really not the ‘fault’ of the exploitation concept, it is the failure of us to imagine (or be willing to bite the bullet of) a beyond-the-market solution, namely the bulk sharing of riches with those destitute orphan workers or what have you. (I actually now wonder whether that may be where the confusion that imho underlies the OP’s article is coming from: Yes, people do take weird econ-101-igoring conclusions when they detect exploitation, but this doesn’t mean they interpret the wrong things as exploitation. It means their feel-good ‘solution’ might backfire; instead they should track consequences of alternatives and see that the real solution to the indeed existing exploitation problem isn’t as simple as to go to the next, overpriced pseudo-local pseudo-sustainable hipster shop, but is to start doing something more directly about the sheer poverty of their fellow beings far or near).