Cheap Labor

One of the major differences between the socio-economic structures of the US and India is the ratio of the costs of materials and labor. Compared to America, Indian labor is ridiculously cheap, and materials are relatively expensive... steel and glass and other materials are moved fairly easily, levelling out their prices all over the world. People are not as mobile, especially internationally, and so the labor rates vary wildly.

This is apparent in many ways, most recently the other night as I looked at a plate made from leaves held together by little slivers of wood. In the US, the costs of the labor involved would make it much more expensive than paper plates. Here, it is a simple, economical solution. Another is example is street cleaning. They do not use big, hundred thousand dollar machines. They pay old women to sweep them with brooms, probably less than a dollar a day. Imagine how insane it is to spend you whole day literally sweeping the street of dirt and dust.

Overall, it affects the balance of what kinds of things are economically feasible. Working class families can afford a housecleaner and/or a cook, but must rely on a bicycle for transportation. Markups in restaurants are much less, as the labor in the dining room and kitchen is such a small percentage of the cost.

It also effects construction approaches. Heavy machinery is again put aside in favor of manual labor. Need 2 tons of bricks moved up to the 4th floor? Hire a few women to carry them on their heads.

Much of the staff here at JSS, who are performing skilled labor, whether lab work or computer work, get paid around 3000rps/month, or about $60 a month. Thats a long shift at US minimum wage, and some of you make that in an hour. Here, it is enough to live adequately, though not luxouriously or even "comfortably". It is still much more than manual laborers, and is also a reliable paycheck. There is no risk of going hungry, which is a comfort not afforded to a large percentage of the population.

In contrast, our apartment in a high-rise (5 floors), in a nice neighborhood rents for that same $60/month, and we will be getting paid a few times the amount of the local workers. It is a struggle to balance the feelings of worrying how to get by for a month on what used to be a days' pay and the sense of guilt at getting paid so much more than the people we work next to.
0 Responses