Modern Day Slavery Causes
Courtesy Wiki pages
Slaves can be an attractive investment because the slave-owner only needs to pay for sustenance and enforcement. This is sometimes lower than the wage-cost of free labourers, as free workers earn more than sustenance; in these cases slaves have positive price. When the cost of sustenance and enforcement exceeds the wage rate, slave-owning would no longer be profitable, and owners would simply release their slaves. Slaves are thus a more attractive investment in high-wage environments, and environments where enforcement is cheap, and less attractive in environments where the wage-rate is low and enforcement is expensive.
Free workers also earn Compensating differentials, whereby they are paid more for doing unpleasant work. Neither sustenance nor enforcement costs rise with the unpleasantness of the work, however, so slaves’ costs do not rise by the same amount. As such, slaves are more attractive for unpleasant work, and less for pleasant work. Because the unpleasantness of the work is not internalised, being born by the slave rather than the owner, it is anegative externality and leads to over-use of slaves in these situations.
Modern slavery can be quite profitable and corrupt governments will tacitly allow it, despite it being outlawed by international treaties such as Supplementary Convention on the Abolition of Slavery and local laws. Total annual revenues of traffickers were estimated in 2004 to range from US $5 billion to US $9 billion, though profits are substantially lower. American slaves in 1809 were sold for around $40,000 (in today’s money). Today, a slave can be bought for $90. The conscription of child soldiers by some governments is often viewed as a form of government-endorsed slavery.
Modern slavery is often seen as a by-product of poverty. Countries that lack education, economic freedoms and the rule of law, and which have poor societal structure can create an environment that fosters the acceptance and propagation of slavery.
Types of modern, or contemporary, slavery
The contractarian argument is unassailable all the time it is accepted that abilities can ‘acquire’ an external relation to an individual, and can be treated as if they were property. To treat abilities in this manner is also implicitly to accept that the ‘exchange’ between employer and worker is like any other exchange of material property . . . The answer to the question of how property in the person can be contracted out is that no such procedure is possible. Labour power, capacities or services, cannot be separated from the person of the worker like pieces of property.