Increased productivity leads to better wages

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What is problematic about the following paraphrase? ORIGINAL: When companies open sweatshops they bring technology and physical capital with them. Better technology and more capital raise worker productivity. Over time this raises their wages. As more sweatshops open, more alternatives are available to workers raising the amount a firm must bid to hire them. (Powell, 2008, 539) PARAPHRASE: Powell explains how sweatshops can improve the conditions of third-world workers. This process starts with the introduction of more technology and capital like machines and buildings, which improves the efficiency of sweatshop workers. Increased productivity leads to better wages, and similarly, more sweatshops create competition that also increases the wages of workers.

Reference no: EM131129912

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