Textile Production Pains: The Right, The Wrong, & The RelevantGaurav Ohri & John Grimaldi

What do you think?• What do you think was the main cause of the loss of

employment in New England textile mills circa 1860-1875?

• What do you think is the main reason people are being laid off from manual labor jobs in the textile industry today?

• Are the reasons related? Discuss with your neighbors!

What factors contributed to the decline of New England Mills in the late 1800’s?• Mechanization – There was no longer such a high demand for

labor as improved machinery was much more self-reliant.

• Globalization – The south began producing with lower expenditure and could therefore charge lower prices.

Today’s Mechanization• Technological advancement and mechanization are today’s

main culprits for job loss.

• Laid off workers aren’t victims of globalization, but of mechanization and technological progress. Same concept applied back in late 1800s.

• When demand for manual labor drops, production will remain relatively stable• -Graph on page 173

Globalization• Shantha Bloemen argues in T-Shirt Travels that globalization is

the main detriment to third world countries such as Zambia.

• As New England upped their production in the cotton industry, the mills found themselves competing with countries and regions capable of producing with even lower prices.

• In the case of American Cotton production, the U.S. government is subsidizing the growth of domestic cotton to spur on American growth. This allows U.S. farmers to outcompete third world country farmers with government.

Technology• Technological advancement not globalization is responsible for

most of the job loss in the textile industry (both in textile revolution era, and today)

• During the second Industrial boom of the 1860’s in New England, production remained steady as jobs were lost.

• This is attributed to the shift to more technologically refined machinery as opposed to a dramatic increase globalization

• Demand for cheap, cotton textiles will always be fairly steady – it’s a necessity good.

Debunking an Argument• As you write essay consider the following:

• The clothing that Goodwill donates to third world countries may not be the sole reason behind Africa’s economic failures.

• Other causes include:• Weak leadership• Unfair global trade regulation• Technology• Lack of participation in the global economy.• In fact, once China and India began to participate in the global economy,

their poverty levels dropped and their unemployment levels sharply declined.

Luxury?• As suggested by Deluxe, Mass production and luxury seem to

be two conflicting entities.

• Discuss in groups of three how you perceive the mass production issues discussed in this power point to tie in with the luxury industry.

• Are the cotton goods produced in Travels even considered luxury goods? Are luxury companies insulated by antiquated methods of production? Are there other goods that luxury brands produce that may come out of these factories?

• Go!