Would higher wages for workers increase the cost of clothing?
An increase in workers’ wages has little effect on the price of the garment. Workers wages are often less than 1% of the consumer price.(4) Raising wages does not significantly affect companies’ profit margin, even if they do not pass on added costs to consumers. But suppose they did. If a company doubled the wages, causing the price of a $20 garment to increase to $20.20, would you be willing to pay the difference? Our public institutions should use our taxpayer money to choose clothes sold to the lowest responsible price–not at a price that can only be met by using sweatshops.
