Social dump

Social dumping - a specific approach to the concept of dumping, from a non-traditional, strictly commodity side.

The concept is characterized by a situation in which the brand or product's competitiveness is not raised as a result of pure rules such as increased productivity and productivity of economic resources, and as a result of low wages and lack of social security for employees. In practice, this phenomenon, through low wages, social costs and standards, allows governments in many countries to organize cheaper production in the country, as well as encourage foreign entrepreneurs to make direct investments.

It is worth pointing out that, in the case of social dumping, it is human work that is dealt with in a commercial aspect - the employee sells his knowledge and skills and gets remuneration instead.

The main effects of this kind of situation are human exploitation and the threat to honest entrepreneurs, as their operating costs will always be higher than those using social dumping (fictitious contracts where official remuneration and working time are far from the actual ones) , even if the latter would pay high penalties for these practices.

The honest entrepreneur, in confrontation with the above practices, has two options in this situation:

In practice, however, due to the multiplicity of such situations, the honest employer often loses.

It is difficult to adjust the appropriate direction of economic policy, as is evidenced by the fact that both social and liberal doctrine are widely criticized in this regard. Even high social protection is not a golden option as it restricts the competitiveness of production and causes extreme distortions in its production. Bibliography

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