Essay - Is There a Possibility for a Legal Baby Market?

 

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Is There a Possibility for a Legal Baby Market?

The world economy seems to have recovered from the tumultuous conditions brought about by the disasters of the past years. The September 11 attack in New York last 2001 had brought many complications, combined with the outbreak of SARS and other perceived biological disease. The complications of wars have dragged down the international economy, increasing the numbers of bankruptcy in almost all industries. The good news however, is that those companies and industries that have managed to survive can now enjoy the cyclical upturn. But the key challenge here, moreover for policy makers worldwide, is therefore how to transform the strong cyclical upturn into sustained robust long-run growth (UN, 2004).

It is undoubtedly a fact that the United States of America is still one of the countries that has the most powerful economy, if not the most powerful, in the world today. The United States Chamber of Commerce (2004) stated that the American economy is as strong as ever and remains to be a leader in the world today despite the challenges of brought about by recession, terrorist attacks, corporate scandals and uncertainties of war. With the average GDP showing signs of weakness in 2000 and has eventually ended up in a recession in 2001, the U.S. recovered in high pace as GDP growth picked up in 2003 (USCC, 2004). The GDP growth basically caused the incomes and standard of living all of a sudden. The GDP per capita was $35,736 in 2003 which means that in real GDP is $10.398 trillion - the USCC (2004) claims that there isn’t a single country that can come close to those figures.

Powered by the principles of capitalism, the key economic ingredients of the U.S. are natural resources and labor (U.S. Department of State, 2004). With these key factors, the U.S. GDP grows steady since the eighties - rising from more than $3.4 trillion in 1983 to around $8.5 trillion by 1998 (U.S. Department of State, 2004), and today with $10.398 trillion (USCC, 2004). Furthermore, the U.S. also utilizes mixed economy where privately owned businesses and government both play important roles (Giersch, 1987). In this system, there privately owned business is given emphasis as in the same level of emphasis on government. Here, both the businessman and consumer play a huge role in establishing a desirable economic condition. Private businesses produce most goods and services, and almost two-thirds of the nation's total economic output goes to individuals for personal use while the remaining one-third is bought by government and business (U.S. Department of State, 2004). Free enterprise also gives way to the growth of certain industry just like the manufacturing industry and the service industry. The government’s role in this economy includes stabilization and growth, regulation and control, and direct services (Giersch, 1987; U.S. Department of State, 2004).

However, despite these characteristics, it can be said that the wealth of the US has not been possible without a little help from the country’s black market. According to Talvi (2003), although there are no truly accurate statistical study of the black market economy that has ever been undertaken, the informed estimates put the size of the market at nearly 10 percent of the Gross Domestic Product, pulling in no less than $650 billion a year. This of course includes the underground economy of drugs, pornography and other illegal market, including baby selling or trafficking. This contribution of the black market to the GDP of the US is stunning and considering that some of the main illegal market would be made illegal, their potential for contributing more to the country’s economy can increase. For instance, it can be predicted that legalizing marijuana would increase companies that manufactures it and would make companies like Marlboro to have their own packaged marijuana. This will allow the government to have additional tax collections which will increase revenue. The same thing can be said with prostitution, pornography and baby selling. However, while this idea of legalizing the illegal can be a good economic idea, the conflict is that it goes against most of the morals and norms of the society. Most religion will go against it, as well as NGOs and activists around the globe. The focus of this paper will be on one specific illegal economy, which is the baby market. For years, the black market of baby selling has been silently prevalent and has involved many illegal transactions. A judge in the United States even suggested that legalizing this market can open huge benefits for nations. The aim of this paper is to evaluate the implications of this action, if ever it would be executed, to a nation’s economy. Furthermore, this paper will try to rationalize and argue against the pros and cons of baby selling. It will also go about the basic known facts about baby selling i.e. its difference form adoption, the rate of adoption, etc.

The Idea of Legalizing Baby Selling

            Some years ago Judge Richard Posner suggested that one way to bridge gap between children who not have homes and couples who cannot have children is by treating the children as commodities. If they were put up for sale, then people who wanted them could simply bid for them. Of course, because of the negative connotation of the word ‘selling babies’, Posner's proposal was immediately denounced by people who said it would be degrading to put a price on a baby. Furthermore, another criticism of the commodities idea is that putting a price on an infant would cause supply to rise to meet the demand. Impoverished women would then become pregnant in order to sell their babies. However, Posner’s rationale is that there are many people who are capable of bearing children but who do not want to raise them. Also, many other people who cannot produce their own children but want to raise children, and that the costs of production to natural parents are much lower than the value that many childless people attach to children, suggests the possibility of a market in babies, especially since the costs of production by the natural parents are typically much lower than the value that many childless people attach to the possession of children. Moreover, the supply of adoptable infants will increase as birth mothers seek to sell their parental rights for a profit. The price birth mothers receive for parental rights will rise until the supply of those rights expands sufficiently to meet demand. Importantly, greater numbers of adoptable infants means that fewer couples must remain childless. That benefit is immense for those suffering the agony of unwanted childlessness.

Economic Theory for Baby Selling

            The economic theory for this unique proposal is none other and simply the theory of supply and demand. In microeconomic theory the partial equilbrium supply and demand economic model originally developed by Alfred Marshall attempts to describe, explain, and predict the price and quantity of goods sold in competitive markets. It is one of the most fundamental models, widely used as a basic building block in a wide range of more detailed economic models and theories. The theory of supply and demand is important in the functioning of a market economy in that it explains the mechanism by which many resource allocation decisions are made. However, unlike general equilibrium models, supply schedules in this partial equilibrium model are fixed, as the long run reciprocal relationship between demand and supply is ignored. In general, the theory claims that where goods are traded in a market at a price where consumers demand more goods than firms are prepared to supply, this shortage will tend to increase the price of the goods.

The Rate of Adoption in America

According to the National Attitude Adoption Survey, more than 134,000 children wait in foster care for adoptive homes in America (Donaldson, 2002). This number is basically enough to fill any stadium in the US. This rate of parentless children indicates their huge supply if ever they will be legalized in the market. Furthermore, this also counts the attitudes of Americans toward adoption. The NAAS reported that many Americans consider adopting children, thousands of children still remains in foster care. The survey reported that nearly four in ten Americans (39%), or about 81.5 million adults, have considered adopting at some time in their lives. This is up from 36% uncovered in 1997. With 134,000 children in foster care waiting for permanent families, these children would all have a home today if less than 1% of adults who have considered adoption pursued adopting these children. Unfortunately, tens of thousands of boys and girls still languish in foster care because not enough adults who consider adopting actually do it. The fickleness or the lack of action of couples is basically what’s keeping adoption low (Donaldson, 2002).

However, despite the fact that adoption is low, favorable opinions about adoption are prevalent among all social groups in the United States. The rate of support for adoption, however, has been on the increasing ride for years. Donaldson (2002) stated that positive opinion of and familiarity with adoption has grown significantly in the last five years. In 1997, 56% of Americans had a very favorable opinion about adoption – today, 63% do. Similarly, 58% had experienced adoption within their family or among close friends in 1997, compared to 64% now. The NAAS further reported that the indicators of strong support for adoption include: 78% of Americans think the country should be doing more to encourage adoption; 95% think that adoptive parents should receive the same maternity and paternity benefits from employers as biological parents; Three-fourths (75%) of Americans believe adoptive parents are very likely to love their adoptive children as much as children born to them; Over 80% think that parents get as much or more satisfaction from raising adoptive children as from raising biological children; Americans also have very positive opinions about adoptive parents; and they are seen as lucky by 94% of Americans.

There is also a report on the demographic associated with people who considers adoption. The demographics include: hispanic populations have a far greater likelihood to consider adopting (54%) than African-American (45%) and White (36%) populations. Those indicating they have “very seriously considered” adopting are Hispanic (32%), African-American (23%), White (16%); age is also of a factor in considering adoption.; The highest percentage of individuals who have considered adopting are those aged 35-44 (48%) and 45-54 (45%). Those least likely to have considered adopting are those aged 65 and older (21%) and 55-64 (34%); Married couples are more likely to have considered adopting (43%) than singles (35%) and the previously married individuals (34%); Females are more likely to have considered adopting than males, 42% to 35%, respectively; There are no significant differences between different income ranges – thus income is not an indicator on whether someone considers adopting; Finally, education is also not a determinant, as those with a high school diploma have the same propensity to consider adopting as those with a college degree. However, those with a graduate degree are slightly more likely to consider adopting (46%).

The Prevalence of Baby Selling in the Black Market

There are many reports around the world about the illegal selling of babies. Baby selling is basically considered as a form of human trafficking. It is an activity in the underground economy that is unknown to many and known to few. These activities can either come from organization rings, or even just independent couples. One report was from France last July, where four people were held for questioning by Paris police, in an enquiry into a racket in which Bulgarian mothers allegedly sold their babies to childless couples. Investigators tapped the telephone of a young Bulgarian before she gave birth this week and heard discussions in which a price of 5,000 euros (6,100 dollars) for a girl and 6,000 euros for a boy were mentioned (Agence France Presse, 2004).

Another report that also took place last July was on Jakarta where police have found one more baby at a maternity clinic waiting to be sold to Singapore adoption agents by a network in West Jakarta, after arresting a Singaporean woman for baby-trafficking. The acquired information about the pricing was 25 million rupiah ($4,600) for a three-month-old girl (Channel News Asia, 2004).

Also in Asia and last July, Chinese police have arrested 95 people suspected of trafficking babies in Northern provinces after buying them from hospitals and clinics (Agence France Presse, 2004b). Details of babies bought and sold by the trafficking ring were listed in records of a notebook computer owned by the Gang’s leader, adding that the babies appeared to be unwanted children that were either sold or given away at the medical clinics by their mothers (Agence France Presse, 2004b). Parents listed in the computers are unwed mothers, college students and unemployed workers. Babies are usually sold to families unable to have children either for biological reasons or due to China's strict "one child" family planning policy (Agence France Presse, 2004b). Also in China, another ring has been convicted because of baby trafficking last July, as 28 baby girls, none older than three months, were found hidden in nylon tote bags aboard a long-distance bus. In this case, the leader of the group has been sentenced to death (The Associated Press, 2004). Baby trafficking is a serious problem in China. Chinese authorities say thousands of children are abducted or bought from poor families every year for sale to childless couples. Girls are sometimes sold as brides in rural areas with fewer women. This trend is basically driven in part by China's birth control policy, which limits most couples to one child. The limit prompts some parents to kill baby girls in hopes of trying again for a boy (The Associated Press, 2004). Thus, to prevent killing, some parents just consider selling their baby girls in the black market.

Another controversial report about baby trafficking is about the conspiracy on the ‘Miracle Babies’ born on childless couples from Britain. A church group claims that it can provide ‘miracle babies’ for women who cannot give birth by traveling to Kenya. The Church of England was suspicious that there was an anomaly involved regarding the babies. Their suspicions were supported by Royal College of Obstetrics and Gynecology who found cases in which the DNA of the parents and the babies did not match (Williams, 2004).

Last year in the USA, a woman plead guilty for selling her baby. The 29 year old was sentenced last year for selling her 3-month-old son. The baby-for-cash deal was consummated in a discount-store parking lot in the south King County city of Covington on June 7, 2001. Ramsey got $2,000 cash and a gift bag. The money was spent on a trip to a casino and bar, a traffic ticket, groceries, clothing and electronics (The Associated Press, 2003).

Abortion and Baby Body Parts Selling in the US

Statistics show that many women in the United States don’t want the child in their womb. According to the National Right to Life (No date), there have been more than 40 million abortions in the twenty six years since the U.S. Supreme Court legalized unrestricted abortion on January 22, 1973. In 1973, when it was first legalized, the total number of abortions was 744,600. Then in the first year of the new decade, 1980, the number increased to 1,553,900. In the nineties, the numbers increased to 1,608,600 and the following years’ estimated figures has not been going down the million marks. Hurt (2004) stated that the number of deaths in war that the US had participated into cannot equal to the number of deaths acquired from abortion.

This increasing number in abortion has many complications socially and economically. Socially, the prevalence of abortion has changed the ways women perceive their child-bearing ability. There are many women now who have less value in life, particularly the life of the child they bear. Reasons for abortion are soaring without any regards to its moral consequences. According to Barkole et al (1998), the reasons women resort to abortion include: wants to postpone childbearing (25.5%); wants no (more) children (7.9%); cannot afford a baby (21.3%); having a child will disrupt education or job (10.8%); has relationship problem or partner does not want pregnancy (14.1%); too young; parent(s) or other(s) object to pregnancy (12.2%); risk to maternal health (2.8%); risk to fetal health (3.3%); and other reasons (2.1%).

On the other hand, in economics, this has been another addition to growth of medical service industry in the U.S. More and more clinics are beginning to provide abortion services and clinics made specifically for abortion are increasing. A growing proportion of providers offer very early abortion (at 4 weeks gestation), and increase from 7% in 1993 to 37% in 2000 (Henshaw and Finer, 2003). Furthermore, in 2000, the cost of a nonhospital abortion with local anesthesia at 10 weeks of gestation ranged from $150 to $4,000, and the average amount paid was $372 (Henshaw and Finer, 2003). However, one disturbing economic implication of abortion is the emergence of ‘baby-body parts trafficking’. The babypartstrafficking.org (2004) cited that baby-body parts trafficking means a business of buying and selling the body parts, organs, tissue, skin, and blood from aborted babies whose gestational ages range from a few weeks to full term (up to nine months). Here, a technique in abortion method is practiced to ensure that the parts are still valid for research. Parts are basically sold with prices ranging from $150 to $999 depending on the freshness of the parts and its condition.

The Supply and Demand of Babies

            According to Boudreaux (1995), The National Committee for Adoption (1989) estimates that in the United States 20 couples are willing to adopt for every available infant. However, today, that report is in contrast with what the

National Attitude Adoption Survey stated that more than 134,000 children wait in foster care for adoptive homes in America. Thus, it can be said that the there is greater supply of children today than that of demand from childless couples. However, there were no reports if the most of the children in wait for adoption are still in their infant stage. This is a question if such those who are in wait can be considered as supplies. However, what can be considered as valid supplies are those fetuses that are being aborted every year. If there would be a legal baby market, the number of abortion would decrease as pregnant women would be willing to earn some rather than kill their own child. This can increase the number of supplies of babies. But will it compensate the demand? About 81.5 million adults have considered adopting at some time in their lives. The only problem however is that there is a low rate of couples who actually pursue the idea. But then, the solution if ever, is to convince the potential buyers of the benefits of having a baby. Of course, the legalization of baby selling can come with public relations and advertisement. The only problem is how to change the moral stance of couples and how to make such economy morally acceptable.

Advantages of Making Baby Selling Legal

Out of the references that have been reviewed throughout the paper, several advantages of legalizing baby selling have been hypothesized. The advantages include:Growth in adoption houses that sells babies. These houses will be taxed and will help increase the revenue of the US economy considering that there are many children that are being left out in the orphanage; Decrease in abortion; More babies will be given the opportunity to live their lives and contribute someday to the economy of the United States; Increase in living babies will increase the need for baby care. This can help further increasing the income of the baby market particularly the food, drinks, medical and gear products. According to Smiley (2004), Americans spend more than $7 billion every year on diapers and baby pillows. Other baby products can be boosted because of decease of baby mortality due to baby selling; Finally, legalizing baby selling can be the cause of birth of new businesses and markets, and the birth of new constitutional laws that would state the requirements for buying a baby. It might influence other nations and might bring birth to export.

Disadvantages

On the other hand, the disadvantage of such proposition is that there is no guarantee where the legalization might lead. It can have great moral damage, which can equal that of abortion. Furthermore, while the black market on baby is high, there is still no research evidence that many Americans will be willing to spend their cash for a baby. There is also no guarantee that, despite the couples meet the requirements of buying the baby, the baby is going to be safe. International syndicates may use it as a means of buying babies for pornography or for slavery. Moreover, only the rich will get all the babies and the demand from the rich might be very all compared to the supply. This can also change the women perceive babies and might see them as just profits. Finally, this can increase a global infant theft.

Conclusion

            There is a possibility that legalizing baby selling can uplift the revenue of the United States. This can also become the cause of uplifting related economies such as baby food and drinks industry, baby health care products industry, baby medical industry, etc. Hence, it can also stop the increasing rate of abortion and will offer many individuals a chance to live in this world. However, the area is still poorly lack research and there might be many complications that lie in wait upon its implementation. While it can stop the morality of abortion, this legalization is still a question of morality. Baby being sold like meat in the wet market can arouse public protests most particularly to be led by human rights activists and pro life activists. Its legalization will be tricky because economics is not just about profit and financial objectives, but it also has its ethical side. It can also have an effect in the political arena, and worst, the public could revolt against it before it would even be implemented. The bottom line is that this area needs further research and study to be valid and credible. Social and other complications should be predicted clearly on the studies. The view of the public should be asked and other economic issues such as demands and supply should be firmly examined. While this sounds like a great economic opportunity, the idea should be hasted and should be examined deeply to regrets.

References:

Agence France Presse (2004). ‘French police detain four in baby-trafficking enquiry’. Agence France Presse, July 23, 2004 Issue.

Agence France Presse (2004b). ‘Police bust baby-trafficking ring in northern China’ Agence France Presse, July 13, 2004 Issue.

Babypartstrafficking.org (2004). What is Trafficking? An Overview (online). Available at: http://babypartstrafficking.org/html/Overview.html [Accessed: 12/10/04].

Bankole, A., Singh, S., and Haas, T. (1998). Reasons Why Women Have Induced Abortions: Evidence from 27 Countries.  International Family Planning  Perspectives, Vol. 24, No.3; pp.117-152.

Boudreaux, D.J. (1995). A Modest Proposal to Deregulate Infant Adoptions. The CATO Journal, Vol.15, No.1; pp.

Channel News Asia (2004). ‘Baby racket busted in Jakarta, Singaporean woman arrested’ MCN International Pte Ltd. July 16, 2004.

Donaldson, E.B. (2002). National Adoption Attitudes Survey: Research Report. Harris Interactive Marketing Research, US.

Giersch, H. (1987). The U.S. Economy. Westview Press

Henshaw, S.K. and Finer, L.B, (2003).The accessibility of abortion services in the United States, 2001, Perspectives on Sexual and Reproductive Health, Vol.35, No.1; pp.16-24.

Hurt, J. (2004). U.S. Abortion Deaths Compared to U.S. War Deaths (online). Available at: http://www.htmlbible.com/abortstats.htm [Accessed: 12/10/04].

Smiley, T. (2004). Interview: Financial news journalist Lynnette Khalfani discusses the exploding baby gear market. National Public Radio, Inc.

Talvi, SJ. (2003). Review of E. Schlosser’s “The Underground Economy: Reefer Madness: Sex, Drugs, and Cheap Labor in the American Black Market”. Real Change News, Seattle, WA.

The Associate Press (2003). ‘Woman sentenced for selling her baby’. The Associated Press State & Local Wire, April 26, 2003 Issue.

The Associate Press (2004). ‘Baby-trafficking gang in China gets tough sentences: 28 baby girls smuggled in tote bags’ CanWest Interactive, a division of CanWest Global Communications Corp. Edmonton Journal, Alberta

UN (2004). State of the World Economy. World Economy and Social Survey 2004. United Nations.

U.S. Chamber of Commerce (2004). The State of American Economy. Department of Commerce, Washington, D.C.

U.S. Department of State (2004). How the U.S. Economy works (online). Available at: http://www.usembassy.de/usa/etexts/oecon/chap2.htm [Accessed: 08/05/04].

William, H. (2004). Archbishop's 'Miracle Babies' Raise Child Trafficking Fears. The Press Association Limited Press Association