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The true cost of cheap fashion and the case for Fair Trade. According to the Department of Labor, over half of the garment factories in the United States are sweatshops. The popularity of sweatshops began at the turn of the 20th century, as consumer demand rose for trendy but inexpensive off-the-rack clothing. Given the difficulty of mechanizing the clothing manufacture process, cheap human labor was needed to produce more garments by hand. Manufacturers reacted by outsourcing production globally to countries like Asia for low-wage, union-free “sweatshop” contractors, allowing them to cut costs and increase profits at the expense of human labor.