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The fact that japanese have better machines than pakis could just as well be explained by their stronger labour laws instead of the assertion that expensive machines only become economical with high quality workers. Only the flip flops are the hint of incompetent workers, the remaining bad conditions in the pakistani factory can all plausibly result from the owner investing as little as he can get away with and cheap wages (for whatever reason) allowing him to get away with less automation.

Especially together with the frequent assertions that people are unequal, IQ statistics for the countries would've been more rigorous evidence for the author's thesis.