Wednesday, March 29, 2006

A Limited Labor Force is a Strong Labor Force


The struggle for labor rights in the United States has been less of a struggle for equality and more of a struggle for limitation; a limitation of workforce. It distresses me how little progressives know or remember about the labor movement in the United States. The struggle, the fight for a higher living standard, was aimed at limiting the amount of workers in the job market. This has always been the goal of labor. Although Mary Harris Jones (Mother Jones) raised awareness about deplorable working conditions of children, the momentum behind the child labor laws was to limit the amount of workers in the market. An excessive workforce is a benefit to managment, not the worker. A limited work force will push the wages up and improve the standard of living for those who toil for the profit of the business owner. It's the simple law of supply and demand; as there are less workers in the work force the pay is high; as there are more workers in a work force, the pay is lowered. A work force flooded with cheap labor is precisely what the business community desires. A flooded workforce makes a strike, the only real negotiation that a worker owns, very difficult to organize. Who would strike while there are 10 others waiting to take your job for lower pay? A strike is self defeating without a job to return to. A work force brimming with cheap labor pushes wages down and increases worker insecurity. If there are 10 people desperate for the same job, the employer can, and should, lower the wage to benefit his bottom line - profit.

Caesar Chavez , the founder of the United Farm Workers of America and recipient of the Presidental Medal of Freedom, was acutely aware of this fact and took harsh measures against a fluid labor market. Ruben Navarette Jr. writes in the San-Diego Union Tribune, “Despite the fact that Chávez is these days revered among Mexican-American activists, the labor leader in his day was no more tolerant of illegal immigration than the Arizona Minutemen are now. Worried that the hiring of illegal immigrants drove down wages, Chávez – according to numerous historical accounts – instructed union members to call the Immigration and Naturalization Service to report the presence of illegal immigrants in the fields and demand that the agency deport them. UFW officials were even known to picket INS offices to demand a crackdown on illegal immigrants.

There’s been a lot of chatter recently about the immigration issue, specifically with Mexico, as a problem of race. This claim seems to be an attempt by the pro-open borders crowd to muddy the waters of the debate and move the argument from the heart of the issue –- access to labor -- to the shadows -- racism. The argument for a limited workforce is valid. I certainly do not think that Caesar Chavez was a racist, nor would any rational person. What we need to do as a nation is to take a serious look at where we, our work force, wish to be in 10 years. For instance, the construction industry , once a middle-class trade, is spiraling downward on the wage scale. It’s no coincidence that there is %15 to %20 immigrant labor in the field of construction pushing down or stagnating the wages. The natural question beckons, where will the labor flooding end? There are very few industries safe from worker saturation. In fact worker saturation, a byproduct of skyrocketing population growth, is a root of poverty in many third world nations.

As more immigrants enter our country they will move up the pay scale and saturate each job category with inexpensive labor, slowly lowering the standard of living for all of those citizens in a paticular industry. The trend of illegal and cheap labor is expanding. Illegal immigrants are no longer just on the outskirts of migrant farm work; they are building our homes, driving our trucks and repairing our roofs. In fact there is no good reason to believe that they will not move up the payscale to our white collar industries . There are millions of highly trained professionals in South American, many with great adulation for our job markets, who will eagerly come to the U.S. and work for less than scale. The Free Trade Agreement of the Americas (FTAA) was designed, in part, to facililate the movement of professional workers from South American to the U.S. The main problem with a porous border or a guest worker program is that they will not limit the supply of labor – we will receive a continuous flow of cheap labor, lower wages, and therefore, lower living standards. Do we want to have so many people looking for work in the U.S. that living standard will be equivalent to that of the third world? Or do we want negotiation power in the job market and the ability to demand higher wages due to less worker supply? If it’s the latter, then a limited supply of labor is the true answer. If you support a flooded labor market, lower standard of living for millions, eroded tax base, and weaker labor unions then you should support a guest worker program, or better stated, support the status quo.

6 Comments:

Anonymous Anonymous said...

Good points, where will it stop? South America is pretty big. Why should we be responsible for their unemployment problems?

Good post.

8:23 AM  
Blogger EAPrez said...

Bush is trying to play politics by trying to show the rabid repubs he is trying to do something while keeping his corporate donors happy with cheap labor. The Repubs have 'rubber stamped' everything else this president has wanted - why should this be any different. They should be going after the corporations that hire illegals with HEFTY penalties. Hefty enough not to make cheap labor worth the risk. Cheap labor drives down the wages of the middle class. Additionally, we should also stop propping up the screwed up Mexican government. If Bush was really interested in protecting America and its citizens he would have put more effort into helping to repair Mexico and forcing out THAT government!!!!!

7:53 PM  
Blogger Van said...

Eaprez - you are right on so many levels.

You wrote:
"Bush is trying to play politics by trying to show the rabid repubs he is trying to do something while keeping his corporate donors happy with cheap labor"

It is impossible to please both. And yes, the Mexican government is corrupt - they are an Oligarchy with a tight grip on its people.

We are enabling a the Mexican government. It's a sad state of affairs. I was going to mention this im my post, but it's long enough I think. Maybe next time.

7:17 AM  
Blogger fallenmonk said...

On the point eaprez. Bush is trying to serve two masters and neither has the best interest of the American middle class at heart. All the corporations and and their evil lobbyists want is profits and at any cost.
All the racists and psuedoreligious right want is a pure white America. This meets the criteria of imovable object and irrestible force.
As Van and others have pointed out the solution is simple. Make the pain of hiring illegal immigrants severe enough to eliminate it (notice I did not say discourage). Business will not like it because it will cause their costs to rise and your average short sighted American won't like it because prices will rise.
Sadly, I do not think our elected officials have the gumption or incentive to make the hard choices necessary and they will make pretend fixes like fences. It will be interesting to see what happens, not pretty or encourging but interesting.

10:25 AM  
Blogger Van said...

Once again you are right on.

When you wrote:
"All the corporations and and their evil lobbyists want is profits and at any cost".

You hit it right on the head. Corporations have a legal obligation to maximize profits - at all cost.
Wasn't it Milton Friedman who said,” The only moral obligation of a corporation is to maximize profits"?

There is nothing wrong with this line of thinking, as long as it does not get in the way of my interests or the interests of the middle-classes.

Unfortunately the latter is occurring with tremendous frequency. Corporations are psychopathic in their nature. They are not obligated in anyway to protect my interests, but when they continue to replace my government's role, that's when I have a problem.

Thanks for your comments. It's like handing the keys to a drunk driver, and he/she is your only way home.

Disaster!

6:56 AM  
Blogger Van said...

I shot a letter to Senator Mel Martinez:

He replied:
"Thank you for contacting me with your support for homeland security enhancement and comprehensive immigration reform. I appreciate hearing from you and would like to respond to your concerns.

Like you, I strongly believe that one way to safeguard our homeland and halt the flow of illegal immigrants is to work tirelessly to secure our borders. On October 28, 2005, President George W. Bush signed into law the Homeland Security Appropriations bill for fiscal year 2006 (P.L. 109-90), which includes more than $30 billion to protect our homeland. It specifically sets aside $2.3 billion for the Border Patrol to improve and expand its stations, to install and improve fencing, lighting, and vehicle barriers along the border, and to acquire technologies, such as portable imaging machines, sensors and automated targeting systems that focus on high-risk travelers and goods. However, this is just a start, as Congress begins to review the President's recently submitted fiscal year 2007 budget request. Please know, I will continue to work with my colleagues to ensure substantial additional resources are made available to the Department of Homeland Security and the Border Patrol.

There were approximately four million illegal immigrants living in the United States, when Congress last addressed the issue of comprehensive immigration reform in 1986. Today, it is estimated there are more than 11 million. Those immigrants who enter our country illegally, and those who employ them, disrespect the rule of law. We live in a time where terrorists are challenging our borders, and we simply cannot allow people to pour into the United States undetected, undocumented, and unchecked. Americans are right to demand better border security and better enforcement of immigration law.

Further, American employers need to take responsibility when determining the immigration status of individuals they hire. Too often illegal immigrants attempt to enter the United States chasing the promise of a job, only to risk survival and face even death crossing the desert or never find a job at all. In the interest of cheap labor, unscrupulous employers look the other way when employees provide fraudulent citizenship documents. This hurts both American workers and immigrants whose sole aim is to work hard and get ahead. It is imperative that we implement a simple, fool-proof and mandatory mechanism for all employers to check the legal status of new hires.

However, I believe to further protect our nation, we must contend with scores of illegal immigrants living and working within our borders without our knowing their identity or background. That is why we need to develop a guest-worker program that will replace the flow of illegals with a regulated stream of legal immigrants who enter the United States after a series of checks. This would enhance our nation's security by protecting our citizens from terrorists that may exploit the openness of our society.

If we hope to bring the 11 million undocumented immigrants out into the open, we must give them a reason. This means granting those with jobs interim legal status to work with the opportunity, after paying penalties and without amnesty to eventually earn citizenship. We can do this by imposing a hefty fine for having illegally entered out country, and by forcing the undocumented to go to the back of the line in their pursuit of citizenship. The interim status should only apply to those already here, so as to not open the door for others.

We cannot claim to have dealt with the problems of illegal immigration if we ignore the illegal resident population or pretend that they will leave voluntarily. Some of the proposed ideas in Congress provide a temporary legal status and call for deportation, but fail to answer how the government would successfully deport this large amount of people. If temporary legal status is granted, but the policy says these immigrants are never good enough to become Americans, then the policy makes little sense. However, without solving the porous border or incentive problem the population of illegals will only grow.

Successful, comprehensive immigration reform can be achieved by combining strong border control legislation with a realistic workplace and an earned citizenship program. These three pillars of immigration reform are found in three separate pieces of legislation I have cosponsored -- the Strengthening America’s Security Act (S. 1916), the Employment Verification Act (S. 1917), and the Secure America and Orderly Immigration Act (S. 1033). Please know that, I will work with my Senate colleagues to ensure that the ideas included in these important pieces of legislation are incorporated into the immigration reform process.

Again, thank you for sharing your views. If you have any additional questions or concerns, please feel free to contact me. In addition, for more information about issues and activities important to Florida, please sign up for my weekly newsletter at http://martinez.senate.gov.

Sincerely,

Mel Martinez
United States Senator"

I like what I am hearing, all but the guest worker program. If we "need" such a program it should be severely limited to a few industries.

9:31 AM  

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