Illegal Immigrants Not To Blame For Unemployment
Memo to Alabama: George W. Bush was right.
The former president, making a too-late push for what could have been a game-changing, bipartisan immigration reform law, noted that immigrants now here illegally make an important contribution to the economy. They do the jobs Americans can’t or won’t do.
Opponents disagreed, arguing that the undocumented workers were stealing jobs that should go to Americans—jobs like picking fruit for low wages in the hot sun. That was a questionable claim when the economy was better, but as Alabama farmers are now learning, Bush’s statement is correct even now, when Americans are working for far less pay in jobs for which they are way over-qualified, just to have a job.
In June Alabama passed a draconian immigration law—most of which is still in place, even while courts decide its constitutionality—that has driven many immigrants from the state. The result has not been a wave of grateful unemployed teachers and skilled workers, eager to be underpaid for difficult manual labor. Instead, at the San Francisco Chronicle reports:
The agriculture industry suffered the most immediate impact. Farmers said they will have to downsize or let crops die in the fields. As the season’s harvest winds down, many are worried about next year.
In south Georgia, Connie Horner has heard just about every reason unemployed Americans don’t want to work on her blueberry farm. It’s hot, the hours are long, the pay isn’t enough, and it’s just plain hard.
“You can’t find legal workers,” Horner said. “Basically, they last a day or two, literally.”
There are a number of lessons here. One is that there are surely elected officials and people in the business community who are using the recession to roll back all kinds of hard-fought rights for workers, cutting pay, eliminating job security, and drastically reducing or zeroing out benefits. Another is that while Americans don’t want to do farm work for low wages, they also don’t want to pay higher prices for food harvested by workers paid a decent salary. That’s not an argument for abusing undocumented workers, but it’s also not an argument for scaring foreigners out of the state so locals can have their bad jobs.
What’s remarkable is that some of the same people who scream about illegal immigrants taking American jobs here in the United States are quieter when it comes to foreigners abroad taking what could be American jobs here. Outsourcing of manufacturing jobs increases corporate profits, but adds to the unemployment rate domestically. Those are jobs American will do. If that anti-immigrant worker crowd is genuinely concerned about retaining U.S. jobs, they should focus on bringing back the outsourced jobs—not evacuating the foreign workers.
By: Susan Milligan, U. S. News and World Report, October 24, 2011
Partisanship: Blame Grover Norquist, Not The Founders
Everyone recognizes that Washington is not working the way it should. This has led some on the left, like Harold Meyerson, to question whether the Founders “screwed up.”
Many on the right, meanwhile, are promoting radical changes to our constitutional system. They talk about a version of a Balanced Budget Amendment, which would require a super-majority for most changes in financial policy. This would enshrine in our Constitution the right’s do-little government philosophy.
But the Constitution is not the problem. If we want to get Washington working again, we should listen to the Founders — not blame them for problems of our own making or change the ground rules of the system of government they bequeathed to us.
True, the Founders established a deliberative democracy, with a series of checks and balances designed to prevent the majority from running roughshod over the rights of political minorities. But these checks and balances have served our nation well.
The problem is not the democratic system bestowed upon us by George Washington, Alexander Hamilton and James Madison. The problem is the additional obstacles to action – the filibuster, hyper-partisanship, and special interest pledges – that our Founders would have found abhorrent.
Our Founders struck a delicate balance between the promotion of majority rule – the essential predicate for a democratic government of “We the People” – and the desire to protect minority rights and prevent the “tyranny of the majority.” The Constitution is designed to delay and temper majority rule while allowing a long-standing majority to get its way.
So, for example, the Constitution staggers the election of senators so that only one third of the Senate can change hands in any one election. As a result, it usually takes more than one election for any one party to gain a governing majority.
Modern politicians have placed layer after layer of lard on this deliberative system of government, ultimately producing the gridlock now plaguing Washington. The Senate Republicans now use the filibuster rule as a virtual requirement. Every piece of legislation must enjoy a super-majority of 60 votes in the Senate — meaning a determined minority can permanently stop the majority from getting its way.
President George Washington, in his farewell address to the nation, warned about just such “alterations” to our constitutional system. He said this would “impair the energy of the system.”
Washington also decried political parties. He passionately warned the nation against any effort “to put in the place of the delegated will of the nation the will of a party.”
While political parties were forming and solidifying even as Washington uttered these words, our modern politicians have enshrined hyper-partisanship through tricks like the “majority of the majority” rule, whereby the House speaker will only bring to the House floor legislation that has the support of the majority of his political party.
It is hard to imagine a more powerful example of the precise party-over-country danger Washington warned us about.
Washington may have had the likes of Grover Norquist in mind when he warned that some men “will be enabled to subvert the power of the people and to usurp for themselves the reins of government.”
Even anti-tax Republicans, like Sen. Tom Coburn (R-Okla.) and Rep, Frank Wolf, have now decried the oversized role Norquist’s no new taxes pledge played in forcing the debt ceiling showdown and helping to prevent any solution that would have included new revenues. Coburn and others have warned their colleagues against putting Norquist’s “no–tax” pledge over their oath to support the Constitution and to serve “we the people” – not Norquist or any other special interests.
Washington today has serious problems, but we should not blame the city’s namesake for them. Rather, politicians of both parties should support a reform agenda designed to remove from our political system the modern procedural obstacles that have produced our current gridlock.
Maybe even in these divided political times we can all agree that when casting blame for what ails Washington, the fault it not with George Washington and our other Founding Fathers. It’s with the causes of our current gridlock – including figures like Norquist and his no-tax pledge.
By: Doug Kendall, Opinion Contributor, Politico, October 22, 2011
The GOP’s Latest Tax Gimmickry: Soak The Poor
It’s one of the strangest things in our politics: The only “big” ideas Republicans and conservatives seem to offer these days revolve around novel and sometimes bizarre ways of cutting taxes on rich people.
Given all the attention that Herman Cain’s nonsensical and regressive 9-9-9 tax plan has received, the Republican debates should have as their soundtrack that old Beatles song that droned on about the number nine.
Now, Texas Gov. Rick Perry hopes to pump up his campaign with a supposedly bold proposal to institute a flat tax, which would also deliver more money to the well-off. Perry plans to outline his proposal this week, but he has already touted it as a sure-fire way of “scrapping the 3 million words of the current tax code.”
There is absolutely nothing new about this idea, and candidates who pushed flat taxes in the past saw their campaigns flat-line, most prominently businessman Steve Forbes in 1996 and again in 2000. Politically, the idea falls apart rather quickly when middle-income voters realize that its main effect is to cut taxes on the financially privileged while usually raising them on Americans who have more modest incomes.
Note to Perry: Voters are shrewd in figuring out whether tax proposals really benefit them. That’s why raising taxes on millionaires — the exact opposite of what Cain and Perry want to do — wins support from a broad majority.
But the more interesting question is: Why are today’s Republicans so enthralled by tax gimmicks? Their party, after all, was once innovative in thinking about affirmative uses of government. The Grand Old Party instituted the Homestead Act and created land-grant colleges, the interstate highway system, student loans, the Pure Food and Drug Act and even a prescription drug benefit under Medicare.
It was Richard Nixon who supported laws establishing the Environmental Protection Agency and the Occupational Safety and Health Administration. In signing the OSHA bill, Nixon called it “one of the most important pieces of legislation, from the standpoint of 55 million people who will be covered by it, ever passed by the Congress of the United States, because it involves their lives.” Yes, government regulations save lives, a view now heretical in the GOP.
Republicans have boxed themselves into a rejection of both their own traditions and the idea that government can do any good. Thus they have confined themselves to endless fiddling with the tax code. Almost everything conservatives suggest these days is built around the single idea that if only government took less money away from the wealthy, all our problems would magically disappear.
There is a history to this. The Republican fixation on taxes dates to the mid-1970s, when supply-side economics began taking hold. The late Jude Wanniski, an editorial writer for the Wall Street Journal who campaigned indefatigably on behalf of lower marginal tax rates, came up with the “Two Santa Clauses” theory. He argued that if Democrats earned support by giving voters benefits through government programs, Republicans should play Santa by giving people tax cuts.
Wanniski sold his tax ideas to Jack Kemp, one of the most ebullient political figures of his generation, who in turn sold them to Ronald Reagan. Reagan made Kemp’s 30 percent tax cut (co-sponsored with Sen. Bill Roth) a centerpiece of his 1980 campaign. The political scientist Wilson Carey McWilliams perfectly described the result in a 1981 essay. “After years of learning that ‘you don’t shoot Santa Claus,’ ” he wrote, “the Republicans decided to nominate him.”
But Republicans have a problem now. In the Kemp-Reagan days, they were selling across-the-board tax cuts. Most of their benefits flowed to the rich, but almost everyone got a piece. Today, many Republicans complain resentfully that less prosperous Americans don’t pay enough in taxes — overlooking the fact that citizens who don’t pay income taxes still shell out a significant share of their earnings in payroll, sales and (directly or through their rents) property taxes.
Reagan’s optimism has thus been replaced by crabby put-downs of the less affluent. Perry said it directly in his announcement speech: “We’re dismayed at the injustice that nearly half of all Americans don’t even pay any income tax.” Considering the other injustices in our society, this seems an odd and mean-spirited obsession.
“Tax the poor” is a lousy political slogan. That’s why Cain’s 9-9-9 plan and Perry’s flat tax are doomed to fail. Among conservatives, Santa Claus has given way to Scrooge.
By: E. J. Dionne, Opinion Writer, The Washington Post, October 21, 2011
Social Inequality: The Paradox Of The New Elite
It’s a puzzle: one dispossessed group after another — blacks, women, Hispanics and gays — has been gradually accepted in the United States, granted equal rights and brought into the mainstream.
At the same time, in economic terms, the United States has gone from being a comparatively egalitarian society to one of the most unequal democracies in the world.
The two shifts are each huge and hugely important: one shows a steady march toward democratic inclusion, the other toward a tolerance of economic stratification that would have been unthinkable a generation ago.
The United States prides itself on the belief that “anyone can be president,” and what better example than Barack Obama, son of a black Kenyan immigrant and a white American mother — neither of them rich.
And yet more than half the presidents over the past 110 years attended Harvard, Yale or Princeton and graduates of Harvard and Yale have had a lock on the White House for the last 23 years, across four presidencies. Thus we have become both more inclusive and more elitist.
It’s a surprising contradiction. Is the confluence of these two movements a mere historical accident? Or are the two trends related?
Other nations seem to face the same challenge: either inclusive, or economically just. Europe has maintained much more economic equality but is struggling greatly with inclusiveness and discrimination, and is far less open to minorities than is the United States.
European countries have done a better job of protecting workers’ salaries and rights but have been reluctant to extend the benefits of their generous welfare state to new immigrants who look and act differently from them. Could America’s lost enthusiasm for income redistribution and progressive taxation be in part a reaction to sharing resources with traditionally excluded groups?
“I do think there is a trade-off between inclusion and equality,” said Gary Becker, a professor of economics at the University of Chicago and a Nobel laureate. “I think if you are a German worker you are better off than your American equivalent, but if you are an immigrant, you are better off in the U.S.”
Professor Becker, a celebrated free-market conservative, wrote his Ph.D. dissertation (and first book, “The Economics of Discrimination”) to demonstrate that racial discrimination was economically inefficient. American business leaders seem to have learned that there is no money to be made in exclusion: bringing in each new group has simply created new consumers to court. If you can capture nearly three-quarters of the economy’s growth — as the top 1 percent did between 2002 and 2006 — it may not be worth worrying about gay marriage or skin color.
“I think we have become more meritocratic — educational attainment has become increasingly predictive of economic success,” Professor Becker said. But with educational attainment going increasingly to the children of the affluent and educated, we appear to be developing a self-perpetuating elite that reaps a greater and greater share of financial rewards. It is a hard-working elite, and more diverse than the old white male Anglo-Saxon establishment — but nonetheless claims a larger share of the national income than was the case 50 years ago, when blacks, Jews and women were largely shut out of powerful institutions.
Inequality and inclusion are both as American as apple pie, says Jerome Karabel, a professor of sociology at the University of California, Berkeley, and author of “The Chosen,” about the history of admission to Harvard, Yale and Princeton. “I don’t think any advanced democracy is as obsessed with equality of opportunity or as relatively unconcerned with equality of condition,” he says. “As long as everyone has a chance to compete, we shouldn’t worry about equality. Equality of condition is seen as undesirable, even un-American.”
The long history of racial discrimination represented an embarrassing contradiction — and a serious threat — to our national story of equal opportunity. With Jim Crow laws firmly in place it was hard to seriously argue that everyone had an equal chance. Civil rights leaders like the Rev. Dr. Martin Luther King Jr. were able to use this tradition to draw support to their causes. “Given our culture of equality of opportunity, these kinds of rights-based arguments are almost impossible to refute,” Professor Karabel said. “Even in today’s conservative political climate, opponents of gay rights are losing ground.”
The removal of traditional barriers opened up the American system. In 1951 blacks made up less than 1 percent of the students at America’s Ivy League colleges. Today they make up about 8 percent. At the same time, America’s elite universities are increasingly the provinces of the well-to-do. “Looking at the data, you see that the freshman class of our top colleges are more and more made up of the children of upper- and upper-middle-class families,” said Thomas J. Espenshade of Princeton, a sociologist.
Even the minority students are more affluent, he noted; many of them are of mixed race, or the children of immigrants or those who benefited from affirmative action.
Shamus Khan, a sociologist at Columbia and the author of “Privilege,” a book about St. Paul’s, the prep school, agreed that there had been a change in the composition of the elite. “Who is at elite schools seems to have shifted,” he said. “But the elite seem to have a firmer and firmer hold on our nation’s wealth and power.”
Still the relatively painless movement toward greater diversity should not be dismissed as mere window dressing.
“After the immigration reform of 1965, this country went from being the United States of Europe to being the United States of the World. All with virtually no violence and comparatively little trauma,” Professor Karabel said. This is no small thing, particularly when you compare it to the trauma experienced by many European societies in absorbing much lower percentages of foreign-born citizens, few of whom have penetrated their countries’ elites.
Moreover, inequality has grown partly for reasons that have little or nothing to do with inclusion. Almost all advanced industrial societies — even Sweden — have become more unequal. But the United States has become considerably more unequal. In Europe, the rights of labor have remained more central, while the United States has seen the rise of identity politics.
“There is much less class-based organization in the U.S,” said Professor Karabel. “Race, gender and sexual orientation became the salient cleavages of American political life. And if you look at it — blacks, Hispanics and women have gained somewhat relative to the population as a whole, but labor as a category has lost ground. The groups that mobilized — blacks, Hispanics, women — made gains. But white male workers, who demobilized politically, lost ground.”
One of the groups to become mobilized in response to the protest movements of the 1960s and early 1970s was the rich. Think tanks dedicated to defending the free-enterprise system — such as the Cato Institute and the Heritage Foundation — were born in this period. And it is not an accident that the right-wing advocate Glenn Beck held a national rally on the anniversary of King’s “I Have a Dream” speech in front of the Lincoln Memorial. Republicans now defend tax cuts for the richest 2 percent using arguments and language from the civil rights movements: insisting that excluding the richest earners is unfair.
Removing the most blatant forms of discrimination, ironically, made it easier to justify keeping whatever rewards you could obtain through the new, supposedly more meritocratic system. “Greater inclusiveness was a precondition for greater economic stratification,” said Professor Karabel. “It strengthened the system, reinvigorated its ideology — it is much easier to defend gains that appear to be earned through merit. In a meritocracy, inequality becomes much more acceptable.”
The term “meritocracy” — now almost universally used as a term of praise — was actually coined as a pejorative term, appearing for the first time in 1958, in the title of a satirical dystopian novel, “The Rise of the Meritocracy,” by the British Labour Party leader Michael Young. He warned against the creation of a new technocratic elite in which the selection of the few would lead to the abandonment of the many, a new elite whose privileges were even more crushing and fiercely defended because they appeared to be entirely merited.
Of the European countries, Britain’s politics of inequality and inclusion most resemble those of the United States. Even as inequality has grown considerably, the British sense of economic class has diminished. As recently as 1988, some 67 percent of British citizens proudly identified themselves as working class. Now only 24 percent do. Almost everybody below the Queen and above the poverty line considers himself or herself “middle class.”
Germany still has robust protections for its workers and one of the healthiest economies in Europe. Children at age 10 are placed on different tracks, some leading to university and others to vocational school — a closing off of opportunity that Americans would find intolerable. But it is uncontroversial because those attending vocational school often earn as much as those who attend university.
In France, it is illegal for the government to collect information on people on the basis of race. And yet millions of immigrants — and the children and grandchildren of immigrants — fester in slums.
In the United States, the stratification of wealth followed several decades where economic equality was strong. The stock market crash of 1929 and the Great Depression that followed underscored the excesses of the roaring ’20s and ushered in an era in which the political climate favored labor unions, progressive taxation and social programs aimed at reducing poverty.
From the 1930s to the 1960s, the income of the less affluent Americans grew more quickly than that of their wealthier neighbors, and the richest 1 percent saw its share of the national income shrink to 8.9 percent in the mid-1970s, from 23.9 percent in 1928. That share is now back up to more than 20 percent, its level before the Depression.
Inequality has traditionally been acceptable to Americans if accompanied by mobility. But most recent studies of economic mobility indicate that it is getting even harder for people to jump from one economic class to another in the United States, harder to join the elite. While Americans are used to considering equal opportunity and equality of condition as separate issues, they may need to reconsider. In an era in which money translates into political power, there is a growing feeling, on both left and right, that special interests have their way in Washington. There is growing anger, from the Tea Party to Occupy Wall Street, that the current system is stacked against ordinary citizens. Suddenly, as in the 1930s, the issue of economic equality is back in play.
By: Alexander Stille, The New York Times Sunday Review, October 22, 2011
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