Friday, February 29, 2008

Myth 2 - Immigrants Compete With Low-Skilled Workers and Drive Down Wages

  1. Wages have gone down since the 70s because of increasing economic inequality: increasing inequality created demand for immigrant workers and spurred immigration. Businesses oppose regulations that give workers rights in order to keep wages low
  2. Racism contributes to inequality and reluctance for governments to give immigrants more rights
  3. Immigrant workers
    1. Immigrant workers have few rights and are willing to work long hours for low wages under poor conditions because:
      1. many immigrants are working temporarily to save money to go back to their home country
      2. Some immigrants who are working long hours for low wages are still better off than in their home country
      3. Some immigrants plant roots and bring their families over and establish lives here. As they do, they are less willing to work under poor conditions and they demand rights.
    1. Government regulations continue to exploit a dual-labor market, a "primary" market that is regulated (safety, wages, hours, overtime, unions) and a "secondary" market that is unregulated. Businesses like it this way because it keeps wages low, products cheap and profits high. This is especially true now in the services industries (housecleaning, etc.). Racism and profits keeps this secondary market alive.
  1. Changing regulations
    1. Decisions and policies by the US government is the primary factor that determines wage levels and global and local inequalities have allowed economies to sustain dual-labor markets.
    2. Over the years, laws have been changed so that immigrant workers who have been here legally for decades were suddenly illegal with no laws available to make them legal.

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