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Bernie Sanders’ Anti-Foreign Crankery – Article by Daniel Bier

Bernie Sanders’ Anti-Foreign Crankery – Article by Daniel Bier

The New Renaissance HatDaniel Bier
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A Vesuvius of Tribalism and Economic Illiteracy

At Sunday’s Democratic presidential debate, Bernie Sanders attacked American trade with Mexicans, Chinese, Vietnamese, and presumably all other foreigners who might try to steal our jobs. Sanders harangued Hillary Clinton,

NAFTA, supported by the Secretary, cost us 800,000 jobs nationwide, tens of thousands of jobs in the Midwest. Permanent normal trade relations with China cost us millions of jobs.

Look, I was on a picket line in early 1990’s against NAFTA because you didn’t need a PhD in economics to understand that American workers should not be forced to compete against people in Mexico making 25 cents an hour.

… And the reason that I was one of the first, not one of the last to be in opposition to the TPP is that American workers … should not be forced to compete against people in Vietnam today making a minimum wage of $0.65 an hour.

Look, what we have got to do is tell corporate America that they cannot continue to shut down. We’ve lost 60,000 factories since 2001. They’re going to start having to, if I’m president, invest in this country — not in China, not in Mexico.

First, let’s note his dodgy job numbers. As Dan Griswold noted in 2011, in response to a similar claim about jobs “lost” from the “trade deficit” with Mexico,

In the first five years after NAFTA’s passage, 1994-98, when we could have expected it to have the most impact, the U.S. economy ADDED a net 15 million new jobs, including 700,000 manufacturing jobs.

Behold, the horror unleashed on US manufacturing jobs by trade with Mexico:nafta-manufacturing

In fact, since NAFTA went into effect in 1994, total US employment has increased by 28 million jobs. Even if we buy the dubious claim that NAFTA “cost us 800,000 jobs” over the last 22 years, this amounts just 36,000 jobs a year.

As Griswold noted, even in good times, 300,000 Americans file for unemployment each week. The US economy creates and destroys more than 15 million jobs every year. This alleged displacement amounts to less than one day’s worth of job losses.

It’s true that, in the long-run, manufacturing jobs have been in decline in the United States. But this is not because manufacturing is in decline. The myth (promoted by the other nationalist blowhard in the race) that United States “doesn’t make stuff anymore” is not just wrong — it couldn’t be further from the truth.

Real US manufacturing output is the highest it has ever been. Simply put, the US makes more stuff than ever.

manufacturing-indexHow can this be? Because manufacturing productivity — the amount of value added per hour worked — has gone up dramatically in recent decades. Manufacturing employment is declining because of automation; a US factory worker today can add a lot more value per hour than one in 1970.

manufacturing-employees-output-per-hour

It’s simply not true that trade devastated the US economy and wiped out millions of jobs. Employment has shifted within the US economy, out of industry into service jobs, and manufacturing has shifted around the globe, aligning production with the comparative advantages of each country’s labor and capital markets.

The resentment stoked by nationalists like Trump and Sanders is based on a nonsensical proposition, a mirage of high-paying blue collar jobs stolen by conniving foreigners, which we could reclaim if only we had the will to wage a trade war.

But the machines and global production chains are here to stay, and the jobs being done in Vietnam and China for fifty cents an hour are on the extreme low end of the value-added chain — which should be obvious, when you think about it, since they pay so little. (On the back of every iPhone is a short economics lesson on this point: “Designed by Apple in California. Assembled in China.”)

Do we really want to “bring those jobs back”? Do we envision a future where the American middle class is sewing textiles in sweatshops for a dollar an hour? Of course not. Americans today likely wouldn’t do those jobs at any wage, but especially not at the wages paid to low-skilled workers in developing Asian and Latin American countries. Those jobs only exist at those wages; at higher wages, they are scarcer, higher-skilled, and more capital intensive.

True, we could make t-shirts and Happy Meal toys in the United States, but we’d be doing it with far, far fewer workers and a lot more capital. Instead of 30 workers at fifty cents an hour, it’d be one person with a machine for $20 an hour.

The real difference would be that everyone would be poorer as a result: consumers paying higher prices, foreigners working in worse conditions and for less money, and American resources being diverted away from where they are most productive.

This is where economic ignorance stops being morally neutral and becomes a real threat to the life and well-being of the poor, especially in the developing world.

Not content to merely keep Mexicans from working in the United States (where, thanks to US capital and infrastructure, they could earn three or four times more than they make in Mexico), Bernie Sanders now objects to the right of Mexicans to work in Mexico, if they dare to sell goods and services to Americans — or, God forbid, try to compete with American firms.

For a champion of the poor like Sanders, there’s a double irony here, in that poor Americans are already much wealthier than poor Mexicans, and that tariffs also make goods more expensive for native consumers, disproportionately hurting the poorest Americans. Not only are poor Mexicans made worse off, by losing access to the US market and thus losing jobs, but poor Americans are also made worse off by having less disposable income, which is thus not spent elsewhere in the economy to sustain other American jobs.

And this is just the first order effects of closing off trade with Mexico. When the Mexican government inevitably retaliates, US exports to Mexico (which totaled $236 billion in 2015) will also be devastated and more jobs will be lost. And of course, simply multiply this orders of magnitude for China, Vietnam, and every other country on the nationalistic hit list.

Who gains from this? In the long run, nobody, which is why (after decades of gradual reform) we finally got relatively free trade with our closest neighbors, signed into law by a liberal Democrat. But in the short run, a few US corporations and labor unions would benefit from trade tariffs — at the expense of both poor foreigners and poor Americans as a whole.

(For those keeping score, this makes it an ironic hat trick for Sanders, whose tirades against free trade and open borders are laced with fear-mongering about “corporations.”)

Finally, let us ponder Sanders’ Alice-in-Wonderland solution to the imagined ills of free trade:

Look, what we have got to do is tell corporate America that they cannot continue to shut down. We’ve lost 60,000 factories since 2001. They’re going to start having to, if I’m president, invest in this country — not in China, not in Mexico.

Did I say Alice in Wonderland? I meant Atlas Shrugged. Ayn Rand was justly accused of having unbelievable, one-dimensional stereotypes, but sadly, American politics seems to have the same problem.

It’s anyone’s guess how Sanders imagines he could force factories not to close and order companies to stay in the United States, but the “you can’t shut down” solution is almost directly lifted from “Directive 10-289,” the order that Rand’s antagonists use to try to “stabilize” the economy:

All workers, wage earners and employees of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment… All industrial, commercial, manufacturing and business establishments of any nature whatsoever shall henceforth remain in operation…

Faced with economic decline, the government believed that the only option was to stop the decline, rather allowing people to go where they choose, buy what they choose, and make what they choose. “What it comes down to is that we can manage to exist as and where we are, but we can’t afford to move!” archvillain Wesley Mouch exclaims. “So we’ve got to stand still… We’ve got to make those bastards stand still!”

When Rand first published this in 1957, this was hyperbole about the fear of change, the reductio ad absurdum of the argument for keeping things as they are. Now, it’s an applause line for mainstream presidential candidates.

Daniel Bier is the site editor of FEE.org He writes on issues relating to science, civil liberties, and economic freedom.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Does America Ban Immigration? – The Land of the Free Isn’t, For Most People – Article by David Bier

Does America Ban Immigration? – The Land of the Free Isn’t, For Most People – Article by David Bier

The New Renaissance Hat
David Bier
August 3, 2015
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The United States has a de facto ban on immigration. We can debate about whether this prohibition is necessary, but its existence is undeniable. Other than a few exceptions for family members, refugees, and the highly-educated, it is virtually impossible to come to the United States to live and work legally.

Historically, America held its doors open to all. But in the 1920s, a coalition of unions, progressives, and eugenicists combined to slam them shut. Within a year of passing Alcohol Prohibition, America also banned almost all forms of immigration, cutting immigration by nearly 80 percent.

Alcohol regained its legal status, but immigration never quite recovered.

Today, the government lets in almost a million immigrants each year, but this impressive-sounding number misses the entire legal, historical, and global context of our immigration system. We must compare it to the number who would come if only they could do so legally — and the reality is that most types of immigration are entirely prohibited. To deny the ban on immigration because it has exceptions is like denying Alcohol Prohibition because it allowed communion wine.

The half million people apprehended at the border each year and the 11 million unauthorized immigrants in the country are the clear evidence of this prohibition. The massive immigration underground points to an obvious yet largely ignored fact: If there was a legal way for them to come, they would have taken it. But, trouble is, one doesn’t exist.

The drastic shortage of visas is evident in the unbelievably long wait times for permanent residency. For certain categories, the wait is decades. For employment-based visas, certain Indian and Chinese workers will wait more than a decade. For Mexico, three different family-based categories have wait times over 18 years. There’s northward of 4.3 million people in these lines alone.

Yet these impossible lines hide a deeper problem: most would-be immigrants have no line to stand in at all.

The reality is this: 92 percent of legal immigrants are either 1) immediate family members of US citizens or permanent residents, 2) refugees or asylees, or 3) college graduates — and over 80 percent those needed an advanced degree or at least $500,000 to invest in projects in the United States.

This leaves less than 65,000 visas for everyone else. More two-thirds of these come through a lottery system for which 11 million people applied last year. People in most of the largest countries in the world, including India, China, and Mexico, aren’t even eligible to apply.

This legal flow amounts to barely 7 percent of the average number of immigrants apprehended at the border each year since 2004 (and, of course, that doesn’t count those who crossed successfully, or those who entered and overstayed their visas, or those who would come if there was a legal opportunity). For people without a college degree or a close American relative, the Statue of Liberty’s “Golden Door” is almost completely shut.

Meanwhile, PhDs, scientists, movie stars, pro-athletes, and other elites have a number of different work visas available to them. These allow them to live and work year-round in the United States.

By contrast, there is no work visa that allows lesser-skilled laborers to live and work year-round in this country. Unsurprisingly, this lesser-skilled demographic is disproportionately represented in the illegal population, 85 percent of whom lack a college degree.

Another reason we know that illegal immigration is being driven by the lack of a legal alternative is because of what happened when the government allowed foreign workers to come and go legally.

Thanks to a fluke of history, America had a brief period when it experimented with freer migration between the United States and Mexico. In the 1950s and ‘60s, the Bracero guest worker program let in about 5 million Mexican farmworkers. From 1956 to 1965, when the program was at its height, the number of unauthorized immigrants at the border averaged just 41,000, compared to over 436,000 a year in the prior decade.

After it was terminated in 1966 by another union-led coalition, illegal immigration never again fell to such low levels — not even for a single year, let alone an entire decade. By the 1980s, a million or more immigrants were routinely being caught by Border Patrol every year.

Supporters of the ban on immigration will say that America is at its breaking point, that we’re overwhelmed, that we can’t “handle” any more immigrants. But this fear is groundless: As a share of its population, America admitted four times as many immigrants each year in the early 1900s as it did in 2014. For a century from 1830-1929, immigration was twice as high as a share of the population as it was in the last two decades.

In absolute terms, America admits more immigrants than any other country, but relative to its size, US immigration levels are far lower than many Western countries. Controlling for population, CanadaAustralia, and New Zealand all have higher levels of immigration than America today — even as high as the United States in the early 20th century — and they have not collapsed into chaos or poverty.

Immigration prohibition is real. Millions of people cross the border illegally (and thousands of businesses hire them illegally) for the same reason bootleggers had to brew booze in bathtubs. And, for the same reasons we repealed Alcohol Prohibition, we should also finally end America’s ban on immigration.

David Bier is an immigration policy analyst at the Niskanen Center. He is an expert on visa reform, border security, and interior enforcement. From 2013 to 2015, he drafted immigration legislation as senior policy advisor for Congressman Raúl Labrador, a member of the House Judiciary Committee’s Subcommittee on Immigration and Border Security. Previously, Mr. Bier was an immigration policy analyst at the Competitive Enterprise Institute.  

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Immigration to the United States from 1870 to 1920 (2004) – Essay by G. Stolyarov II

Immigration to the United States from 1870 to 1920 (2004) – Essay by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
July 21, 2014
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Note from the Author: This essay was originally written in 2004 and published in six parts on Associated Content (subsequently, Yahoo! Voices) in 2007.  The essay earned over 109,000 page views on Associated Content/Yahoo! Voices, and I seek to preserve it as a valuable resource for readers, subsequent to the imminent closure of Yahoo! Voices. Therefore, this essay is being published directly on The Rational Argumentator for the first time.  ***
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~ G. Stolyarov II, July 21, 2014
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An Overview of Immigration to the United States from 1870 to 1920

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From 1870 to 1920, immigrants came to America from all over the world and made irreplaceable contributions. Though frequently discriminated against, most immigrants fought through the difficult times and moved forward to build a better life for themselves. It was not an easy task, but immigrants had a drive to start anew and were determined to live the American Dream and complete the work that dream required.
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Emma Lazarus’s poem, “The New Colossus,” describes with remarkable accuracy some of the actual motives that immigrants had during the time that this poem was written to inaugurate the Statue of Liberty. Such a diverse influx of people had never occurred in US history prior to this time period. Immigrants arrived not only from northern and western European nations, such as Germany, France, and Ireland, but also from Italy, Eastern Europe, Canada, and the Far East. Their motives for seeking a new home were as varied as the places from which they had come.

Numerous immigrants were indeed “struggling to breathe free” as they faced religious and political persecution in their homelands. Jews in Russia were, for example, met with severe government-sanctioned anti-Semitism. The czar’s henchmen would often stage pogroms which destroyed what little property and security Russian Jews were allowed to have. In addition, the draft in Russia was merciless and would often take 25 years of a man’s life away to fight in fruitless wars with outdated weapons and brutal discipline. To many Jews and people in similar situations, America symbolized a place where their freedom of religion and occupation could be exercised to a greater extent than anywhere else in the world.

A large portion of immigrants originated from the rural areas of their home countries, and were especially hard-hit by agricultural troubles. Events all over the world much like potato blight in Ireland that triggered an earlier Irish mass migration led people to move away from densely populated and famine-wrecked countries to a more spacious and plentiful America. Many small farmers and craftsmen were unable to find jobs in their homelands, since their original occupations had been rendered obsolete by large-scale mechanized production while the skilled labor market was already too full for them in Europe.

In general, either the difficulties at home or the prospects in the U.S. were so immense as to compel immigrants to leave many belongings behind and expose themselves to an entirely different language and culture in the U.S. A large number did not intend for the change to be permanent; about three-tenths merely came to earn a large enough amount of money to return home in greater financial security. Yet, whatever their intent, the immigrants profoundly shaped America’s history, economy, and culture.

The Journey to America and Immigrant Processing Upon Arrival

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Many immigrants experienced journeys to the United States that were similar in numerous aspects. Conditions during the voyage and upon arrival had improved from prior eras, but were still uncomfortable and lacking in many respects.

The development of passenger vessels made the journey easier, cheaper, and faster for many immigrants. By the 1870s, steam powered ships replaced sailing ships. They were bigger, faster and safer. Immigrants in the early 1800s had to endure voyages averaging 40 days, depending on weather; by the 1900’s, the average voyage was only one week long.

In order to account for and regulate immigration, the US government established immigrant processing centers on both the East and West Coasts. 70% of the European immigrants beginning in 1855 would be dropped off at Castle Garden on Manhattan Island and pass a series of examinations. In 1892, a new immigrant center at Ellis Island was built to replace Castle Garden. On the West Coast, immigrants, mostly Chinese or Japanese, arrived through Seattle or Angel Island in San Francisco.

The increased convenience of immigration did not, however, imply a level of comfort for the immigrants anywhere near modern standards. Poor sanitation and food, as well as diseases such as cholera and typhus, were still common on the trans-Atlantic liners.

Immigrants who could only afford the minimal third-class fees of about $30 were referred to as “steerage passengers.” The name came from the part of the ship, the steerage, where they were kept and which provided the cheapest possible accommodations. It was crowded below deck, and steerage passengers were seldom allowed to go up for fresh air. The trans-Atlantic shipping companies had not yet learned to provide efficient basic services, such as food, and often fed passengers nothing but soup or stew, and sometimes bread, biscuits, or potatoes.

Many immigrants had to wash themselves with salt water while drinking stagnant water that was stored in dirty casks. At the root of these problems was a mindset on the part of many of the companies that considered the immigrants “human cargo.” These same companies would often ship American-made goods to Europe on the return trip, and could not yet see the essential distinction between transporting products and people. They would learn with time.

Even after the tough voyage, immigrants were not guaranteed entry to America. About 250,000 people (2% of all immigrants) were sent back home. 1st and 2nd class passengers were inspected on the ship, but 3rd class passengers had to go to Ellis or Angel Island for screening, waiting about three to five hours in line and undergoing inspections of both a medical and legal nature.

Officials at Ellis Island also did something that is not commonly done today. When they could not pronounce an immigrant’s name, the immigration inspectors thought that this gave them the prerogative to change the name to something less difficult. Names like “Andrjuljawierjus” might be simplified to “Andrews” or something similar.

How Immigrants Lived Upon Arriving in the United States

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From 1870 to 1920, most immigrants arriving in the United States found themselves facing current material poverty, but immense prospects for opportunity and enrichment. But how did they live in the meantime, as they endeavored to achieve the American Dream?

After arrival, immigrants spread themselves throughout the country. Most of them settled in cities, as it was easiest to find jobs there as well as locate persons of similar background or ideology to oneself and cooperate with them economically. Cities that served as the gateways to immigration also came to house many immigrants. In New York City in 1910, for example, three-fourths of the population consisted either of immigrants or children of immigrants.

For lack of abundant funds, many immigrants in large cities settled in mass tenement and apartment complexes that were affordable but often exhibited uncomfortable living conditions. Many rooms did not have windows, and were ten feet wide at most. Filth, dampness, and foul odors were common inconveniences. Yet for many immigrants, this was only a transitional stage in their lives, but still something unpleasant that left a mark on their experiences.

Many immigrants were able to persevere through initial hard times because of support and guidance from relatives. Immigrant families often served as the basic economic unit; they provided assistance to their members and pooled resources together.

The location of immigrants’ relatives would also often affect their destination. If an immigrant had an uncle or cousin in a particular neighborhood, he would be more likely to settle there himself and maintain close ties. Cooperative arrangements, such as boarding with relatives or native middle and working-class families were common transitional stages for many young immigrants.

But these useful ties did not in any way bog immigrants down in one place or one mode of life for a long time. Mobility was high: the families who inhabited a certain neighborhood were unlikely to still be there in 5 or 10 years. Though ethnic districts existed, most white immigrants lived in ethnically mixed neighborhoods, testifying to the fact that families served to spur on economic opportunity and change, rather than counteract it.

Due to productivity and prudence in saving a large portion of the money they earned, many of the new immigrants were able to quickly rise to middle-class status, and some even made vast fortunes during their lifetimes. While they endured initially unpleasant conditions, these immigrants ultimately saw such circumstances as stepping stones toward a better life than they could get anywhere else in the world.

Immigrant Contributions to American Life and Culture

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Immigration from 1870 to 1920 brought to the United States a vast quantity of both ordinary and extraordinary people: individuals who, through their search for greater opportunity and prosperity, dramatically altered and improved American life and culture.

Samuel Gompers, an immigrant from England, was head of the American Federation of Labor beginning in 1886. He advocated moderate labor reforms but was a staunch opponent of socialism and coercive action on the part of unions. His memoirs give an account of his own life and experiences as an immigrant.

Ironically, however, Gompers himself came to oppose the mass wave of immigration, which he perceived to threaten the workers of his union. Many of the nativist arguments that advocated restricting foreign immigration had come from him and his associates, despite the obvious double standard that this implied.

On the opposite side of the immigration debate was an immigrant from Germany, political cartoonist Thomas Nast. His cartoons in the magazine Harper’s Weekly ridiculed nativist sentiments and advocated fair treatment and equal rights for new arrivals to the country.

Some of the most famous and lasting contributions to American culture have been made by brilliant immigrants like the composer Irving Berlin from Russia. Two of his most famous hits were “God Bless America” and “White Christmas.”

During the first decade of the twentieth century, Frank Capra came to America from Italy as a little boy. He would grow up to be a six-time Oscar-winning director who would produce some of the best-known films of the 1930s, including “It’s a Wonderful Life” and “Mr. Smith Goes to Washington.”

It is important to keep in mind that, were it not for these individual immigrant innovators, American culture would not have attained some of its distinct elements. Rather than “invading” the American way of life, immigrants, in all spheres of activity, brought about great progress.

Though some immigrants were great creators and innovators, over half identified themselves as unskilled laborers or domestic workers upon arrival. They still had a role to play in the US economy.

Jobs were plentiful, and, especially in a society where living standards rose across the board, there were many jobs for which most natives were overqualified. Those jobs could be taken by immigrant workers, saving businesses money on wages while still giving those workers five or ten times what they would have received in their home countries.

Work in dry-cleaning stores, newsstands, grocery stores, and machine shops, attracted many new arrivals and served as a first step on their upward economic journey. So great was the need for people to operate these jobs, that many of the sparsely populated states actively worked to promote immigration by offering newcomers guaranteed jobs and land grants.

Immigrant Contributions to American Prosperity and Unjust Persecution of Immigrants by Nativists

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Immigrants from 1870 to 1920 made possible America’s economic growth and rise to prominence as a global power. Yet these newcomers also faced unjust persecution from nativists who sought the aid of government to stifle further immigration.

During the past two centuries, small businesses comprised over three-fourths of America’s economy. Small businesses were a sector most crucial and unique to America, as, with scant initial capital, any intelligent man with a profitable idea could quickly rise to financial security.

The small-business field was, without exaggeration, dominated by immigrants. In every U.S. census from 1880 onward, immigrants accounted for a greater percentage of small business owners than natives. These businesses greatly expanded the country’s productivity and job openings, creating jobs for immigrants and natives alike.

Moreover, immigration fueled industrialization. In 1910, foreign-born persons comprised about 53% of the national industrial labor force. So not only did immigrants carry the small business field; they played an indispensable role in large industries as well. One can say with certainty that America would not have reached the status of a global economic power in those days were it not for the contributions of immigrants.

Despite these overt contributions to American prosperity, immigrants encountered a great deal of political regulation and outright opposition from nativist groups allied with the legislature.

Not all legislation discouraged immigration; earlier bills, such as the Homestead Act of 1862 helped attract newcomers by promising anyone who would develop a plot of land in the West for five years ownership of that land. Many Europeans took advantage of this opportunity.

But on the Pacific coast, Chinese immigrants did not fare so well. Bigoted sentiments and laws that began during the Gold Rush era culminated in the Chinese Exclusion Act of 1882, wherein Chinese immigration was forbidden for ten years. This law would be renewed and rendered permanent in the twentieth century and would last until 1943. In 1890, the Federal Government assumed control of immigration, implying that it would be easier to establish nationwide controls for immigration and enforce any initiative that would restrict the inward flow of people.

A slight gain for immigrants, especially those of Asian descent, was the Supreme Court decision of United States v. Wong Kim Ark, in 1898. The Supreme Court ruled that children born in America of Asian parents must be granted citizenship. Denying this citizenship would violate the 14th Amendment clause that classified all persons born on American soil as citizens and would jeopardize the rights of native-born whites with immigrant parents.

The court realized that discriminating against some immigrants could easily be extrapolated to discrimination against large portions of the American population, and that immigrants and America were inseparably linked.

Yet the nativists who controlled the other two branches of the US government continued to push their exclusionist schemes. The Literacy Act of 1917 required arrivals to be literate in some language, therefore cutting off the flow of many of the unskilled and uneducated workers that would have otherwise taken the jobs that no one else wanted.

The death blow to immigration came in 1924, when the National Origins Act set a quota of 150,000 total immigrants per year, disproportionately distributed to England and Northern Europe, with few slots allotted to southern and Eastern Europe and none for Asians. The act ended mass immigration into the U.S. until its repeal in 1965.

Nativist Xenophobia and Persecution of Immigrants

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Immigrants to the United States from 1870 to 1920 were not always welcomed. Many faced unjust and even violent persecution from well-connected nativist groups, who often acted out of nothing more than ignorance and prejudice.

No one expressed and condemned the irrationality of the xenophobia exhibited by the nativist groups against immigrants more vividly than Thomas Nast. His cartoon, ironically titled, “Pacific Chivalry: Encouragement to Chinese Immigration,” portrays Nast’s response to some of the most extreme forms of racism and nativism in the country at the time.

Nast_Pacific_Chivalry

You see a California native whipping and pulling the hair of a defenseless Chinese immigrant. In the inscription in the background, you can barely see written some of the things that aid the abuser in his cruelty. The inscription reads: “Courts of justice closed to Chinese; extra taxes to Yellowjack.”

What does this cartoon suggest about the means that Chinese and many other immigrants had to resist invasions of their rights and dignity? They had just about no means whatsoever. Nast recognized that many of these productive and peace-loving individuals were barred from resisting their inferior condition by small, well-organized activist groups connected with the legislature and prepared to use all means necessary, from the law to vigilante violence, to damage the immigrants. The American people were not opposed to immigration, but many powerful and well-connected elites of the time were.

Indeed, the xenophobia against immigrants sometimes reached horrific extremes. There was substantial discrimination against the Chinese in terms of wages and employment conditions in the West, but this passage by historian John Higham refers to some of the more brutal attacks on their freedoms.

“No variety of anti-European sentiment has ever approached the violent extremes to which anti-Chinese agitation went in the 1870s and 1880s. Lynching, boycotts, and mass expulsions…harassed the Chinese.” (Higham 1963)

Of course, in order to make these actions seem more tolerable in their eyes, nativists tried to justify them by conceiving of Asian immigrants as inferior beings. They could back down somewhat and grant some degree of equality to foreign whites, but this would enable them to play a powerful race card which contained some vicious stereotypes. Anti-immigrant stereotypes were spread by many labor unionists, especially Samuel Gompers, who wrote that “both the intelligence and the prosperity of our working people are endangered by the present immigration. Cheap labor… ignorant labor…takes our jobs and cuts our wages.”

There are numerous fallacies in Gompers’s claims. Immigration creates jobs rather than destroying them. Immigrants did not steal jobs, but rather took work that few natives wanted. Half of immigrants were indeed unskilled, but the other half consisted of people just as, if not more than, educated and innovative than the native population. Indeed, without immigrants, American economic prosperity would have been cut by more than half.

It seems, however, that some debates in American history linger on for centuries. The immigration debate is one of them. Currently, as immigration restrictions in the past thirty years have been laxer than previously, we are experiencing a new massive influx of foreigners into this country. The benefits that these immigrants bring are even more obvious today than ever, but the nativists are still around to attempt to impose stricter quotas and border-control measures. They are often still guided by the same fallacious arguments about immigrants stealing jobs or polluting the country’s culture.

Novelist Stephen Vincent Benet offered a powerful response to nativism, relevant both during his time and today: “Remember that when you say, ‘I will have none of this exile and this stranger for his face is not like my face and his speech is strange,’ you have denied America with that word.”

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http://www.historychannel.com/ellisisland/index2.html
http://www.archives.gov/publications/prologue/fall_2000_us_canada_immigration_records_1.html

Right to Work is Part of Economic Liberty – Article by Ron Paul

Right to Work is Part of Economic Liberty – Article by Ron Paul

The New Renaissance Hat
Ron Paul
December 18, 2012
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Many observers were surprised when Michigan, historically a stronghold of union power, became the nation’s 24th “Right to Work” state. The backlash from November’s unsuccessful attempt to pass a referendum forbidding the state from adopting a right to work law was a major factor in Michigan’s rejection of compulsory unionism. The need for drastic action to improve Michigan’s economy, which is suffering from years of big-government policies, also influenced many Michigan legislators to support right to work.

Let us be clear: right to work laws simply prohibit coercion. They prevent states from forcing employers to operate as closed union shops, and thus they prevent unions from forcing individuals to join. In many cases right to work laws are the only remedy to federal laws which empower union bosses to impose union dues as a condition of employment.

Right-to-work laws do not prevent unions from bargaining collectively with employers, and they do not prevent individuals from forming or joining unions if they believe it will benefit them. Despite all the hype, right-to-work laws merely enforce the fundamental right to control one’s own labor.

States with right-to-work laws enjoy greater economic growth and a higher standard of living than states without such laws. According to the National Institute for Labor Relations Research, from 2001-2011 employment in right to work states grew by 2.4%, while employment in union states fell by 3.4%! During the same period wages rose by 12.5% in right to work states, while rising by a mere 3.1% in union states. Clearly, “Right to Work” is good for business and labor.

Workers are best served when union leaders have to earn their membership and dues by demonstrating the benefits they provide. Instead, unions use government influence and political patronage. The result is bad laws that force workers to subsidize unions and well-paid union bosses.

Of course government should not regulate internal union affairs, or interfere in labor disputes for the benefit of employers. Government should never forbid private-sector workers from striking. Employees should be free to join unions or not, and employers should be able to bargain with unions or not. Labor, like all goods and services, is best allocated by market forces rather than the heavy, restrictive hand of government.  Voluntarism works.

Federal laws forcing employees to pay union dues as a condition of getting or keeping a job are blatantly unconstitutional. Furthermore, Congress does not have the moral authority to grant a private third party the right to interfere in private employment arrangements. No wonder polls report that 80 percent of the American people believe compulsory union laws need to be changed.

Unions’ dirty little secret is that real wages cannot rise unless productivity rises. American workers cannot improve their standard of living simply by bullying employers with union tactics. Instead, employers, employees, and unions must recognize that only market mechanisms can signal employment needs and wage levels in any industry. Profits or losses from capital investment are not illusions that can be overcome by laws or regulations; they are real-world signals that directly affect wages and employment opportunities. Union advocates can choose to ignore reality, but they cannot overcome the basic laws of economics.

As always, the principle of liberty will provide the most prosperous society possible. Right-to-work laws are a positive step toward economic liberty.

Workplace Freedom and Right-to-Work Laws – Article by Edward W. Younkins

Workplace Freedom and Right-to-Work Laws – Article by Edward W. Younkins

The New Renaissance Hat
Edward W. Younkins
December 14, 2012
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On Tuesday December 11, 2012 Michigan, the birthplace of the nation’s organized labor movement, became the country’s 24th right-to-work state. This short excerpt from pages 81-83 of my 2002 book, Capitalism and Commerce, explains the propriety of right-to-work laws.

Before the Norris-La Guardia and National Labor Relations Acts (NLRA) in the 1930s, the employment relationship consisted of voluntary exchange contracts between employers and employees. A return to the common law of contracts, property rights, and tort would permit each person to decide if he wanted to contract with or join any union for representation services. Under such an arrangement there would be competitors among labor organizations and the possibility of having workers represented by a variety of unions and other workers having no representatives. Instead, they would bargain for themselves as individuals.

Before these acts, an employer had the common-law right to fight the unionization of his company. The employer could enter into “yellow dog contracts” with the employees in which the two parties would agree not to have a union—one reason for such contracts was the desire of the employees to avoid the loss of work and wages that would occur during strikes. Because these agreements were voluntary, they must have been to the mutual benefit of both parties. In addition, before the 1930s, the employer was free to attempt to persuade workers that unionization would not be to their benefit. Also, in his efforts to gain loyalty to his firm, the employer could refuse to hire workers who wanted to engage in union-related activity. The employer also had the common-law right to establish a company union. Then, of course, the company always had the right to voluntarily agree to hire workers who belonged to a specific union.

Unions were subject to the antitrust laws before Norris-La Guardia—not so thereafter. The National Labor Relations Act then destroyed the common-law right of an employee to join a union of his own choosing or to represent himself. After such New Deal legislation, unions operated with the help of laws and court decisions to force employees to join them to gain a monopoly of particular jobs. Unions were free to use violence (picketing) against competing workers and intimidation against the employers through the strike.

After a union has been certified as an exclusive bargaining agent, it is presumed to have majority support indefinitely (unless there is a decertification election) even if all the workers who originally chose it are no longer with the company. Section 8(a) 3 of the National Labor Relations Act empowers unions with monopoly bargaining privileges to agree with employers that all workers represented by the unions must join the union or at least pay union dues. Section 14(b) of the Act permits states to forbid such arrangements. Twenty-one right-to-work states have chosen to do so by banning all forms of union security. In these states workers can be forced to have a union (selected by majority vote) represent them, but they cannot be forced to join or pay dues to any unions. However, in the twenty-nine other states, security clauses are permitted. In these states, workers who do not want to be represented by a union (but are forced to because of monopoly representation) may be compelled to pay for the unwanted representation or be fired. Nonunion (i.e., union-free) workers who don’t want to become members of a union may be forced to pay dues (or their equivalent) as a requirement of their employment.

If a union security agreement specifies a union shop then the worker must join the union after a probationary period. However, if it specifies an agency shop, the worker does not have to join the union but must pay dues or their equivalent. In an agency shop, workers do not have to become members, but they all must pay dues or “service fees” to the unions that represent them. Unions employ a free-rider argument to justify this coercion. They argue that, without the imposition of forced dues, some workers would choose to receive the benefits of union representation but not pay for them. The goal of compulsory union dues is apparently to prevent free riders. Of course, if a union simply represented those who wanted it, there would be no free-rider problem. The union’s free-rider problem stems from section 9-A of   the National Labor Relations Act that requires that a certified union be the exclusive representative that bargains with the employer for all workers, both union and non-union. Unions that have gained monopoly bargaining privileges by majority vote must represent all workers, whether those workers want it to or not. The unions created the free-rider problem themselves when they persuaded the authors of the NLRA to permit monopoly bargaining. They now use monopoly bargaining as an excuse for forced dues!

By empowering labor unions the government did away with the old common-law rules of contract, property, and tort that applied equally to all involved parties. They were replaced with a coercive legal framework designed to help labor union leaders attain their goals. As a result, common-law courts were replaced by administrative tribunals (e.g., the National Labor Relations Board) which could be relied upon to implement prounion policies. The government thus promoted unions by failing to apply laws of equal applicability to unions and employers alike, used its power to support unions, and allowed unions to use force in pursuit of their ends.

Dr. Edward W. Younkins is Professor of Accountancy at Wheeling Jesuit University. He is the author of Capitalism and Commerce: Conceptual Foundations of Free Enterprise [Lexington Books, 2002], Philosophers of Capitalism: Menger, Mises, Rand, and Beyond [Lexington Books, 2005] (See Mr. Stolyarov’s review of this book.), and Flourishing and Happiness in a Free Society: Toward a Synthesis of Aristotelianism, Austrian Economics, and Ayn Rand’s Objectivism [Rowman & Littlefield Pub Incorporated, 2011] (See Mr. Stolyarov’s review of this book.). Many of Dr. Younkins’s essays can be found online at his web page at www.quebecoislibre.org. You can contact Dr. Younkins at younkins@wju.edu.