Yesterday, the Democratic candidate for governor in Texas, Farouk Shami, stated that "Hispanic labor is essential to the Texas economy." To the extent Texas relies upon cheap labor, he is right. Nevertheless, given the contentious nature of debate over immigration, particularly in a state like Texas, perhaps that was not a statement someone running for governor of Texas should make. It is true that without immigrant labor, illegal immigrant labor in particular, many products and services would become more expensive. It is not just that business parks, homeowners and golf courses would have to pay more to keep their lawns manicured. It would affect all Texans. For example, it would cost the state more money to maintain roads if the companies they contracted with could not rely on immigrants (legal and otherwise) to pour asphalt and lay drainage pipe in the blistering Texas sun for minimal wages.
It is argued that many homes and apartment complexes might not be built if paying minimal wages to the construction workers could not be relied upon. Those that would be built would require using cheaper material in the absence of cheap labor. (Often, cheaper materials are used even in the presence of cheap labor). Years ago, when I worked construction and built houses, there was an abundance of white workers to be found. This was because the pay was good. Once some companies decided to increase profits by lowering costs, not only were cheaper materials sought, but cheaper labor as well. Once one company did so, the other companies were obliged to do so to stay competitive. It was not long until cheap material and immigrant labor were found at nearly every building site. Many workers making $10 to $15 an hour were replaced my immigrants making $5. The houses built were of inferior quality with inferior material. Homeowners were able to acquire a house cheap, but that was because it was a cheap house. Nearly every step taken to reduce the costs of those houses became apparent to the homeowner in a few years. The houses may have been affordable, but they were not very good.
Many roads would not be built or paved without cheap labor. Even the state relies upon the cheap labor supplied by contractors who use immigrants. Immigrant labor, illegal or otherwise, is cheap because it is abundant. If a laborer refuses a job because he feels the pay is insufficient, another will gladly take it. And therein lies the problem. Many whites, and others for that matter, will not pour asphalt, mow golf courses, build houses, or generally do any other laborious or unpleasant task for the wages that are usually offered. Immigrants, especially illegal immigrants will. A business that needs, or wants cheap labor can find it. There is absolutely no incentive to pay workers more. Wages stay low. Immigrants stay employed. Products and services stay affordable. Everyone wins. Well, not everyone.
The downward pressure immigration puts on wages may keep prices low, but it also keeps wages low. It also keeps people unemployed and poor that would not be so otherwise. When some whites refuse a job, objecting to the paltry wages they are being offered, they are often characterized as haughty, lazy, or pampered. To the people who object at being asked to pour asphalt, work construction, or toil in factories for near poverty wages, an employer can simply mention that if they are unwilling to do the work for the wages offered, he can easily find someone who will. The person he will find will likely be an immigrant. It is not unlikely the immigrant he finds will be an illegal immigrant.
Against the benefit to the economy that cheap labor offers is set the unemployment and poverty caused by that cheap labor. "Cheap labor" is simply another way of saying low wages. One benefit of cheap labor is cheap products and cheap services. The other benefit is higher profits. There would seem to be a cycle at work. Cheap pay leads to low income. Low income demands cheap products and services. In order to produce cheap products and provide cheap services, one must pay low wages. Competition serves to keep the cycle going.
If many whites will not accept wearisome and unpleasant jobs under the wages and conditions offered, it is likely because they are just not desperate enough. It was the desperation of the characters in the novels of Dickens that led them to lives toiling at the miserable jobs under the horrible conditions for the paltry wages that they did. It is the desperation of immigrants that lead them to accept the jobs and wages they do. As a very successful business owner, Shami is no doubt familiar with how demanding and selfish workers can be. Especially the white ones.
Shami continued his blundering when he stated that "You don't find white people who are willing to work in factories." Curiously, back in the day when people could earn good money working in factories you could find many whites working in them and many more who wanted to. Maybe many white workers just haven't become desperate enough or are too slow in abandoning their hopes and sense of pride to take difficult and menial jobs at the wages offered. Maybe when they become desperate enough and their pride is broken they will once again be competitive. Until then, white workers will be scorned by "business men" like Shami for their haughty and pampered ways.
Many suffer when wages are kept low, not just the workers. Households suffer when they struggle to meet their needs. Consumers suffer because the quality of products and services decline. Business suffers because their markets are truncated. Communities suffer because their residents frequently require more services than they can pay for. But businessmen like Shami not only thrive, they get rich. It is not good policy to chastise a large sector of the electorate for wanting more for their labor. It may be good business to keep costs down and wages low, but unless the benefits of good business are spread around, it is not really good business at all. Certainly not for workers. Moreover, it is bad politics.
It is not that Americans, white or otherwise, are lazy or effete. It is not difficult to find Americans willing to work in factories, pave roads or shingle roofs. But it is difficult to find Americans willing to do those things for $5.00 an hour. That is the problem.
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