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Government Perpetuates the Underclass
by
Sheldon Richman,
January 25, 2006
Sundays New York Times ran a depressing story about a new study showing that day laborers, most of whom are illegal aliens, are often stiffed by employers. Of course, theyre already working in dangerous low-paid construction jobs.
The Times reported, Forty-nine percent
of those interviewed said that in the previous two months
an employer had not paid them for one or more days
work. About 20 percent said they had been injured,
many of those missing work as a result.
The 2,226 workers interviewed in 20 states and
Washington, D.C., earned a median of $10 an hour
and $700 month, said the Times. The study
said that only a small number earned more than $15,000 a
year. Three-fourths were in the country illegally,
from Mexico and Central America.
I cant vouch for the findings or the method used by
the professors who conducted the study. But the story it
tells is hardly startling. According to the authors,
Day laborers continue to endure unsafe working
conditions, mainly because they fear that if they speak
up, complain, or otherwise challenge these conditions,
they will either be fired or not paid for their
work. One of the authors, Abel Valenzuela Jr. of
the University of California, Los Angeles, said,
This is a labor market that thrives on cheap wages
and the fact that most of these workers are undocumented.
Theyre in a situation where theyre extremely
vulnerable, and employers know that and take advantage of
them.
Here is the key to the matter. People who fear the
Immigration and Naturalization Service (INS) cannot press
their claims if they are ripped off. They have no
recourse against theft, fraud, or even physical abuse
because they have no standing before the law. Their
nonperson status shapes the market in which they attempt
to earn a living. A labor environment in which workers
are easily victimized, with little prospect for redress,
is likely to attract victimizers as employers.
If those workers come to the United States and work as
day laborers under those conditions, we can conclude that
that, in their eyes, is their best option. But that is
not the end of the matter. Their best option
currently is determined by a constellation of adverse
government controls and prohibitions that make them
powerless and subject them to exploitation. When someone
being mugged gives up his money rather than his life, he
too is taking his best option. The essential
question is why such a pitiful option is best.
Removing the INS as a threat to these workers would go a
long way toward improving their situation. People coming
here to make better lives should be welcomed, not
persecuted. But more can be done, such as removing all
government barriers to competition, work, and
self-employment, such as licensing, regulations, and taxes,
which reduce peoples options and help to perpetuate
the underclass.
Finally, in the nineteenth and early twentieth centuries,
many low-income workers, including immigrants, created a
safety net of insurance services through fraternal
societies, or lodges. People paid dues when they were
well, and drew benefits when they were too sick or
injured to work. Whats more, lodge members often
contracted with doctors to provide affordable medical
care for themselves and their families. This was so
successful that organized medicine, backed by the
government, cracked down on physicians engaged in
lodge practice in order to keep incomes from
falling. Later the fraternal societies safety-net
functions were squeezed out first by state governments
and then by the federal government when politicians and
bureaucrats saw career opportunities and power in the
tax-financed welfare state.
Thus self-help based on voluntarism and fellow-feeling
was replaced with impersonal bureaucracies subject to
changing political winds. The reader can decide whether
the change was for good or ill.
Sheldon Richman is senior fellow at The Future of Freedom Foundation, author of Tethered Citizens: Time to Repeal the Welfare State, and editor of The Freeman magazine. Send him email.
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