Home > Europe, Politics, Social Trends, Yumm-Rika > America: Labor Economy & Imports

America: Labor Economy & Imports


In 1923-1924 US passed racist laws to specifically bar Indian, Chinese and the Japanese immigrants to US. Less than 30-years later, the US overturned these laws. Enlightenment! Liberalism? .

So, is this why US labor force has been stagnant for nearly five years? Immigration down to the US?  | Pulitzer prize winning cartoon by Steve Breen; in The San Diego Union-Tribune, on April 5, 2008

So, is this why US labor force has been stagnant for nearly five years? Immigration down to the US? | Pulitzer prize winning cartoon by Steve Breen; in The San Diego Union-Tribune, on April 5, 2008

Desert Bloc societies of West Asia and the West, have historically, been labor-importers due to the anti-family and anti-marriage design of their societies.

Why labor shortages

The biggest importer of labor in the last 200 years has been the USA.

After the US Civil War, slave-imports dried up. In the last 100-years, as sources of slave-labor from Africa and indentured-labor from India dried up, US was able to suck out surplus labor from Europe.

Not Quite A Labor Of Love

As European migrants arrived by shiploads into the US, gates to the US for Chinese, Indians (and East Europeans) clanged shut.

The Supreme Court of the USA (SCOTUS) found ways and means to justify racism, exclusion in the USA. In the Thind case (United States v. Bhagat Singh Thind, 261 U.S. 204 (1923)), SCOTUS upheld GOTUS laws to disallow Indians from entering the USA.

Soon after Thind’s legal challenge, the GOTUS rushed other laws to limit immigration. Asian exclusion laws ( Immigration Act of 1924, or Johnson–Reed Act, including the National Origins Act, and Asian Exclusion Act (Pub.L. 68–139, 43 Stat. 153, enacted May 26, 1924)) stopped Chinese and Japanese from entering the USA.

Costs & Price Of War

In WWII, Europe lost between 2 crores-4 crores (mostly) males. This had two major effects on the Western economies.

One is that immigration from Europe to US dried up. In the next seven years (Immigration and Nationality Act of 1952), GOTUS removed all restrictions on Asian immigration into the USA. It also removed racial segregation practices and laws, thus increasing Black labor availability for US industry.

The second big change was in women’s empowerment. With more than 2 crore people fighting WWII, another 2 crore dead, severe labor shortages led to a boom in women’s employment. Employment led to organisation, organization helped to improve earnings. With earnings came empowerment. Women’s Suffrage, the 50-year struggle in the West, for women’s right to vote finally happened after WWII.

California … Here I Come!

Immi-grunts are by their very nature, opportunistic.

Looking to exploit better economic opportunities, instead of creating opportunities. They can serve a useful function in reducing labor-price imbalances. Seeking to maximize their own earnings, immi-grunts are seen in a not very kindly light by the host nation.

So, why has labour growth stagnated for five years?  |  Graphic source & courtesy - economist.com

So, why has labor growth stagnated for five years? | Graphic source & courtesy – economist.com

The slide in the unemployment rate – a full percentage point since September – owes mostly to rising employment (as measured by the household survey). But the decline in unemployment has been helped by the failure of the labour force to grow more quickly. While it has fluctuated considerably, the labour force is only slightly larger now than in December, 2007, when the recession began. Yet in January, 2008, the Congressional Budget Office reckoned it would be some 5m larger by now, or 159.5m (see chart).

What happened to those 5m people? Why aren’t they showing up as unemployed? Some are discouraged workers or other people who want to work but aren’t counted as unemployed; but I reckon they account for only one third of the missing 5m.

So what about the others? Is it early retirement? Disability? Returning to school? Illegal immigrants returning home (or failing to enter the country in the first place)? Or were they never there to start with – the labour force simply isn’t growing as quickly as we thought it should, for demographic or other reasons? Whichever it is, it is a troubling sign that our economic potential could be a lot lower than we thought just a few years ago. And that’s the real bad news.

via America’s labour force and the economy: The missing five million | The Economist.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: