Abolishing America (contd.): The Economic Eviction Of White Men

White males are suffering from
long-term deterioration in lifetime income growth and
job security, according to a study, "Divergent
Paths
," just released by the

Russell Sage Foundation
.

The study by four academic
sociologists and statisticians compares the wage growth
and job security of young white males who entered the
labor market in the late 1970s and early 1980s with the
experience of a previous generation of young white males
who entered the labor market in the mid-1960s. The study
finds that 90 percent of young white male workers can
expect to have lower lifetime wage growth than the
previous generation.

The study concludes that “upward
mobility has deteriorated for young white men who
entered the labor market in the 1980s.” The change is
significant and permanent, comprising “a massive
downshift in earning standards” that has hollowed out
the middle class and left large numbers of white males
stuck in low wage service jobs that have no future.

The trend is especially adverse for
the 66 percent of the work force that never attains a
four year college degree. However, even college
graduates are experiencing difficulties. Although better
off relative to other young white males, 65 percent of
college graduates who began working in 1980 have
experienced less income growth than college graduates
who began their careers in the mid-1960s.

The researchers have no
satisfactory explanation for their worrisome findings.
They point fingers at deregulation, corporate
downsizing, decline of unionization, and a stagnant
minimum wage and wander off into leftwing drivel about
“the imbalance of power that is inherent in a capitalist
system.”

A better explanation of the study`s
conclusion that the majority of white males “can no
longer expect stable careers that lead to a solid,
family-sustaining wage” is found in race and gender
quotas, massive unskilled immigration, and in the way the
U.S. practices "free trade."

The study shows that women
“experienced real wage growth during this period” when
“earnings for male workers stagnated and even declined.”
In order to protect against U.S. Department of Justice (sic)
lawsuits, every U.S. corporation has had to
institutionalize race and gender quotas that discriminate against
“over-represented” white males. These quotas have
adversely impacted the upward mobility of white males.

Massive unskilled immigration from
third world countries greatly increases the labor supply
and undercuts the wages of unskilled and low-skilled
white males.

Formerly, the U.S. practiced
traditional trade. We imported what others produced best
and exported what we produced best. Some traditional
trade still takes place, but the U.S. also practices a
new kind of trade.

U.S. companies export unfinished
and semi-finished materials to their

factories in Mexico
and

China
, where Mexican and Chinese workers add value.
The goods are then exported back to the U.S. for sale to
the American consumer. In this type of trade the U.S.
will always run a deficit because what we “export” has
lower value than what we “import.”

When goods cross borders they are
measured as international trade, but such movements are
really intra-firm trade that allows cheaper Mexican and
Chinese labor to be substituted for U.S. labor. U.S.
companies produce for the American consumer with foreign
labor.

The result is a decline in higher
paying jobs in the U.S. as companies move higher
value-added operations abroad to take advantage of
cheaper labor.

A recent Cornell University study,
“The Impact of U.S.-China Trade Relations on Workers,
Wages and Employment,”

[PDF 136 pages]
concludes that U.S. companies shift
their production to China in order to produce for the
U.S. market with cheap Chinese labor. The study
estimates that a minimum of 760,000 U.S. jobs have been
lost to China since 1992.

“An increasing percentage of the
jobs leaving the U.S. are in higher-paying industries
producing goods such as bicycles, furniture, motors,
compressors, generators, fiber optics, clocks, injection
molding and computer components.” The shift in
production is so extensive that the U.S. has run a trade
deficit with China in advanced technology goods since
1995.

China requires U.S. firms that want
access to China`s low cost labor to relocate Research &
Development operations

to China
along with factories, thus replacing
American designers, engineers and scientists with
Chinese ones.

White American males face
deteriorating career prospects because: U.S. companies
substitute foreign labor for U.S. labor, civil rights
policy requires discrimination against white males in employment and
promotion, and massive immigration drives down wages in
construction, services and other employment. [See


“Jobless White Males”
by
Peter Brimelow in Forbes. Link requires
registration.]

The end result of the job transfers
will be a U.S. population too poor to purchase the
products produced by cheap Chinese and Mexican labor.

Paul Craig Roberts is the author of

The Tyranny of Good Intentions : How Prosecutors and
Bureaucrats Are Trampling the Constitution in the Name
of Justice
.

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