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Henry Blodget

Henry Blodget

Posted: December 21, 2007 01:49 PM

Want to Start an Unskilled Labor-Intensive Business Right Now? No, You Don't


Thank goodness our government is suddenly obsessed with dealing with America's plague of illegal aliens. There is clearly nothing more important right now than making sure we prevent people who happen to have born in other countries from doing jobs people who happen to have been born here don't want.

But this all-important crackdown doesn't exactly make you want to run out and start a labor-intensive business, does it? Certainly not if you're up to speed on the heart-warming situation at New York grocery delivery company, Fresh Direct.

Last week, federal immigration officials notified Fresh Direct that they were launching an investigation of the company's workers. Fresh Direct told its workers about the investigation -- and, not surprisingly, dozens of the workers ran for the doors. Meanwhile, the workers had been discussing the possibility of unionizing. So now the Teamsters union is accusing Fresh Direct of trying to bust the proto-union by terrorizing employees about the federal investigation.

Any good news here?

Not much.

No matter what happens, Fresh Direct loses good workers, the workers lose jobs, and Fresh Direct's costs (and, therefore, prices) go up, hurting customers. Fresh Direct's remaining employees presumably get a raise at some point, and maybe better benefits, but only by forcing the company to fire human beings who were willingly doing the same jobs for less.

If Fresh Direct is/was paying its document-challenged employees slave wages, fine. If Fresh Direct is/was making a piggish profit and intentionally employing only people who have no legal standing on which to complain, fine. If, however, Fresh Direct is/was simply providing employment opportunities to people who chose to take them, they don't deserve what they're getting. It's time companies like Fresh Direct stopped getting blamed for the fact that citizens of other countries want to do jobs that people who were born here don't.

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01:22 PM on 12/31/2007
You used the word "slavery" only once, but you should not have. This is the real issue at the root of what we euphemistically call "undocumented workers." It is precisely what was supposed to have been banned in Lincoln's time: "slavery and involuntary servitude."

Let's face it: the people who hire illegals very much do not want them to become legals. A man or woman who is "officially 'not there,'" and "on the lam," will do anything you tell him to do without question. You can put the screws to him any way that you like, and feel free to "justify" it any way that you like. That man is still a slave.

We should not be punishing the illegals who are merely caught in this system, but we should be viciously punishing the employers who "employ" them. We do this to protect the men and women who are caught in this system, not to turn them out into the cold. Once again, if we do not enforce our own laws, no one has any of those laws' very important benefits.
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inthedesert
Those who never question will fall for anything.
09:59 AM on 12/30/2007
The whole bottom line for companies that hire illegals is MORE PROFITS. That's it......by hiring these people that are in our country ILLEGALLY these companies can keep costs down by not offering basic health insurance, etc. This only means more money for the owners of the company. If these companies paid a decent wage that Americans could live on, offered health insurance and other benefits, then I would imagine they would have no problem finding people to work for them LEGALLY. If an employer gets busted by the Feds for hiring people who are not in our country legally, that's really just too bad.....isn't that how the laws are supposed to work? Companies that hire illegals should be prosecuted to the full extent of the law and/or shut down.
08:14 AM on 12/30/2007
Has anyone ever heard of a "labor shortage" that did not have upward pressure on wages?


Well that is precisely what these pro global idealogues want you to think with their lies on jobs "americans won't do" and "outsourcing benefits workers" and "skilled labor shortages"


These lies are all non sequitors to any one who paid attn in econ 101 or has any smattering of common sense
08:01 AM on 12/30/2007
This article couldn't be more wrong. It commits the same old tired obfuscation of "legal" and "illegal" iimmigrations, and repeats the same old tired pro globalist meme "jobs americans won't do" that doesn't complete the sentence with "at the third world wages employers wish to pay".

It really bothers me of the so called "progressive" movement that they are so pro illegal immigration - we have more illegals pooring in than we had legal immigrants most of the past decade - how is our economy and way of life supposed to sustain that? And deliberately pits minorities and low income workers in a death spiral competition for the low wage jobs. Unfortuately the left is on the wrong side of this issue and are "misunderestimating" the impact this will have on the next election - this is an issue that is a hot button in middle america.
02:05 PM on 12/29/2007
So, our factory jobs have been sent to China or Mexico.

More and more of our white-collar jobs have been outsourced to India.

And now, our manual labor jobs have all been taken by illegal immigrants, thanks to greedy employers who prefer to pay slave wages instead of a living wage to Americans.

Doesn't leave many jobs for the next generation of Americans, does it?
02:02 PM on 12/29/2007
Under the current system, of greedy corporations hiring illegal immigrants at slave wages, the only one who benefits is the CEO, who can give himself a bigger bonus for cutting costs.

The illegal immigrants don't really benefit, since there's little hope of them ever getting ahead or joining the middle class.

Amercan blue-collar workers don't benefit, with their wages stagnant thanks to competition from immigrants.

The middle class doesn't benefit either, with their communities flooded with a new permanent under-class of people who are illiterate and have a tendency toward crime.
02:00 PM on 12/29/2007
"..people who happen to have born in other countries from doing jobs people who happen to have been born here don't want."

You forget just one thing; illegal immigrants want to do jobs people here don't want --- AT SLAVE WAGES!!

If employers paid a living wage, they might find that magically, Americans would be willing to do the work! What a concept!
04:30 PM on 12/27/2007
Henry obviously has no idea what the hell he's talking about. The FreshDirect fight had absolutely nothing to do with off-shoring. It had everything to do with a company that hired an anti-union law firm to intimidate workers and then, surprise, immigration shows up and some of the leaders supporting the union were undocumented and fired.

This is nothing but worker intimidation at its most base. To suggest otherwise is simply ignorant.
05:40 AM on 12/27/2007
Henry,

I am broadly in agreement with you on your comments.

The discussion concerning immigration is tinged with an over-agressive prosecutorial tone. Punish industry. Punish immigrants.

We need a new framework to manage the issue. The economic reality is that workers will continue to migrate to the US to improve their living conditions and companies seeking low-skilled employees will continue to hire them.

It is economically rational for both parties to pursue this course. The exogenous impact is that prices remain low, lives are improved, and that society as a whole benefits.

A sensible program that registers and taxes workers and possibly provides them with a path to citizenship is what is required.

Guest workers who engage in crime or who violate the terms of their agreements would face deportation. Companies that hire undocumented workers would be heavily fined.

We can forecast growth rates and labor requirements to establish quotas for low-skilled workers annually.

An annual lottery could be held in which applicant workers must provide proper documentation to enter and be assigned to certain regions of the country with preferences for workers seeking to join their families already in the US.

This process helps to avoid an overconcentration of immigrants in one particular region. It also enables workers better access to employment and manages the size of the labor pools in particular markets.

Companies would have to register to access to workers in the labor pool. Having received access to the pool, employers will be less inclined to hire undocumented workers.

Undocumented workers, recognizing the companies will not hire them because they are unregistered, would return to their homes or be deported as there would be no economic benefit to stay.

The winners of the lottery would have 6 months to enter the US and register at designated registration points.

The border situation in the US is shameful, but it exists primarily because the legal alternatives for migration remain focused on European immigration rather than the more pressing reality of regional immigration.
08:19 PM on 12/26/2007
I ran into this in San Diego back in the 1970s, when it was hard for a teenager to get the kind of formerly typical-teenager job in food service, stockrooms, etc., etc., because adult illegal aliens had taken up the bottom of the labor market. Thirty years on, and this phenomenon has spread all over the USA.

The anti-immigrant lobbies of the 19th and early 20th centuries were only partly about old-fashioned racism. They were mostly driven by working-class American workers who could see how the employers used "coolie labor" to drive down wages and keep them down. It's happened again.
11:35 AM on 12/23/2007
This is just more race to the bottom talk. Undercut US employees but throw them a bone of cheap ham sandwiches. It's just more greed on the part of employers.
08:59 AM on 12/23/2007
What pure crap. Americans WILL do any job. The pay has to be par for the job, often overlooked by the unholy alliance of Bushites, the Chamber of Commerce and bleeding heart libs. "Document challenged"? Friend, they are illegal aliens. They headed for the doors for good reason! If the majority of Americans had their way, employers of illegals would be fined and/or jailed. Without employment resourses, illegals will self deport, thus making this whole issue moot and in fairly quick order. We can't change too many things right off, thanks to the criminals in the Executive and the spineless wonders in the Legislative, but by God we can do something about illegal aliens. And we are, town by town, county by county and state by state. La Raza and the ACLU are going to run out of lawyers to fight all the initiatives springing up. Next up, the H1-B and H2-B visa programs, free trade agreements and the banning of dangerous, useless Chinese imports.
01:34 AM on 12/23/2007
I would like to extend an invitation to the America out here.

"Don't want"? It is two words, so I know that this mass delusion wasn't created by Luntz. The naivety is stunning, verging on the complicit, once you understand its intent.

People who have discretionary money, discretionary lives, and discretionary jobs should refrain from passing on non-researched, unsubstantiated, unverified, folklore.

Where was the seminal, boilerplate solid research which sprouted this conclusion? To be repeated over and over as a mindless incantation or sooth for their soul.

Did they call up all of the people that comprise the U6 unemployment figure? They won't be able to reach them all, because millions have fallen off of that broad statistical radar, which is never discussed. Still unemployed.

People delude themselves that those jobs at Fresh Direct were made available to other than friends or family of the already "employed" illegal immigrants.

"Want" went to "must" a long time ago for vast numbers of born and bred Americans. Vast.

Oh and BTW, if you have never been hungry for a week, you won't get this. Those illegal immigrants and their families who have been living on 70 $4 hours per week... can't load up their Lexus and RV and head back to one of their investment properties in Mexico. They are stuck here.

And every day they grow more desperate.

Watch your back. Because they aren't coming for me. I am a daylaborer. I work with them. I don't have a fat wallet.
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tbone99
cruisin' duality
11:50 AM on 12/22/2007
Employers not only can get away with paying illegal workers and foreign born workers less, they don't have to worry about benefits, staffing numbers and long hours that Americans wouldn't put up with or whats left of Osha rules, because these people come from places these safeguards do not exist.
Thousands of legal foreign nurses ahave been recruited from the the Philipines & Africa, paperwork & greencards paid for, housing provided in order to avoid safe staffing, and raised wages.Additionally these people are unfamialiar with some of the legal requiremnts enacted to make american hospitals safer.Do you think they'll blow the whistle? Not on your life!
Likewise ,Dell in Austin ,brought in many Indian workers on 2 year contracts and paid them $10 dollars an hr, because an experienced American tech worker would cost 5 times that and want to go home at 5pm.Foreign workers know they have no rights and won't challenge abuse, unlike Americans, so they are hot commodities for corporations to use and discard.
We hear that American workers aren't educated for the new technologies, but instead of training poor people here who need jobs and can't afford college because they have to work , these same companies let other countries pay to train them and then raid those countries for their most educated., keeping those countries in a perpetual third world state.
Its not the American worker who doesn't want to work my friend. Its corporations who want to continue their unobstructed profiteering without restraint.
10:27 AM on 12/22/2007
It does my heart good to see the majority of posters here call out the propaganda that illegal immigrants "do the work Americans won't do". This propaganda has disgusted me for years. This country does NOT need immigration reform, we neeed immigration ENFORCEMENT. The democratic candidates need to get on the other side of this issue, especially in the Southwesten states, where the vast majority of citizens don't buy the propaganda. Pay a fair and livable wage, and quality workers that ARE American citizens will line up for any job, no matter how "menial" or otherwise unattractive.