[net.politics] Discrimination & Free Markets

cramer@kontron.UUCP (Clayton Cramer) (06/14/85)

> Re;: your point about it not being necessary for govt to intervene between
> employer and employee
> 
> True if there are exactly as many jobs as job applicant. Since that is 
> an obviously flase situation, the employee loses. The employer can
> just say "sorry, no job" because of racism or sexism and find 10 (or 20 or
> 2000) others to apply for the job. That is perhaps why, over
> 100 years after the 14th and 15th Amendments and 20 years after the
> Civil Rights Act, we are not anywhere near a discrimination free society.
> Consider, however, the changes that have happened in the ~15 years of
> active Affirmative Action programs.
> 
> Voluntary EEO is a nice idea, but it fails against entrenched racism.
> Only if it is *significantly* unprofitable to be racist or sexist
> will bigots  stop screwing people. And only government or the fear
> of government can apply the necessary pressure.
> 
> Marcel Simon

Under normal circumstances (that is, when the economy is healthy) there are
roughly equivalent numbers of jobs and employees.  Employers lower wages if
there are people desparate for jobs, firing highly paid workers if necessary
to exploit people that are out of work.  This may seem brutual and vicious,
but it does reduce wages to a level that insures that wages are at a level
adequate to clear the market of available labor.  (It also makes it unlikely
that a few people will be continuously unemployed.  Sharing the misery of
unemployment, so to speak.)

However, we don't work under normal circumstances.  The government's laws
concerning minimum wages and licensing of small businesses make it likely
that there will be a substantial surplus of unskilled labor; this reduces
the cost to the employer of discriminating.  If one were cynical, one could
conclude that the enthusiasm that labor unions have historically shown for
minimum wage laws is because labor unions (until very recently) have been
hotbeds of racism --- frequently written into the labor union bylaws.

When the government allows wages and prices to move freely, without the
aforementioned interventions, and without the near-monopoly power the
government has granted to labor unions, the supply of labor and jobs *is*
roughly equivalent.  Government has created the circumstances that make
bigotry relatively cost-free --- and considering the long history of 
governmentally required racism, that is not surprising.