In Sidney, Montana the owner of the local McDonald’s fast food joint cannot get workers to staff his restaurant. This sounds like a bad thing, and for owner John Francis, it is, but, this loss of workers is because of the good economic news and low unemployment rates that is occurring throughout the Western United States.
According to a recent report by the AP, unemployment rates have been as low as 2 percent in specific areas and no higher than a general rate of 3.5 in the North Western states, a rate that has been dropping steadily over the last 15 years since the economic doldrums of the 1980s faded in the area.
Unemployment rates have been as low as 2 percent this year in places like Montana, and nearly as low in neighboring states. Economists cite such factors as an aging work force and booming tourism economies for the tight labor market.
“This is actually the biggest economic story of our time, and we don’t quite grasp it because it is 15 years in the making,” said economist Larry Swanson, director of the O’Connor Center for the Rocky Mountain West at the University of Montana.
At this rate, there just isn’t anyone to take those McDonald’s jobs, or other lower skilled labor jobs in the Great American West. For that matter, entry-level jobs in police work and other mid level jobs are difficult to fill and this is causing wages to rise as the labor pool thins even more.
As Mark Knold, chief economist at the Utah Department of Workforce Services, said to the AP, “The hardest thing is to keep the economy growing at a strong rate when you have a low unemployment rate. Take a company that wants to expand. Where is the next worker going to come from?”
And therein lies the problem. Where are those workers coming from? In the past, many of them would come from areas in the US experiencing less prosperity. Many would point to illegal immigrants and claim that business “needs” this pool of labor to fill those “jobs Americans don’t want.” This illegal labor pool, however, is not as necessary as many would have you believe.
In years past various blocks of our citizens would migrate from one corner of the country, where there was less prosperity, to areas offering more plentiful jobs. Certainly alien immigrants supplemented that flow of workers, but it wasn’t the only source of them. In fact, the great American West was built by such a migration – “Go West Young Man,” and Manifest Destiny. As the eastern states found themselves upon hard times and waning opportunity, millions streamed west to settle the region and seek their individual fortunes. In another case, in the early 1900’s, many thousands of the South’s black population streamed northward from the unfriendly atmosphere of a Jim Crow world to seek jobs in the industrialized Northern sections of the country. These mass migrations have happened repeatedly in America’s past and helps account for our great prosperity.
But all that was before welfare and the nanny state were foisted upon a gullible nation. Now, instead of moving west from metropolitan areas such as New York, Detroit, and Chicago, many millions of America’s potential workers stay in their poverty ridden status because they have become convinced that their welfare checks in those cities are their only lifelines and any thought of uprooting themselves from their mentally comforting illusion that they are being “taken care of” has become anathema to them.
It is true that in the 1980s and 1990s, many people began to move from the north to the south as industry sought out the advantageous southern regions to open new manufacturing plants. But this particular migration has been small in comparison to migrations in our past. But, while a smaller example, it did occur and new jobs drove those moves.
Yet today, even as employment agencies in the Western states are begging for people to apply for work, AP also reports that “Detroit remains among the nation’s poorest cities” with 32.5 percent of its residents living below the poverty line.
What is the main difference between the early 1800s when Americans found themselves looking westward for a more prosperous future and today? Why did black Americans leave the South in great numbers to head north and why won’t they head west today? What keeps people in areas where they know things are “hopeless”?
There is only one differing factor between past eras when rising and falling prosperity was at the root of internal migration and today where job needs cannot be met from one region to another. That difference is that the welfare state now looms large in the lives of people who could otherwise move to greener pastures. Too many low income or poverty level citizens imagine that the state is their only salvation, so they stay in areas where they can count on state aid flowing into their pockets. The nanny state has replaced their common sense to go where opportunity lies.
Were this another era, low income families would be streaming west from the chocked and poverty stricken cities to the great opportunities presenting themselves in the prosperous but employee poor Western United States. Cottage industries would be started to assist people in such moves to the “promised land.” In eras past, word would be passed from region to region that prosperity awaits an internal migrant in some other part of the US.
But none of this is happening today — not even a little.
And the nanny, welfare state is the anchor holding our citizens back from making their lives better.
-by Warner Todd Huston
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DrDamage said,
I’m not disagreeing with you here (I believe that welfare creates perverse incentives and vicious cycles of poverty), but how does welfare tie people to a single location? is it managed on a state by state basis rather than federally?
If western states have a labor shortage, shouldn’t companies that need labor be advertising for employees in newspapers in the eastern states?
August 31, 2007 at 8:51 am
roadkill1965 said,
Ironically, I recently saw a news show describing laid-off autoworkers in Detroit moving their families to Wyoming to work on the oil rigs, so there is a bit of that migration happening. The oil companies were advertising for workers in Detroit newspapers. Of course, these are guys who wouldn’t be caught dead on government assistance!
August 31, 2007 at 9:10 am
jackal1994 said,
I heard Michigan (where I live) lost 200,000 people in 2006.
August 31, 2007 at 11:11 am
phoneguy said,
DrDamage said
how does welfare tie people to a single location? is it managed on a state by state basis rather than federally?
yes!! and some places require you to be resident for a year before you can qualify for welfare!! (or some people would just move to the place that paid the most)
August 31, 2007 at 8:12 pm
Roger Knight said,
You might also ask why should a divorced father destroyed by an unreasonable child support order flip burgers in Montana?
Unless the burger joint was willing to hire him under the table?
I suspect the laid off autoworkers from Detroit are willing to work on oil rigs in Wyoming to support wives who did NOT run to the courthouse to get their special privilege orders.
State sponsored extortion and peonage is not a family value!
September 2, 2007 at 4:32 pm
PolishKnight said,
F… low paying small businesses!
I caused a huge flame war in the letters section of American Spectator for saying this:
Burger flipping jobs don’t pay enough and the small business owners are either too cheap, or on the edge, to pay decent wages.
In the article I read about the worker shortage in the area, the small business owners complained that if they tried to raise wages then other businesses would complain that they were creating higher expectations. You know what that is? Collusion! It’s ILLEGAL for employers to get together to try to fix prices or wages.
Legitimately, they have a fear that if one or all of them raise wages then they’ll either see profits shrink beyond survivability OR they’ll have to raise prices to the consumer. But that said, do you mind paying an extra 20 cents on the “dollar menu” to see employees paid and treated decently? After all, you “pay” if they go on welfare anyway.
This angered “free market” conservatives who said that low wage workers should be treated like dog meat just so small businesses can meet their bottom line. If they can’t afford to pay decent wages, then maybe they should close up and let the Wal Mart take over. Yes? And the same with illegals: If they want to give me a dollar off of a rib special by hiring illegals who then collect 20 grand in federal benefits, well, to hell with that. No thanks. (Quite frankly, service at American restaurants has been AWFUL lately.)
I advised my wife whose going to school and working retail to not kill herself for a lousy 12 bucks an hour. Other places offered even less (9 bucks an hour) but tried to work her to death to the point where she couldn’t even focus on her studies. I’m reminded of Nike factories that pay Chinese women 50 cents an hour to produce sneakers they sell for 100 bucks. F… that! That’s why I buy generic sneakers for 30 bucks and usually get better quality too!
September 4, 2007 at 9:05 am