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Politics : Mainstream Politics and Economics

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To: koan who wrote (24280)8/21/2012 1:20:57 PM
From: TimF  Read Replies (2) of 85487
 
You worked with a company, and they hired no blacks, therefore companies in general had no interest in hiring black workers, even when they could pay them less?

You realize that's a pretty non-nonsensical implied argument right? Or if your not trying to make an implied argument. If you don't think that the experience of the company you worked for meant much, then you yourself realize that that experience is pretty irrelevant.

If companies would generally refuse to hire black people, then there wouldn't have been any need (from the perspective of the segregationists) to pass laws forbidding them from doing so. But the reality is, that why business owners could also be racist (they where probably about as likely to be so as anyone else), some of them where not and others cared less about the racism, then about making money. Laws limiting who you can hire and who you can sell to, laws requiring duplicate facilities, or requiring you to treat some of your customers poorly, all raise expenses or reduce revenue, and so reduce profit.

All of which lead to companies fighting against Jim Crow laws (or at least the portions that affected the particular companies.

Even in Califonria racism was a huge problem, in the south it was pandemic.

And in the South its impact was significantly worsened by big government (on the state and local level).

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Rosa Parks and history

Oct 27, 2005
by Thomas Sowell

he death of Rosa Parks has reminded us of her place in history, as the black woman whose refusal to give up her seat on a bus to a white man, in accordance with the Jim Crow laws of Alabama, became the spark that ignited the civil rights movement of the 1950s and 1960s.

Most people do not know the rest of the story, however. Why was there racially segregated seating on public transportation in the first place? "Racism" some will say -- and there was certainly plenty of racism in the South, going back for centuries. But racially segregated seating on streetcars and buses in the South did not go back for centuries.

Far from existing from time immemorial, as many have assumed, racially segregated seating in public transportation began in the South in the late 19th and early 20th centuries.

Those who see government as the solution to social problems may be surprised to learn that it was government which created this problem. Many, if not most, municipal transit systems were privately owned in the 19th century and the private owners of these systems had no incentive to segregate the races.

These owners may have been racists themselves but they were in business to make a profit -- and you don't make a profit by alienating a lot of your customers. There was not enough market demand for Jim Crow seating on municipal transit to bring it about.

It was politics that segregated the races because the incentives of the political process are different from the incentives of the economic process. Both blacks and whites spent money to ride the buses but, after the disenfranchisement of black voters in the late 19th and early 20th century, only whites counted in the political process.

It was not necessary for an overwhelming majority of the white voters to demand racial segregation. If some did and the others didn't care, that was sufficient politically, because what blacks wanted did not count politically after they lost the vote.

The incentives of the economic system and the incentives of the political system were not only different, they clashed. Private owners of streetcar, bus, and railroad companies in the South lobbied against the Jim Crow laws while these laws were being written, challenged them in the courts after the laws were passed, and then dragged their feet in enforcing those laws after they were upheld by the courts.

These tactics delayed the enforcement of Jim Crow seating laws for years in some places. Then company employees began to be arrested for not enforcing such laws and at least one president of a streetcar company was threatened with jail if he didn't comply.

None of this resistance was based on a desire for civil rights for blacks. It was based on a fear of losing money if racial segregation caused black customers to use public transportation less often than they would have in the absence of this affront.

Just as it was not necessary for an overwhelming majority of whites to demand racial segregation through the political system to bring it about, so it was not necessary for an overwhelming majority of blacks to stop riding the streetcars, buses and trains in order to provide incentives for the owners of these transportation systems to feel the loss of money if some blacks used public transportation less than they would have otherwise.

People who decry the fact that businesses are in business "just to make money" seldom understand the implications of what they are saying. You make money by doing what other people want, not what you want.

Black people's money was just as good as white people's money, even though that was not the case when it came to votes.

Initially, segregation meant that whites could not sit in the black section of a bus any more than blacks could sit in the white section. But whites who were forced to stand when there were still empty seats in the black section objected. That's when the rule was imposed that blacks had to give up their seats to whites.

Legal sophistries by judges "interpreted" the 14th Amendment's requirement of equal treatment out of existence. Judicial activism can go in any direction.

That's when Rosa Parks came in, after more than half a century of political chicanery and judicial fraud.

Thomas Sowell is a Rose and Milton Friedman Senior Fellow.

townhall.com

My problem is with the parenthetical, which implies that slavery and Jim Crow were instances of organic community traditions that the state had to dismantle. On the contrary, both were the products of heavy state involvement. Slavery was enforced by means of taxes and the conscription of able-bodied men (including non-slave-holders) to chase down runaway slaves. Jim Crow prohibited everyone (including the non-bigots) from freely associating and doing business with blacks on equal terms with whites. This is not to say that there weren't community norms that favored discrimination; clearly there were. But those norms were buttressed by the power of the state, and they might have crumbled sooner without state support.

agoraphilia.blogspot.com

Institutional slavery must have the backing of a nation’s government in order to even exist. It was not private citizens who were responsible for the success of Jim Crow laws (though they certainly bear the guilt), it was government’s involvement that made the Jim Crow era possible.

freemarketmojo.com

..."Race and Economics" explains how such interventions impact blacks and other minorities, whether in housing markets, the railroad industry or the licensing of taxicabs-- and irrespective of the intentions behind the government's actions.

Minimum wage laws are classic examples. The last year in which the black unemployment rate was lower than the white unemployment rate was 1930. That was also the last year in which there was no federal minimum wage law.

The Davis-Bacon Act of 1931 was in part a result of a series of incidents in which non-union black construction labor enabled various contractors from the South to underbid Northern contractors who used white, unionized construction labor.

The Davis-Bacon Act required that "prevailing wages" be paid on government construction projects-- "prevailing wages" almost always meaning in practice union wages. Since blacks were kept out of construction unions then, and for decades thereafter, many black construction workers lost their jobs.

Minimum wages were required more broadly under the National Industrial Recovery Act of 1933 and under the Fair Labor Standards Act of 1938, with negative consequences for black employment across a much wider range of industries.

In recent times, we have gotten so used to young blacks having sky-high unemployment rates that it will be a shock to many readers of Walter Williams' "Race and Economics" to discover that the unemployment rate of young blacks was once only a fraction of what it has been in recent decades. And, in earlier times, it was not very different from the unemployment rate of young whites.

The factors that cause the most noise in the media are not the ones that have the most impact on minorities. This book will be eye-opening for those who want their eyes opened. But those with the liberal vision of the world are unlikely to read it at all.

townhall.com

The enemies of Jim Crow by Jeff Jacoby
The Boston Globe
February 15, 2009



Something to ponder during Black History Month: In the long dark night that followed Reconstruction, what was the engine that drove Jim Crow? Did segregationist laws codify the existing social practice, or was it the laws themselves that segregated the South?

Many people might intuitively assume that Southern racism had led to entrenched public segregation long before Southern legislatures made it mandatory. Not so. Separate facilities for blacks and whites were not routine in the South until the early 20th century. Racism there surely was, but as C. Vann Woodward observed in The Strange Career of Jim Crow, his influential history of post-Civil War segregation, the idea of formally separating the races in places of public accommodation initially struck many white Southerners as daft. In 1898, the editor of South Carolina's oldest and most conservative newspaper, the Charleston News and Courier, responded to a proposal for segregated railroad cars with what was meant to be scathing ridicule:

"If we must have Jim Crow cars on the railroads, there should be Jim Crow . . . passenger boats," he wrote. "Moreover, there should be Jim Crow waiting saloons at all stations, and Jim Crow eating houses. . . . There should be Jim Crow sections of the jury box, and a separate Jim Crow dock and witness stand in every court -- and a JimCrow Bible for colored witnesses to kiss."

Tragically, what the Charleston editor intended as mockery would soon become reality across the South -- "down to and including the Jim Crow Bible," as Woodward noted. But it wasn't an overwhelming grassroots demand for segregation that institutionalized Jim Crow. It was government, often riding roughshod over the objection of private-sector entrepreneurs.

Far from craving the authority to relegate blacks to the back of buses and streetcars, for example, the owners of municipal transportation systems actively resisted segregation. They did so not out of some lofty commitment to racial equality or integration, but for economic reasons: Segregation hurt their bottom line. For one thing, it drove up their expenses by requiring them -- as the manager of Houston's streetcar company complained to city councilors in 1904 -- "to haul around a good deal of empty space that is assigned to the colored people and not available to both races." In many cities, segregation also provoked black passengers to boycott the streetcars, cutting sharply into the companies' revenue.

In a notable study published in the Journal of Economic History in 1986, economist Jennifer Roback showed that in one Southern city after another, private transit companies tried to scuttle segregation laws or simply chose to ignore them.

In Jacksonville, Fla., a 1901 ordinance requiring black passengers to be segregated went unenforced until 1905, when the state legislature mandated segregation statewide. The new statute "was passed by the Legislature much against the will of the streetcar companies," reported the Florida Times-Union. So well-known was the companies' hostility to the law that when a group of black citizens mounted a court challenge to overturn it, their attorney felt compelled to deny being "in cahoots with the railroad lines in Jacksonville."

In Alabama, the Mobile Light and Railroad Company reacted to a Jim Crow ordinance by flatly refusing to enforce it. "Whites would not obey the law and were continually . . . refusing to sit where they were told," the company's manager told a reporter in 1902. In Memphis, the transit company defiantly pleaded guilty to violating a Tennessee segregation statute, explaining that it believed the law to be "against the wishes of the majority of its patrons." In Savannah, the local black paper noted that streetcar officials "are not anxious to carry into effect the unjust laws . . . requiring separate cars for the races," since it would put them "to extra trouble and expense."

Eventually, of course, the government got its way, as companies surrendered to pressure from city hall and the statehouse. In a victory of government regulation over the free market, Jim Crow took hold across the South, where it would cruelly hold sway for the next 60 years.

Many Americans know that it took strong government action in the 1950s and 1960s to end segregation and bring civil rights to the South. Fewer realize that it was government action that established segregation in the first place. Today, when the power of the state is being aggrandized as never before, the history of Jim Crow offers a cautionary reminder: When the political class overrides the private sector, what ensues is not necessarily an improvement. It may even be a national disgrace.

jeffjacoby.com

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“The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.”

- Milton Friedman
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