The Unequal Social Contract: How Discrimination Shaped Americas Labor Market

Abstract

[Name] Question 2 We learn in history that labor market worked in ways that divided workers, keeping some people mostly the African American out, preventing them from enjoying all the benefits of a growing economy. In the pre- capitalist society, was entirely agricultural. Free people in communities typically worked independently as either craftsmen or farmers. Wage labor was rare since there were no labor laws in place and informal and formal labor was indistinguishable. Beginning of our nation`s history however led to some changes which included creation of laws, institution and social norms that contributed to creation of segmented economy. Many people in the economy were left out by design; slave were the most common people, native people and Mexicans lost their rights and their land. Women on the other hand were not allowed to own property or to vote (Allen 1999). Simply the economy was organized around laws that were all designed by the white man mostly the property owners who used the legistlative powers to strengthen their position of power in American society. As industrialization began, wage labor was introduced since new factories needed workers and labor. However these factory jobs were considered informal since there was no worker protection regulation. As the economy recovered with time and began to grow, the social contract was introduced and the country entered a period of shared prosperity anchored in the Keynesian economics(Durham, 2007). The government used tax revenues to expend public infranstucture, support education and introduced new regulations that increased workers protection and benefits. However, these reforms excluded some people from these benefits. For example, there were different labor standards in the country put in place for the agricultural workers, mostly the blacks and immigrants (Mong & Roscigno , 2010). The Jim Crow laws in the South kept African Americans in deep poverty forcing some to work as domestic workers, farm labors and janitors. While northern politicians were eager to establish civil rights for all citizens, they failed to guarantee the African Americans' political and social equality(Allen 1999). Years after this period, the Southern States discriminated the blacks against voting and prevented any progress towards social equality. Additionally, the minorities in the south suffered violence and hatred from white extremists who sought to reverse the benefits acquired by these communities. After the passage of the Civil Rights Act in 1964, immigrants especially the African American still received little improvements in their life and work experience. Racial uprisings in most States in United States was as a result of discrimination that blacks faced including police brutality, poor housing and sub-standard schools(Mong & Roscigno , 2010).. The whites moved away from central cities and more affluent business and residents relocated to the suburbs. The central cities become places of concentrated poverty full of African American and few of employment opportunities. People who were left out from the expanding economy in the country turned out to informal jobs with cheap labor. The blacks obtained food, housing and most of their basic needs through informal jobs since formal economy had abandoned most of the cities. The progress of women in the economy was too slow since many were employed in informal sectors for example in hospitality, health care, supportive business and domestic work. There were also persistent social norms in the country child rearing and women responsibilities that prevented women from entering full time jobs. In short, the great progress brought by the social contract, gender and race discrimination was common in the country and led to the segmentation of labor market where the minorities, immigrants and women were discriminated. The minorities in the economy were pushed to a parallel segment of the economy working with formal workers for lower wages and fewer protection and benefits. These problems were not an accident but were a result of the policies made to ensure there was a large pool of workers working for low wages. The social contract theory state that individuals live together in the society with a common agreement that establishes political and moral behavior. Some people believe that if we live according to the social contract, we can live well and morally. The US constitution is a good example cited as one of the exploit example of America`s social contract. The constitution sets out...