Notes
Chapter 1 • Blacks Today and Yesterday
1. Department of Commerce, Census Bureau, “Poverty: Poverty Threshold 2006,” Current Population Survey, 2006 Annual Social and Economic Supplement, table A1, www.census.gov/hhes/www/poverty/data/threshld/thresh06.html (accessed May 5, 2010).
2. Robert Rector, “Food Fight: How Hungry Are America’s Children?” Policy Review (Fall 1991): 38–43.
3. Rector and Kirk Johnson, “Understanding Poverty and Economic Inequality in the United States,” Heritage Foundation Backgrounder #1713 (January 5, 2004), www.heritage.org/Research/Welfare/bg1796.cfm (accessed May 5, 2009).
4. Rector, “Poverty in U.S. Is Exaggerated by Census,” The Wall Street Journal, September 25, 1990, A18.
5. www.cdc.gov/nchs/data/statab/t001x17.pdf. See also Thomas Sowell, Ethnic America (New York: Basic Books, 1981), 222; and June O’Neill, “The Changing Status of Black Americans,” The American Enterprise, vol. 3, no. 5 (September/October 1992): 72.
6. Census Bureau, “Marital Status and Living Arrangements,” Current Population Survey (Washington, D.C.: Government Printing Office, March 1998 Update), Series P-1, 20–514.
7. Census Bureau, Current Population Reports, Series P-20, no. 468 (Washington, D.C.: Government Printing Office, 1992), vi, cited in Thomas Sowell, The Vision of the Anointed (New York: Basic Books, 1995), 80.
8. Herbert Gutman, The Black Family in Slavery and Freedom: 1750–1925 (New York: Pantheon Books, 1976), 10.
9. The Black Family, ix.
10. Ibid., xix.
11. Frank F. Furstenberg Jr., Theodore Hershberg, and John Modell, “The Origins of the Female-Headed Black Family: The Impact of the Urban Experience,” Journal of Interdisciplinary History VI:2 (1975): 211–233. Originally published in Kenneth L. Kusmer, ed., From Reconstruction to the Great Migration, 1877–1917, vol. 4, part II, (New York: Garland Publishing, 1991), 72–96.
12. “The Origins,” 180.
13. Theodore Hershberg, “Free Blacks in Antebellum Philadelphia: A Study of Ex-Slaves, Freeborn, and Socioeconomic Decline,” Journal of Social History 5:2 (1971–72): 194.
14. Gutman, The Black Family, 449–56.
15. Sowell, The Vision, 81. Prior to 1890, this question was not included in the census.
16. Rector, “Why Expanding Welfare Will Not Help the Poor,” (lecture no. 450, The Heritage Foundation, Washington, D.C., 1993), 6.
17. National Center for Health Statistics, National Vital Statistics Report, vol. 50, no. 5 (Hyattsville, Md.: 2002), 49.
18. Charles Murray, “The Coming White Underclass,” The Wall Street Journal, October 29, 1993.
19. Gregory B. Christensen and Walter E. Williams, “Welfare Family Cohesiveness and Out of Wedlock Birth,” The American Family and the State, ed. Joseph Peden and Fred Glahe (San Francisco: Pacific Institute for Public Policy Research, 1986), 398.
20. M. Anne Hill and June O’Neill, “Underclass Behavior in the United States: Measurement and Analysis of Determinants,” cited in Rector, “Why Expanding Welfare,” 6.
21. Lawrence M. Mead, The New Politics of Poverty: The Nonworking Poor in America (New York: Basic Books, 1992), 170.
Chapter 2 • Is Discrimination a Complete Barrier to Economic Mobility?
1. For an excellent discussion of immigrant groups see Oscar Handlin, The Uprooted (New York: Grosset & Dunlap, 1951); J. C. Furnas, The Americans (New York: G. P. Putnam’s Sons, 1969); Nathan Glazer and Daniel Patrick Moynihan, Beyond The Melting Pot (Cambridge, Mass.: MIT Press, 1963); and Thomas Sowell, Ethnic America (New York: Basic Books, 1981), especially 51–92.
2. Bob Hepple, Race, Jobs and the Law in Britain, 2nd ed. (London: Penguin Books, 1970), 20.
3. R. A. Schermerhorn, Comparative Ethnic Relations (New York: Random House, 1970), 75.
4. Yosh Tandon, Problems of a Displaced Minority: The New Position of East Africa’s Asians (London: Minority Rights Group, 1972), 5.
5. The ironic aspect of this whole matter: anti-Asian feelings developed in spite of Indian support and collaboration with the Africans in their struggles for independence. The Indians considered Mau Mau an orthodox struggle and sympathized with its aims; Indian newspapers voiced the opinions of black Africans and directly sponsored publication of their newspapers, assisted in African education, and were generally cooperative with the East Africans. But none of this overshadowed the rising intensity of African nationalism and African resentment of the Indian socio-economic position in the territories. J. S. Mangat, A History of the Asians in East Africa (London: Oxford University Press, 1969): esp. 72–8.
6. Mangat, A History of the Asians, 15; In Uganda, in addition to the expulsion of the Asians, there has been a mass execution of the Langi and the Acholi by the Nubians. See John Humphreys, “Amin Promises Liberation, Delivers Exile and Murder,” Matchbox (Spring/Summer 1975): 7–12.
7. Thomas Sowell, Preferential Policies: An International Perspective (New York: William Morrow & Co., 1990), 69–76.
8. Thomas Patrick Melady, Burundi: The Tragic Years (New York: Orbis Books, 1974), 34. See also Leo Kuper, Genocide: Its Political Use in the Twentieth Century (New Haven: Yale University Press, 1981), 63, 115, 164.
9. Memo dated November 15, 1994: Members of the independent inquiry into the actions of the United Nations during the 1994 genocide in Rwanda, addressed to the UN secretary-general, “Report of the Independent Inquiry into the action of the United Nations during the 1994 genocide in Rwanda,” December 15, 1999.
10. In Burma, the Indians are even more despised. Moshe Yegar, The Muslims of Burma: A Study of a Minority Group (Wiesbaden, Germany: Otto Harrassowitz, 1972), 32.
11. Hugh Mabbett, The Chinese in Indonesia, the Philippines and Malaysia (London: Minority Rights Group, 1972), 19, 24.
12. Ibid., 5.
13. See T. H. Silcock, “The Effects of Industrialization on Race Relations in Malaya,” in Industrialization and Race Relations, ed. Guy Hunter (New York: Oxford University Press, 1965), 177–200.
14. See Virginia Thompson and Richard Adloff, Minority Problems in Southeast Asia (Stanford, Calif.: Stanford University Press, 1955); and G. W. Skinner, Leadership and Power in the Chinese Community of Thailand (Ithaca, N.Y.: Cornell University Press, 1958).
15. Sowell, Preferential Policies, 46.
16. Mabbett, The Chinese in Indonesia, 25.
17. See Peter T. Bauer, Reality and Rhetoric: Studies in the Economics of Development (Cambridge, Mass: Harvard University Press, 1984), 7, 81.
18. Sowell, Preferential Policies, 50.
19. I might add that in the East African states of Kenya, Tanzania, and Uganda, before the expulsion of Asians, the Indians were an alien and politically powerless group. Yet they constituted an economically powerful middle class that owned large industrial enterprises and controlled most of the retail activity. They have been discriminated against by both the Africans and the Europeans. See Yosh Tandon, Problems of a Displaced Minority.
20. Some observers of the Chinese problem in Southeast Asia assert that the resentment and hostility against the alien Chinese population stems from their success in the economic sphere. Contrast this assertion with that frequently made with regard to ethnic minorities in the United States—that they are unsuccessful in the economic sphere because of white hostility and resentment.
21. Sowell, Race and Economics (New York: David McKay, 1975), 127.
22. See avalon.law.yale.edu/19th_century/chinese_exclusion_act.asp (accessed September 5, 2010).
23. Pauli Murray, States’ Law on Race and Color: Studies in the Legal History of the South (Athens, Ga.: University of Georgia Press, 1997), 51.
24. William Petersen, “Chinese and Japanese Americans,” in Essays and Data on American Ethnic Groups, ed. Thomas Sowell, (Washington, D.C.: The Urban Institute, 1978), 65–106.
a. Toyosaburo Korematsu v. United States, U.S. Supreme Court Reports, 323 U.S. 214 (1944), no. 22, caselaw.lp.findlaw.com/scripts/getcase.pl?court=U.S.&vol=323&invol=214 (accessed November 15, 2002).
b. Kiyoshi Hirabayashi v. United States, U.S. Supreme Court Reports, 320 U.S. 81 (1943), no. 870, www.tourolaw.edu/patch/Hirabayashi/Douglas.htm (accessed November 15, 2002).
c. Ex Parte Mitsuye Endo v. United States, U.S. Supreme Court Reports, 323 U.S. 283 (1944), no. 70, www.bus.miami.edu/~jmonroe/endo.htm (accessed November 15, 2002).
25. D. E. Jaco and G. L. Wilber, Department of Labor, Bureau of Labor Statistics, “Asian Americans in the Labor Market,” Monthly Labor Review (July 1975): 33–8.
26. Loren Schweninger, Black Property Owners in the South 1790–1915 (Chicago: University of Illinois Press, 1990), 13.
27. Ibid.
28. Ibid.
29. Ibid., 8.
30. Ibid., 15.
31. Ibid., 16.
32. Ibid., 20–3.
33. E. Horace Fitchett, “The Traditions of the Free Negro in Charleston, South Carolina,” The Journal of Negro History, vol. XXV, no. 2 (April 1940): 143; in The Colonial and Early National Period, ed. Kenneth L. Kusmer (New York: Garland Publishing, 1991), 299.
34. Eric Foner, A Short History of Reconstruction (New York: Harper & Row, 1990), 22.
35. Vishnu V. Oak, The Negro’s Adventure in General Business (Westport, Conn.: Negro Universities Press, 1949), 41.
36. Robert C. Reinders, “The Free Negro in the New Orleans Economy, 1850–1860: Louisiana History,” The Journal of the Louisiana Historical Association, vol. 6, no. 3: 278 and footnote 22.
37. “The Free Negro,” 279.
38. Ibid., 274–5.
39. Ibid., 271.
40. Ibid., 276.
41. Schweninger, Black Property Owners, 39.
42. Ibid.
43. Ibid., 42.
44. Ibid., 44.
45. Ibid.
46. Ibid., 45.
47. Ibid., 11.
48. Ibid., 46.
49. Ibid., 48.
50. Ibid., 251.
51. Ibid., 50.
52. Ibid.
53. Ibid., 52.
54. Ibid., 53.
55. Laws of North Carolina, Chapter CXXVII, 102–3.
56. Schweninger, Black Property Owners, 53.
57. Roger A. Fischer, “Racial Segregation in Ante-Bellum New Orleans,” American Historical Review 74:3 (1969): 928; in Black Communities and Urban Development in America 1720–1990, Kenneth L. Kusmer, ed. (New York: Garland Publishing, 1991), 83.
58. Marius Carriere Jr., “Blacks in Pre-Civil War Memphis,” Tennessee Historical Quarterly 48:1 (1989): 6; cited in Black Communities, 124.
59. Schweninger, Black Property Owners, 55.
60. Ibid.
61. John Sibley Butler, Entrepreneurship and Self-Help Among Black Americans (New York: State University of New York Press, 1991), 38.
62. Oak, The Negro’s Adventure, 39–40.
63. Butler, Entrepreneurship and Self-Help, 39.
64. Ibid.
65. Ibid., 40.
66. Ibid. See also Juliet E. K. Walker, “Racism, Slavery, and Free Enterprise: Black Entrepreneurship in the United States Before the Civil War,” Business History Review, vol. 60 (Autumn 1986): 343–82.
67. Oak, The Negro’s Adventure, 40.
68. Butler, Entrepreneurship and Self-Help, 42.
69. Oak, The Negro’s Adventure, 39.
70. Pennsylvania Register, December 10, 1834, cited in Emma Jones Lapsansky, “ ‘Since They Got Those Separate Churches’: Afro-Americans and Racism in Jacksonian Philadelphia,” American Quarterly 32:1 (1980): 61; in Black Communities, 315.
71. Leon F. Litwack, North of Slavery: The Negro in the Free States, 1790–1860 (Chicago: University of Chicago Press, 1961), 159.
72. North of Slavery, 161.
73. Ibid., 163.
74. Ibid.
75. These advertisements are cited in Robert Ernst, “The Economic Status of New York City Negroes, 1850–1863,” Negro History Bulletin 12 (1949): 133.
76. Ibid., 135.
77. Litwack, North of Slavery, 160.
78. Ibid., 172–73.
79. Ibid., 173.
80. Ibid., 175.
81. Butler, Entrepreneurship and Self-Help, 45. See also Schweninger, Black Property Owners, 47.
82. Ibid., 46.
83. Oak, The Negro’s Adventure, 39–40.
84. Ibid.
85. Reinders, “The Free Negro,” 285.
86. Isaac N. Carey v. The Corporation of Washington, V. Cranch (November, 1836); cited in Dorothy Provine, “The Economic Position of the Free Blacks in the District of Columbia, 1800–1860,” Journal of Negro History 58:1 (1973): 66; Carey v. Washington, case no. 2,404, 5 Cranch, C.C. 13, Circuit Court D.C., November term, 1836, 5 Federal Cases, 62–66.
87. Harriet Johnson v. Corporation of Washington, 5 Cranch 13, November term, 1836; cited in Letitia Woods Brown, Free Negroes in the District of Columbia 1790–1846 (New York: Oxford University Press, 1972), 135.
88. Provine, “The Economic Position,” 67.
89. Ibid., 71.
Chapter 3 • Race and Wage Regulation
1. Department of Commerce, Bureau of the Census, Negro Population, 1790–1950 (Washington, D.C.: Government Printing Office, 1918), 166, 503–4.
2. Richard K. Vedder and Lowell E. Galloway, Out of Work: Unemployment and Government in Twentieth-Century America (New York: Holmes & Meir, 1993), 281.
3. Price V. Fishback, “Can Competition Among Employers Reduce Governmental Discrimination? Coal Companies and Segregated Schools in West Virginia in the Early 1900s,” Journal of Law and Economics 32 (1989): 311–28.
4. Robert Higgs, Competition and Coercion: Blacks in the American Economy, 1865–1914 (London: Cambridge University Press, 1977), 63.
5. Competition and Coercion, 64.
6. Ibid., 118.
7. Armand J. Thieblot, Jr., Prevailing Wage Legislation: The Davis-Bacon Act, State “Little Davis-Bacon Acts,” The Walsh-Healey Act, and the Service Contract Act. (Philadelphia: The Wharton School, 1986), 140.
8. L. 1891 Ch. 114 p. 192–3.
9. House Committee on Labor, Hearings on H.R. 7995 and H.R. 9232, 71st Cong., 2d Sess. 17 (1930).
10. General Accounting Office, The Davis-Bacon Act Should Be Repealed (Washington, D.C.: Government Printing Office, 1979), 117.
11. Thieblot, Prevailing Wage, 28–9.
12. House Committee on Labor, Hearings on Hours of Labor and Wages on Public Works, 69th Cong., 2d Sess. 3 (1927).
13. Ibid.
14. Hours of Labor. Emphasis added.
15. Mark W. Kruman, “Quotas for Blacks: The Public Works Administration and the Black Construction Worker,” Labor History 16 (Winter 1975): 38.
16. Quotas for Blacks, 38–9.
17. Ibid., 39.
18. Cong. Rec., 71st Cong., 3d Sess. 6,513 (March 31, 1931).
19. House of Representatives, Hearings on H.R. 7995 (1931), 26–7.
20. Senate Committee on Manufacturers, Hearings on S. 5904, Wages of Laborers and Mechanics on Public Buildings, 71st Cong., 1931 (statement of AFL President William Green).
21. Cong. Rec., vol. 68, part 2 (January 18, 1927), 1,904.
22. Cong. Rec., House (February 28, 1931), 6,520.
23. Cong. Rec., House, 71st Cong., 3d sess. (1931), 6,513.
24. Ibid., 6,510.
25. Ibid., 6,516, 6,517, 6,520.
26. Robert Goldfarb and John Morrall, “The Davis-Bacon Act: An Appraisal of Recent Studies,” Industrial and Labor Relations Review 34 (1981): 191–206; cited in Daniel S. Hammermesh and Albert Rees, The Economics of Work and Pay (New York: Harper & Row, 1984), 247.
27. James Sherk, “Davis-Bacon for Ethanol,” www.heritage.org/Research/Labor/wm1562.CFM.
28. F. Ray Marshall, Allan M. Carter, and Allen G. King, Labor Economics: Wages, Employment and Trade Unionism (Homewood, Ill.: Richard D. Irwin, 1976), 240.
29. House Subcommittee on Labor Standards of the Committee on Education and Labor, testimony by the National Association of Minority Contractors (1986), 3.
30. Patrick Barry, “Congress’s Deconstruction Theory,” The Washington Monthly, January 1990, 2–3.
31. Vedder and Galloway, Racial Dimensions of the Davis-Bacon Act (Washington, D.C.: Heritage Foundation, 1990).
32. Vedder and Galloway, Out of Work, 279–80.
33. Scott Hodge, “Davis-Bacon: Racist Then, Racist Now,” The Wall Street Journal, June 25, 1990, A14.
34. Barry, “Congress’s Deconstruction,” 11.
35. Steven Chapman, “Loss for Public Housing Tenants,” The Washington Times, July 24, 1990, Commentary, 1.
36. Washington v. Davis (No. 74–1492), 168 U.S. App. D.C. 42, 12 F. 2d 956. reversed (1976).
37. Village of Arlington Heights v. Metropolitan Housing Development Corporation, 429 U.S. 252, 265, 97 S. Ct. 555, 563, 50 L. Ed. 2d 450 (1977).
38. Ibid.
39. Adkins v. Children’s Hospital of District of Columbia, 261 U.S. 525 (1923).
40. West Coast Hotel Co. v. Parrish, 300 U.S. 379 (1937).
41. Americans victimized by antibusiness ideology largely misconceive the role and actions of businessmen. In the literal sense of the word, they are really employees. Their customers, acting collectively, are the employers. The fact that customers exhibit preferences for lower prices forces the businessman, if labor costs rise, to make adjustments that minimize production costs. If he does not make adjustments, he will lose his customers and/or investors to firms that do make them—because customers and stockholders are far from indifferent to prices and returns on equity, respectively.
42. The cost to the employer is actually higher because, in addition to wages, he pays fringe benefits such as Social Security and medical insurance, estimated to be roughly one-third of the money wage.
43. It is important to note that most people acquire marketable skills by working at a “subnormal wage,” which amounts to paying to learn. For example, inexperienced doctors (interns), during their training, work for salaries that are a tiny fraction of what trained doctors earn. College students pass up considerable amounts of money in the form of tuition paid and income forgone in order to develop marketable skills. It is ironic, if not tragic, that low-skilled youths from poor families are denied an opportunity to get a similar start in life. This is exactly what happens when a high minimum wage forbids low-skilled workers to “pay” for job training in the form of a lower beginning wage. It must be remembered that teenagers are not supporting families and in most cases are living at home, and hence could afford to pay for their training.
44. See, for example, J. Peterson and C. Stuart, Employment Effects of Minimum Wages (Washington, D.C.: American Enterprise Institute, 1969); J. Mincer, “Unemployment Effects of Minimum Wages,” Journal of Political Economy, vol. 84, no. 4, part 2 (August 1976): 87; E. M. Gramlich, “Impact of Minimum Wages on Other Wages and Family Income,” Brookings Papers on Economic Activity, no. 2 (1976): 409; F. Welch and J. Cunningham, “Effects of Minimum Wages on the Level and Age Composition of Youth Employment,” Review of Economics and Statistics, vol. 60, no. 1 (February 1978): 140; J. P. Matilla, “The Impact of Minimum Wages on Teenage Schooling and on the Part-Time/Full-Time Employment of Youths,” S. Rottenberg, ed. The Economics of Legal Minimum Wages, P. Linneman, The Economic Impacts of Minimum Wage Laws: A New Look at an Old Question (Chicago: University of Chicago Press, Center for the Study of the Economy and the State, 1980—mimeographed); J. F. Boschen and H. I. Grossman, “The Federal Minimum Wage, Employment, and Inflation,” U.S. Minimum Wage Study Commission’s Report, vol. VI (1981): 19; J. S. Pettengill, “The Long Run Impact of a Minimum Wage on Employment and on the Wage Structure,” Report, vol. VI, 64; J. C. Cox and R. L. Oaxaca, “Effects of Minimum Wage Policy on Inflation and on Output, Prices, Employment, and Real Wages by Industry,” Report, vol. VI, 195; C. Brown, C. Gilroy, and A. Kohen, “Effects of the Minimum Wage on Youth Employment and Unemployment,” Report, vol. V, 2; J. Heckman and S. Sediacek, “The Impact of the Minimum Wage on the Employment and Earnings of Workers in South Carolina,” Report, vol. V, 253; D. Hammermesh, “Employment Demand: The Minimum Wage and Labor Costs,” Report, vol. V, 27; B. M. Fleisher, “Comments,” Report, vol. V, 85; R. H. Meyer and D. A. Wise, “Discontinuous Distributions and Missing Persons: The Minimum Wage and Unemployed Youth,” Report, vol. V, 198; J. R. Behrman, P. Taubman, and R. Sickles, “The Short and Long run Effects of Minimum Wages on the Distribution of Income,” Report, vol. VII, 105–6; and W. R. Johnson and E. K. Browning, “Minimum Wages and the Distribution of Income,” Report, vol. VII, 31–2.
Also L. P. Datcher and G. C. Lourh, “The Effect of Minimum Wage Legislation on the Distribution of Family Earnings Among Blacks and Whites,” Report, vol. VII, 125–6, 149. See also: Douglas K. Adie, “Teenage Unemployment and Real Federal Minimum Wages,” Journal of Political Economy 81 (1973): 435–41; David Neumark and William Wascher, Evidence on Employment Effects of Minimum Wages and Subminimum Wage Provisions from Panel Data on State Minimum Wage Laws (Cambridge, Massachusetts: National Bureau of Economic Research Working Paper no. 3859, 1992); Charles Brown, Curtis Gilroy, and Andrew Kohen, “The Effect of Minimum Wages on Employment and Unemployment,” Journal of Economic Literature 20 (1982): 482–528; David E. Haun, “Minimum Wages, Factor Substitution, and the Marginal Producer,” Quarterly Journal of Economics (August 1965): 478–86; Yale Brozen, “The Effect of Statutory Minimum Wages on Teenage Unemployment,” Journal of Law and Economics (April 1969): 109–22; Marvin Kosters and Finis Welch, “The Effects of Minimum Wages on the Distribution of Changes in Aggregate Employment,” American Economic Review (June 1972): 323–32; William G. Bowen and T. Aldrich Finegan, The Economics of Labor Force Participation (Princeton, N.J.: Princeton University Press, 1969); Edmund S. Phelps, Inflationary Policy and Unemployment Theory (New York: W. W. Norton and Co., 1972); Arthur F. Burns, The Management of Prosperity (New York: Columbia University Press, 1966); Thomas G. Moore, “The Effect of Minimum Wages on Teenage Unemployment Rates,” Journal of Political Economy (July/August 1971): 897–902; James F. Ragan, Jr., “Minimum Wages and the Youth Labor Market,” The Review of Economics and Statistics (May 1977): 129–36; Martin Feldstein, “The Economics of the New Unemployment,” The Public Interest (Fall 1973); and Andrew Brimmer, Minimum Wage Proposals, Labor Costs, and Employment Opportunities in the Nation’s Capitol (Washington, D.C.: Brimmer & Company, 1978), demonstrates the adverse employment and business migration effects of the minimum wage law in Washington.
45. J. R. Kearl, et al., “What Economists Think,” American Economic Review, vol. 69, no. 2 (May 1979): 30.
46. Richard M. Alston, J. R. Kearl, and Michael B. Vaughn, “Is There Global Economic Consensus: Is There a Consensus Among Economists in the 1990’s?” American Economic Review, vol. 82, no. 2 (May 1992): 204.
47. See, for example, G. L. Bach, Economics, 10th ed. (Englewood Cliffs, N. J.: Prentice Hall, 1980), 526; P. Samuelson, Economics, 11th ed. (New York: McGraw-Hill, 1980), 369–70; R. G. Lipsey, An Introduction to Positive Economics (London: Weidenfeld and Nicolson, 1963), 308–9; A. A. Alchian and W. R. Allen, University Economics (Belmont, Calif.: Wadsworth, 1964), 485–6; R. Attiyeh et al., Basic Economics (Englewood Cliffs, N. J.: Prentice-Hall, 1973), 87–8; F. Benham, Economics: A General Introduction (London: Sir Isaac Pitman & Sons, 1960), 318; R. T. Bye, Principles of Economics, 5th ed. (New York: Appleton Century-Crofts, 1956), 489; S. T. Call and W. L. Holahan, Microeconomics (Belmont, Calif.: Wadsworth, 1980), 420, 433; R. Campbell, People and Markets, An Introduction to Economics (Menlo Park, Calif.: Benjamin-Cummings, 1978), 268–71; R. Chisholm and M. McCarty, Principles of Economics (Glenview, Ill.: Scott, Foresman, 1978), 340; C. E. Ferguson and J. P. Gould, Microeconomic Theory, 4th ed. (Homewood, Ill.: Richard D. Irwin, 1975), 470–2; J. E. Hibdon, Price and Welfare Theory (New York: McGraw-Hill, 1969), 378–80; R. G. Lipsey and P. O. Steiner, Economics, 4th ed. (New York: Harper and Row, 1975), 108–10; E. Mansfield, Microeconomics, Theory and Applications, 3rd ed. (New York, W. W. Norton, 1979), 383; W. Nicholson, Intermediate Microeconomics and its Applications, 2nd ed. (Hinsdale, Ill.: Dryden Press, 1979), 380–3.
48. General Accounting Office, “Minimum Wage Policy Questions Persist,” Report to the U.S. Senate Committee on Labor and Human Resources (1983).
49. Congressional Budget Office, Cost Estimate for H.R. 1834 (Washington, D.C.: Government Printing Office, March 25, 1988), 2.
50. Beryl W. Sprinkel, chairman, Council of Economic Advisors, letter to Representative Thomas E. Petri, May 13, 1988.
51. David Card and Alan B. Krueger, “Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania,” American Economic Review, vol. 84, no. 4 (September 1994): 772–93.
52. David Card and Alan B. Krueger, Myth and Measurement: The New Economics of the Minimum Wage (Princeton, N.J.: Princeton University Press, 1995).
53. See www.epionline.org/study_epi_njfast_04-1996.pdf.
54. David Neumark and William Wascher, The Effect of New Jersey’s Minimum Wage Increase on Fast-food Employment: A Re-evaluation using Payroll Records (Cambridge, Mass.: National Bureau of Economic Research, 1995).
55. House-Senate Joint Economic Committee, “Raising the Minimum Wage: The Illusion of Compassion,” Economic Update, April 1996, www.house.gov/jec/cost-gov/regs/minimum/illusion.htm.
56. Monroe H. Brown, ed., The Fairmont Papers (San Francisco: Institute for Contemporary Studies, 1981): 50.
57. Census data indicate a remarkable closing of the educational gap, measured in median years of education, between blacks and whites. In fact, the difference is negligible, with median years for blacks 12.2 and whites 12.5. However, possession of a high school diploma is not synonymous with the ability to read, write, and perform simple numerical calculations. The Coleman Report said that blacks at grade twelve lagged three to five years behind whites in terms of academic achievement.
58. G. V. Doxey, The Industrial Colour Bar in South Africa (London: Oxford University Press, 1961), 112.
59. Ibid., 156. Emphasis added.
60. “Rightest South Africans Assail Racial Job Curb,” The New York Times, November 29, 1972, 3. In the United States, “liberals” are virtually unanimous in their condemnation of South African policy; yet they and black political leaders support some of the same labor policies and union practices that are supported in South Africa and used to handicap blacks. Interestingly, it is U.S. “conservatives” who reject, as applicable to the United States, South African labor and union policy.
61. Edward Roux, Time Longer than Rope: A History of the Black Man’s Struggle for Freedom in South Africa (Madison, Wis.: The University of Wisconsin Press, 1964).
62. G. M. E. Leistner and W. J. Breytenbach, The Black Worker of South Africa (Pretoria: The African Institute, 1975), 28.
63. Ibid. Rate-for-the-job is the same as our equal-pay-for-equal-work laws.
64. Doxey, The Industrial Colour Bar, 155.
65. Merle Lipton, Capitalism and Apartheid: South Africa, 1910–84 (Totowa, N.J.: Rowman & Allanheld, 1985), 189.
66. Armen A. Alchian and Reuben A. Kessel, “Competition, Monopoly, and the Pursuit of Pecuniary Gains,” H. Gregg Lewis, ed., Aspects of Labor Economics (Princeton, N.J.: Princeton University Press, 1962).
67. The federal minimum wage is only one of the minimum wages that actually or in effect are imposed in the United States. For example, union collective bargaining agreements, the Davis-Bacon Act, and other statutes are tantamount to the imposition of a wage minimum.
68. The assumption here, certainly valid in the contemporary United States, is that the purchasers of the firm’s final product do not care whether it was produced by white or black workers.
69. The assumption here is that people are legally free to enter the market and that there are many employers—of domestic workers, car washers and manufacturing operatives, for example—who would hire them.
70. The effectiveness of the wage demand also depends upon the elasticity of the substitution of capital for labor, i.e., the extent to which machines can be substituted for labor.
71. Union support for these programs may explain why minorities and their political leaders give unions strong political support. Such support gives the impression that unions are prominority. Thus, in an important sense, minorities are captured union constituents. If they do not politically support the union goals that put them out of work in the first place, unions will not support the government handouts that minorities receive as a result of being out of work.
72. John F. Kennedy, “New England and the South: The Struggle for Industry,” Atlantic Monthly, January 1954, 33.
73. Cong. Rec., House, 11, 383 (1966).
74. Congressional Budget Office, “The Minimum Wage: Its Relationship to Incomes and Poverty,” staff working paper, June 1986, 24.
75. Robert R. Nathan, The Impact of Increasing the Minimum Wage on Employment in Retailing (Washington, D.C.: Robert R. Nathan Associates, July 1987), 17.
76. Department of Labor, Bureau of Labor Statistics, Current Population Survey: 1992 Annual Averages, unpublished tabulations.
77. Economists recognize this premise as zero elasticity of demand for labor when employers are completely unresponsive to changes in wages. When this is true, employers will hire the same number of workers without regard to the wages they are paid.
Chapter 4 • Occupational and Business Licensing
1. There is little distinction to be made between the licensing of occupations and that of businesses. Licensing a taxi regulates the behavior of the driver; licensing a café, that of the owner.
2. Morris M. Kleiner, “Occupational Licensing,”Journal of Economic Perspectives (Fall 2000): 190.
3. Simon Rottenberg, ed., Occupational Licensure and Regulation (Washington, D.C.: American Enterprise Institute for Public Policy Research, 1980), 2.
4. Bernard Siegan, Economic Liberties and the Constitution (Chicago: University of Chicago Press, 1980), 202.
5. Department of Labor, Occupational Licensing and the Supply of Nonprofessional Labor, Manpower Monograph no. 11 (Washington, D.C.: U.S. Department of Labor, 1969).
6. Siegan, Economic Liberties, 202.
7. Lee Behman, “Demand for Occupational Licensure,” Occupational Licensure, Simon Rottenberg, ed., (1980) 13–25.
8. For a more complete discussion of these and other effects of licensing, see Rottenberg, “Economics of Occupational Licensing,” in Aspects of Labor Economics, a Report of the National Bureau of Economic Research (Princeton, N.J.: Princeton University Press, 1962), 3–20.
9. Rottenberg, Occupational Licensure, 8.
10. New York City Administrative Code (Supp. 1969), para. 436-2.0.
11. Gilbert Gorman and Robert E. Samuels, The Taxicab: An Urban Transportation Survivor (Chapel Hill, N.C.: University of North Carolina Press, 1982), 92; www.ci.nyc.ny.us; www.nypost.com/seven/05302007/news/regionalnews/600g_medallion_not_too_shabby_cabby_regionalnews_paul_tharp.htm (accessed September 17, 2010).
12. See www.nyc.gov/html/tlc/html/misc/avg_med_price.shtml (accessed September 17, 2010)
13. Interview with loan officer of a New York City bank, who requested anonymity.
14. See www.medallionfinancial.com/news-release-5-29-07.htm (accessed September 17, 2010)
15. Technically, the license price can be approximated by:
,
where the superscripts r and o are receipts in a restricted and open market respectively. Thus, Rr – Ro is the difference in receipt accruing from a protected market. The denominator is the interest rate that yields the present value.
16. William Mellor, “Is New York City Killing Entrepreneurship?” www.ij.org/about/component/content/2248?task=view (accessed September 17, 2010).
17. For the entire United States from 1980 to 2002, see www.taxi-liberty.org/safety.htm (accessed September 25, 2010).
18. “Illegal Livery Street Hail Study,” prepared for Taxi Policy Institute, January 2002. www.schallerconsult.com/taxi/.
19. Charles Vidich, The New York Cab Driver and His Fare (Cambridge, Mass.: Schenkman Publishing, 1976), 148.
20. Ibid., 146.
21. Debra Lam, et al., “The San Francisco Taxicab Industry: An Equity Analysis, 2006,” www.taxi-library.org/goldman2006.pdf (accessed September 18, 2010).
22. Leroy Jones, Ani Ebong, Rowland Nwankwo, Girma Molalegne, Quick Pick Cabs, Inc., and Reverend Oscar S. Tillman v. Robert Temmer, Christine Alvarez, and Vincent Majkowski, acting in their official capacities as members of the Colorado Public Utility Commission. Plaintiffs’ Response to Defendants’ Motion to Dismiss, or in the Alternative, for Summary Judgment. Civil Action no. 93-235 in U.S. Dist. Ct. (Dist. of Colo.), 12.
23. Leroy Jones, et al., attached affidavits of the plaintiffs.
24. In the writer’s opinion, this practice differs little from such criminally extortionary practices as protection-money payments to old-time mob bosses.
25. See www.dctaxi.dc.gov/dctaxi/lib/dctaxi/pdf/dcmr/31_D.C.MR_chapter_10.pdf (accessed September 18, 2010)
26. See House Subcommittee on Public Utilities, Insurance and Banking, Committee on the District of Columbia, Taxicab Industry in the District of Columbia, 85th Cong. (1957), 425.
27. House Committee on the District of Columbia, staff report on taxicab regulation (Washington, D.C., 1976), 281.
28. Ibid., 278–296.
29. Fingleton, et. al., The Dublin Market: Reregulate or Stay Queueing? (Dublin: Economics Department, Trinity College, 1997), 6. Cited in Sean D. Barrett, “Regulatory Capture, Property Rights and Taxi Deregulation: A Case Study,” Journal of The Institute of Economic Affairs, vol. 23, no. 4 (Oxford, England: Blackwell Publishing, 2003), 34.
30. “Regulatory Capture,” 35.
31. Ibid., 38.
32. See ij.org/component/content/article/35-economicliberty/817-ny-vans-background (accessed September 18, 2010). See also Darrin Schlegel, “Jitney drivers ready to roll again on city streets,” Houston Business Journal, May 9, 1994.
33. Institute for Justice, Liberty & Law, vol. 8, no. 2 (May 1999): 1. See also Institute for Justice website, www.ij.org.
34. Transcript of the City Council of New York, June 30, 1993, 39–41.
35. Transcript of the City Council of New York, November 22, 1993, 28.
36. Transcript, June 30, 1993, 117.
37. Transcript of the City Council of New York, December 21, 1993, 201–2.
38. Stuart Dorsey, “The Occupational Licensing Queue,” Journal of Human Resources, vol. 15 (Summer 1980).
39. Matthew Shofield, “Great Wichita Hair Debate,” The Kansas City Star, July 4, 1993.
40. In states such as Texas, California, Ohio, and South Carolina, investigators, often accompanied by police, have raided hair-braiding shops, arresting proprietors and intimidating patrons. See Lisa Jones, “Hair Police State,” The Village Voice (New York, September 22, 1998).
41. Sidney L. Carroll and Robert J. Gaston, “Occupational Restrictions and the Quality of Service Received,” Southern Economic Journal 47 (1981): 959–76.
42. Alex Maurizi, “Occupational Licensing and the Public Interest,” Journal of Political Economy (March 1974): 399–413.
43. See Thomas G. Moore, “The Purpose of Licensing,” Journal of Law and Economics (October 1961): 93–117.
44. Walter Gellhorn, “The Abuse of Occupational Licensing,” Chicago Law Review, vol. 6, no. 2, 44.
45. “The Abuse,” 11–12.
Chapter 5 • Excluding Blacks from Trades
1. Lorenzo Greene and Carter G. Woodson, The Negro Wage Earner, (Washington, D.C.: The Association for the Study of Negro Life and History, 1930), 192.
2. Sterling D. Spero and Abraham L. Harris, The Black Worker: The Negro and the Labor Movement (New York: Kennikat Press, 1931), 477–8.
3. The Black Worker, 478–9.
4. Cited in The Black Worker, 480.
5. Cited in The Black Worker, 481.
6. Greene and Woodson, The Negro Wage Earner, 320.
7. Ibid.
8. Spero and Harris, The Black Worker, 68.
9. Thomas O’Hanlon, Fortune, January 1968, 172.
10. Isaac Weld, Travels Through the States of North America and the Providences of Upper and Lower Canada, vol. I (London: J. Stockdale, 1799), 145–52.
11. James Weldon Johnson, Along This Way (New York: Viking, 1937), 32.
12. Cited in Herbert Hill, “The Racial Practices of Organized Labor,” Arthur M. Ross and Herbert Hill, eds., Employment, Race and Poverty (New York: Harcourt Brace & World, 1967), 375.
13. John Stephen Durham, “The Labor Unions and the Negro,” Atlantic Monthly, February 1898, 226.
14. Ibid.
15. Ibid., 227.
16. Hill, “The Racial Practices,” 378.
17. Ibid., 379.
18. Herbert R. Northrup, Organized Labor and the Negro (New York: Harper & Bros., 1944), 1–5.
19. Charles S. Johnson, “Negro Workers and the Unions,” The Survey, April 15, 1928, 114. Cited in David E. Bernstein, “Roots of the ‘Underclass’: The Decline of Laissez Faire Jurisprudence and the Rise of Racist Labor Legislation,” The American University Law Review, vol. 43, no. 1 (Fall 1993): 113.
20. W. E. B. Dubois, “The Denial of Economic Justice to Negroes,” The New Leader, February 9, 1929, 43, 46. See also Dubois, “The Economic Future of the Negro,” Publications of the American Economic Association, 3rd series, vol. 7, no. 1 (February 1906): 219–242,
21. Spero and Harris, The Black Worker, 135.
22. Kelly Miller, “The Negro as a Workingman,” American Mercury, November 1925, 310, 313.
23. Bruce Grit, The Colored America (October 18, 1902), cited in Bernstein, “Roots of the ‘Underclass,’ ” 92.
24. Frederick Douglass, “The Tyranny, Folly, and Wickedness of Labor Unions, New National Era (March 23, 1871), cited in Robert L. Factor, The Black Response to America (Reading, Mass.: Addison-Wesley, 1970), 45; Booker T. Washington, “The Negro and the Labor Unions,” Atlantic Monthly, June 1913, 753–56.
25. William Julius Wilson, The Declining Significance of Race (Chicago: University of Chicago Press, 1980), 150; Edna Bonacich, “A Theory of Ethnic Antagonism: The Split Labor Market,” America Sociology Review, vol. 37 (1972), 547, 553, cited in Bernstein, “Roots of the ‘Underclass’ ”: 93.
26. Johnson, “Negro Workers,” 113–14.
27. John P. Roche, The Quest for the Dream: The Development of Civil Rights and Human Relations in Modern America (New York: Macmillan, 1963), 22.
28. Bernstein, “Roots of the ‘Underclass,’ ” 114.
29. John G. Van Duesen, “The Black Man in White America,” The Journal of Negro History, vol. 24, no. 1 (January 1939): 123–25.
30. This section relies heavily on material drawn from William M. Tuttle, Jr., “Labor Conflict and Racial Violence: The Black Worker in Chicago, 1894–1919,” Labor History 10:3, (1969): 408–32, reprinted in From Reconstruction to the Great Migration, 1877–1917, vol. 4, pt II, ed. Kenneth L. Kusmer (New York: Garland Publishing, 1991), 72–96.
31. “Labor Conflict,” 76.
32. Ibid.
33. Ibid., 77.
34. Ibid., 85.
35. Ibid., 91.
36. Ibid.
37. National Industrial Recovery Act, Pub. L. 48, ch. 10, 195.
38. Harvard Sitkoff, A New Deal for Blacks: The Emergence of Civil Rights as a National Issue (New York: Oxford University Press, 1978), 58, 330–35.
39. Raymond Wolters, Negroes and the Great Depression: The Problem of Economic Recovery (Westport, Conn.: Greenwood Press, 1970), 122–23.
40. Raymond Wolters, “Section 7a and the Black Worker,” Labor History, vol. 10 (1969): 459, 466.
41. Sitkoff, A New Deal for Blacks, 55.
42. Herbert Hill, Black Labor and the America Legal System vol. I, in Race, Work, and the Law (Washington, D.C.: The Bureau of National Affairs, 1977), 100.
43. A. L. A. Schechter Poultry Corporation v. United States, 295 U.S. 495 (1935).
44. Melvin I. Urofsky, The March of Liberty: A Constitutional History of the United States (New York: Alfred A. Knopf, 1988), 671.
45. Hill, Black Labor, 100.
46. Raymond Wolters, “Closed Shop and White Shop: The Negro Response to Collective Bargaining 1933–1935,” Black Labor In America, ed. Milton Cantor (1969), 137, 149.
47. Philip Foner, History of the Labor Movement in the United States: The Policies and Practices of the America Federation of Labor, 1900–1909 (New York: International Publishers, 1964), 215.
48. Sitkoff, A New Deal for Blacks, 52.
49. Morgan O. Reynolds, Power and Privilege (New York: Universe Books, 1984), 125.
50. NLRB v. Jones & Laughlin Steel Corporation, 301 U.S. 1, 30.
51. Larus & Brother Company, 62 NLRB 1075, 1083 (1945).
52. Atlanta Oak Flooring Company, 62 NLRB 973, 975 (1945).
53. Richard K. Vedder and Lowell E. Gallaway, Out of Work: Unemployment and Government in Twentieth-Century America (New York: Holmes & Meier, 1993), table 1.3, 8.
54. Gunnar Myrdal, An American Dilemma (1944), 397–98.
55. Benjamin Shimberg, et al., Occupational Licensing (Washington, D.C.: Public Affairs Press, 1973), 112–13.
56. Occupational Licensing, 113.
57. Ibid., 123.
58. Equal Employment Opportunity Commission, news release, May 19, 1970.
59. Commission on Civil Rights, The Challenge Ahead: Equal Opportunity in Referral Unions (Washington, D.C.: Government Printing Office, May 1976), 25.
60. Herbert Hammerman, “Minority Workers in Construction Referral Unions,” Monthly Labor Review (May 1972): 17–26.
61. Alex Maurizi, “Occupational Licensing and the Public Interest,” Journal of Political Economy (March 1974): 399–413.
62. Spero and Harris, The Black Worker, 269.
63. Ray Marshall, The Negro Worker (New York: Random House, 1967), 57.
64. Department of Commerce, Census of the Population: 1940, vol. 3, The Labor Force, pt. I, table 62.
65. Cited by Herbert Hill, “The Racial Practices of Organized Labor,” in Employment, Race, 203.
66. Letter from C. E. Pane, “Negro vs. White Firemen,” Locomotive Firemen’s Magazine, August 1899, 203–4.
67. Despite a general consensus among today’s public that people should be paid identically if they do identical work, this law is the first step toward handicapping the most disadvantaged group of workers. Pushing for equal wages was the same strategy employed by racist labor unions in South Africa’s mining industry. See Walter E. Williams, South Africa’s War Against Capitalism (New York: Praeger Books, 1989), 71–3.
68. Spero and Harris, The Black Worker, 291.
69. Ibid., 293. Emphasis added.
70. Hill, “The Racial Practices,” 15; Spero and Harris, The Black Worker, 291.
71. Spero and Harris, The Black Worker, 291.
72. Ibid., 296–8.
73. Hill, “The Racial Practices,” 15. See also John M. Matthews, “The Georgia Race Strike of 1909,” Journal of Southern History, vol. 40 (1974): 613, 617–21.
74. 158 U.S. 564, 599, 600 (1895).
75. Erdman Act of June 1, 1898, 30 Statute 424, ch. 370, para. 10, 428 (1898).
76. 208 U.S. 161, 173, 180.
77. 236 U.S. 1, 26 (1915).
78. Senate Committee on the Judiciary, hearings on “Limiting Scope of Injunction in Labor Disputes,” 70th Cong., 1st Sess. (1927), 609–14.
79. Railway Labor Act of 1926, Title 45—United States Code, ch. 347, 44 Statute 577; and amended as Railway Labor Act of 1934, ch. 691, 48 Statute 1185.
80. Railway Labor, 1,185 and 1,187.
81. Spero and Harris, The Black Worker, 22; Ray Marshall, “The Negro in Southern Unions,” The Negro and the American Labor Movement, ed. Julius Jacobson (New York: Doubleday and Company, 1968), 128, 134–35.
82. 137 F2d 817 (D.C. Cir. 1943), rev., 320 U.S. 715 (1943).
83. Brotherhood of Railway and Steamship Clerks v. UTSEA, 137, F. 2nd 817, 78 (U.S. Ct App. D.C. 125, August 2, 1943).
84. For additional problems and examples, see Howard W. Risher, Jr., The Negro in the Railroad Industry (Philadelphia.: University of Pennsylvania Press, 1971), especially chapters 4–7.
85. Steele v. Louisville & NR Co., 323 U.S. 192, 202–203 (1944).
86. 245 Ala. 113,16 So. 2d 416, reversed.
87. Steele, 145.
88. Risher, The Negro in the Railroad Industry. 159–64.
89. Tunstall v. Brotherhood of Locomotive Firemen and Enginemen, 323 U.S. 210 (1944).
90. Charles H. Houston, “Foul Employment Practices on the Rails,” Crisis (October 1949): 269–84.
91. Samuel Gompers, “Talks on Labor,” American Federalationist 12 (September 1905): 636, 638.
92. Hill, “The Racial Practices,” 389.
93. Ibid., 390.
94. Ibid.
95. Samuel Gompers’ Paper: The Making of a Union Leader, ed. Stewart B. Kaufman, vol. 1 (Chicago: University of Illinois Press, 1986), 300–1.
96. Samuel Gompers’ Papers, 390–1.
97. William B. Gould, Black Workers in White Unions (Ithaca, N.Y.: Cornell University Press, 1977).
98. See Franks v. Bowman Transportation Co., 495 F 2d 398 (5th Cir.), cert. denied, 419 U.S. 1050(1974); U.S. v. Navaho Freight Lines, Inc., 525 F 2d 1318 (9th Cir. 1975); Hairston v. McLean Trucking Co., 520 F 2d 226 (4th Cir. 1975); U.S. v. T.I.M.E. - D.C., Inc., 517 F 2d 299 (5th Cir. 1975); Saba v. Western Gillette, Inc., 516 F 2D 1251 (5th Cir. 1975); Rodriguez v. East Texas Motor Freight, Inc., 505 F 2d 66 (5th Cir. 1974); Herrara v. Yellow Freight Systems, Inc., 505 F 2d 66 (5th Cir. 1974); U.S. v. Lee Way Motor Freight, Inc., 505 F 2d 69 (5th Cir. 1975); Bing v. Roadway Express, Inc., 444 F 2d 687 (5th Cir. 1971); U.S. v. Lee Motor Freight, Inc., 6 FEP Cases 274 (C.D. Cal. 1973).
99. Gould, Black Workers in White Unions, 369.
100. United States v. Pilot Freight Carriers, Inc., 6 FEP Cases 280 (M.D., N.C., July 30, 1973) and United States v. Navajo Freight Lines, Inc., 6 FEP Cases 274. (C.D. Cal. June 6, 1973).
101. United States v. Lee Way Motor Freight, Inc., 6 FEP Cases 274 (C.D. Cal., 1973).
102. “Bias in the Cab,” The Wall Street Journal, March 31, 1966, 1 and 6.
103. FEP Cases at 745 and 7 FEP Cases at 729.
104. With employers of truck drivers, many Teamsters locals had formal or informal exclusive-hiring arrangements that required employers to hire drivers on a referral basis from the union hall. That gave wide scope for racial discrimination.
105. John S. Heywood and James H. Peoples, “Deregulation and the Prevalence of Black Truck Drivers,” Journal of Law and Economics, vol. XXXVII (April 1994): 139
106. “Deregulation and the Prevalence,” 141, 148.
107. Ibid., 141.
108. Ibid., 149.
109. Ibid., 150.
110. Ibid., 134.
111. Interstate Commerce Commission, Report on Minority Participation in the Surface Transportation Industry Ex Parte, no. MC-150 (Sub-No. 1) (Washington, D.C.: Interstate Commerce Commission, July 1981), 1.
112. James D. Gwartney, Richard Stroup, and A. H. Studenmund, Microeconomics: Private and Public Choice (New York: Harcourt Brace Jovanovich College, 1992), 290–91.
113. For additional summaries of deregulation results, see Thomas Gale Moore, “Transportation Policy,” Regulation (1988), www.cato.org/pubs/regulation/regv12n3/reg12n3-moore.html (accessed September 20, 2010); Dennis W. Carlton and Jeffrey M. Perloff, Modern Industrial Organization (Glenview, Ill.: Scott, Foresman/Little Brown, 1990), 825–34; Daniel Machalaba, “More Companies Push Freight Haulers to Get Better Rate, Service,” The Wall Street Journal, December 18, 1985, 1.
114. Inc. Magazine, May 1980. CEO Fights Regulators, but Not Regulations.
Chapter 6 • Racial Terminology and Confusion
1. Erica Frankenberg, Chungmei Lee, and Gary Orfield, A Multiracial Society with Segregated Schools: Are We Losing the Dream? (Cambridge, Mass.: The Civil Rights Project, Harvard University, 2003), 67.
2. According to a survey conducted by the Joint Center for Political and Economic Studies, a black, liberal-to-moderate, Washington-based think tank, 88 percent of blacks favor education “choice” plans that include public and private schools. The highest support, 95 percent, comes from blacks with incomes of less than $15,000. Overwhelming backing for various forms of educational choice among blacks, which includes tuition tax credits and vouchers, is found in polls compiled by the Department of Education’s Center for Choice in Education for their report “Public Opinion on Choice in Education.” The percentages of black support are: Georgia (57), Louisiana (64), Illinois (65), Wisconsin (83), Indiana (50), Detroit (53). A Lou Harris Poll published in Business Week (September 14, 1992) reported that 63 percent of Americans think that “Children should be able to attend any school they qualify for including public, parochial, or private schools, with government money going to poor or middle-income children attending” either of the latter two. A Gallup Poll found that 51 percent of the public in general support educational vouchers, while among blacks the figure is 72 percent.
3. Department of Commerce, Bureau of the Census, Subject Reports on marital status for 1960, 1970, and 1980; and Current Population Report P20, nos. 461 and 468, table 1, www.census.gov/population/socdemo/race/interractab1.txt (accessed September 26, 2010).
4. See www.webpresidentsusa.com/AP060303.htm (accessed September 25, 2010).
5. Assortive or nonrandom selection of mating partners with respect to one or more characteristics is positive when like people mate more frequently than would be expected by chance and is negative when the reverse occurs.
6. Gary S. Becker, “A Theory of Marriage: Part I,” The Journal of Political Economy, vol. 81, no. 4. (July–Aug. 1973): 813–46. Mating of “likes”—positive assortive mating—is extremely common, whether measured by intelligence, height, skin color, age, education, family background, or religion, although unlikes sometimes also mate, as measured, say, by an inclination to nurture or succor, to dominate or be deferential. This suggests that traits are typically but by no means always complementary (See Becker, 827.)
7. Kenneth J. Arrow, “What Has Economics to Say About Racial Discrimination?” Journal of Economic Perspectives, vol. 12, no. 2 (Spring 1998): 91.
8. Khiara M. Bridges, “Note on the Commodification of the Black Female Body: The Critical Implications of the Alienability of Fetal Tissue,” Columbia Law Review 102 (January 2002): 143.
9. Adarand Constructors, Inc. v. Pena (1995) 115 S.Ct. 2097, 243. Emphasis added.
10. Diabetes Foundation of Mississippi, Inc., “A High Risk Group—Native Americans Prevalence,” www.msidabetes.org/nativeamericans/html (accessed July 24, 2003).
11. University of Maryland Medicine, “Urological Disorders: Prostate Cancer” (May, 2003), 2g.isg.syssrc.com/urolology-info/proscan.html (accessed July 24, 2003).
12. “Latest News: The Expanding Racial Scoring Gap Between Black and White SAT Test Takers,” The Journal of Blacks in Higher Education (2002), www.jbhe.com/latest/37_b&w_sat.html (accessed July 24, 2003).
13. Jon Entine, Taboo: Why Black Athletes Dominate Sports and Why We Are Afraid to Talk about It (New York: Public Affairs, 2000), 31.
14. Department of Justice, Bureau of Justice Statistics, “Homicide Trends in the U.S. Trends by Race” (2002), www.ojp.gov/bjs/homicide/race.htm#ovrelrace (accessed July 24, 2003).
15. Washington Lawyers Committee for Civil Rights and Urban Affairs, “Public Accommodations: Taxicab Discrimination,” Washington Lawyers Committee Update, vol. 9, no. 1 (Spring 2003), www.washlaw.org/news/update/public accommodations spring 2003.htm_ (accessed July 24, 2003).
16. James Owens, “Capital Cabbies Salute Race Profiling” (1999), home.netcom.com/~owensva/cabbie.html (accessed July 24, 2003).
17. Stephen Rosamond, “What Do You Say or Do in a Public Relations Nightmare,” PMQ Pizza Marketing Quarterly, www.pmq.com/pr_nightmare.shtml (accessed July 24, 2003).
18. Jeffrey Goldberg, “The Color of Suspicion,” The New York Times, June 20, 1999, www.jeffreygoldberg.net/articles/nyt/the_color_of_suspicion.php (accessed July 24, 2003).
19. Ibid.
20. Federal Bureau of Investigation, Crime in the United States, 2006: Uniform Crime Reports, www.fbi.gov/ucr/cius2006/data/table_43.html (accessed July 24, 2003).
21. This is not completely true: one report estimates that approximately 2,600 Negroes become white—i.e., “pass”—each year. See E. W. Eckard, “How Many Negroes Pass?” American Journal of Sociology, vol 52, no. 6 (May 1947): 498–500.
22. Abigail Thernstrom, “The Racial Gap in Academic Achievement,” Beyond the Color Line: New Perspectives on Race and Ethnicity in America (Stanford, Calif.: Hoover Press, 2002).
23. National Center for Education Statistics, 2009, Digest of Education Statistics, nces.ed.gov/programs/digest/d09/tables/dt09_143.asp.
24. Michael Fix and Margery Turner, “Testing for Discrimination: The Case for A National Report Card,” Civil Rights Journal (Fall 1999), www.questia.com/googleScholar.qst?docId=5001896870 (accessed September 25, 2010).
25. The cost of providing auto insurance to women is 50 percent that of men, resulting in women traditionally being charged a premium 60 percent of that charged men. Providing insurance to a 45-year-old woman is 16 percent lower than for a man of the same age. See Daniel Seligman, “Insurance and the Price of Sex,” Fortune, February 21, 1983, 84–5.
26. Glenn B. Canner and Delores S. Smith, “Home Mortgage Disclosure Act: Expanded Data on Residential Lending,” Federal Reserve Bulletin, vol. 77 (November 1991): 859–61. See also, Alicia Munnell, et al., Mortgage Lending in Boston: Interpreting the HMDA Data, working paper (Boston: Federal Reserve Bank of Boston, 1992): 92–97. Since mortgage-denial rates for whites are 6 percent less than for blacks, this study claims that the difference is due to racial discrimination.
27. Paulette Thomas, “Federal Data Detail Pervasive Racial Gap in Mortgage Lending,” The Wall Street Journal, March 31, 1992, 1, A10.
28. Julianne Malveaux, “The Future of Urban Areas,” The Black Scholar, vol. 23, no. 1 (Winter/Spring 1993): 12.
29. Jesse Jackson, “Racism is the Bottom Line in Home Loans,” Los Angeles Times, October 28, 1991, B5.
30. Department of Commerce, Bureau of the Census, Household Wealth and Asset Ownership: 1984, Current Population Reports, Household Economic Studies, series P-70, no. 7 (July 1986), 4–5. See also, William Bradford, “Wealth, Assets and Income in Black Households,” working paper, vol. 1, no. 1 (Afro-American Studies Program, University of Maryland, 1990).
31. Bureau of the Census, Economics and Statistics Administration, Net Worth and Asset Ownership of Households: 1998 and 2000, 2.
32. Net Worth, 14.
33. Canner and Smith, “Expanded HMDA Data on Residential Lending: One Year Later,” Federal Reserve Bulletin, vol. 77 (November 1992): 808.
34. Peter Brimelow and Leslie Spencer, “The Hidden Clue,” Forbes, January 4, 1993, 48.
35. www.freddiemac.com/corporate/reports/cceipoll.htm.
36. Raphael Bostic, “A Test of Cultural Affinity in Home Mortgage Lending” working paper (U.S.C. Lusk Center for Real Estate, February 2002), 37.
37. Walter E. Williams, “Some Hard Questions on Minority Businesses,” Negro Educational Review, vol. XXV, nos. 2 and 3 (April/July 1974): 123–42; Andrew F. Brimmer, “The Black Banks: An Assessment of Performance and Prospect,” The Journal of Finance, vol. 26, no. 2 (May 1971): 379–405.
38. Edward M. Gramlich, “Subprime Mortgage Lending: Benefits, Costs, and Challenges,” speech delivered at the Financial Services Roundtable Annual Housing Policy Meeting, Chicago, Illinois, May 21, 2004, www.federalreserve.gov/boarddocs/Speeches/2004/20040521/default.htm#table, table 3 (accessed September 26, 2010).
39. See www.federalreserve.gov/boarddocs/Speeches/2004/20040521/default.htm#table, table 3 (accessed September 26, 2010).
40. Carrie Teegardin, “Black Atlantans Often Snared By Subprime Loans,” Atlanta Journal-Constitution, November 4, 2007, forums.allsexresources.com/showthread.php?t=138315 (accessed September 26, 2010).
41. Editorial, “Subprime in Black and White,” The New York Times, October 17, 2007, www.nytimes.com/2007/10/17/opinion/17wed2.html (accessed September 26, 2010).
42. See David Caplovitz, The Poor Pay More (New York: Free Press of Glencoe, 1967); Warren G. Magnuson and Jean Carter, The Dark Side of the Market Place (Englewood Cliffs, N.J.: Prentice-Hall, 1968); Frederick Sturdivant, “Better Deal for Ghetto Shoppers,” Harvard Business Review, vol. 46 (March–April 1968): 130–9; Frederick Sturdivant and Walter Wilhelm, “Poverty, Minorities and Consumer Exploitation,” Social Science Quarterly, vol. 49 (December 1968): 643–50.
43. Federal Trade Commission, Economic Report on Installment Credit and Retail Sales Practices of District of Columbia Retailers (Washington, D.C.: Government Printing Office, 1968).
Chapter 7 • Summary and Conclusion
1. Cited in Robert Higgs, Competition and Coercion: Blacks in the American Economy 1865–1914 (London: Cambridge University Press, 1977), 48.
2. Ibid.
3. Ibid.
4. Ibid.
5. Jay J. Coakley, Sports in Society (New York: Times-Mirror Magazine, 1986), 145.
6. The NBA’s Official Encyclopedia of Pro Basketball, ed. Zander Hollander (New York: New American Library, 1981), 151.
7. Barry D. McPherson, “The Black Athlete: An Overview and Analysis,” Social Problems in Athletics: Essays in the Sociology of Sports, ed. Daniel M. Landers (Urbana, Ill.: University of Illinois Press, 1976), 131.
8. Armen Alchian and William R. Allen, Exchange and Production: Competition, Coordination and Control, 2nd ed. (Belmont, Calif.: Wadsworth Publishing, 1977), 322.
9. For a more thorough examination of these principles, see Harold Demsetz, “Minorities in the Market Place,” North Carolina Law Review, vol. 43 (February 1965): 271–99; Alchian and Reuben Kessel, “Competition, Monopoly, and the Pursuit of Pecuniary Gain,” Aspects of Labor Economics (Princeton, N.J.: Princeton University Press, 1962).
10. Allgeyer v. State of Louisiana, 165 U.S. 589 (1897).