Outstate Minnesota City Aided by Immigrants

As noted in a prior post, a banker in Worthington, a city in the southwestern corner of Minnesota, estimated immigrants own more than a quarter of the businesses operating in that community. “If we embrace it, it’s what’s going to help rural Minnesota grow again.”

This report was amplified in an August 4 article in the StarTribune, Minnesota’s leading newspaper while another recent article addressed the general problems of outstate Minnesota.

 Additional Report on Worthington, Minnesota[1]

This city’s population has surged from fewer than 10,000 in 1990 to more than 13,000 today and its residents expect it to exceed 14,000 in the near future with immigrants constituting roughly one-third of the population.  And the median age is under 36.

Some of the immigrants are entrepreneurs, who described the difficulties they had in getting their businesses started and frustration over lack of stores with their favorite foods and police forces still almost exclusively locally born white people. But they still expressed optimism about their future in this community.

One of the largest employers in the town, JBS USA pork processing plant, has employees who are native speakers of at least 50 languages and dialects. The company seems supportive of its largely immigrant workforce with its human resources director helping an immigrant community form their own church.

Worthington recently was visited by  Neel Kashkari, the president of the Minneapolis Federal Reserve Bank. At a community meeting in the town he said, “If you do the math, there are three choices we have as a society. One choice is just accept slower growth. A second choice is to subsidize [human] fertility. Or number three, you can embrace immigration. Now the advantage we have in the U.S. is that, while we are not perfect, we are better than just about any other country at embracing immigrants and integrating them in our society.”

 “A Social Contract for Rural Minnesota”

Another recent article in the StarTribune lamented the struggles of “many of our smallest towns . . . to stay relevant” as their aging populations decline.[2] The author, Jim Mulder, the retired executive director of the Association of Minnesota Counties and an adjunct professor at the University of St. Thomas in St. Paul and a policy fellow at Growth and Justice, therefore, proposed a Social Contract for Rural Minnesota with the following six elements:

  1. Education. Develop “new tools and strategies for educating children in sparsely populated areas. . . . [that] focus on outcomes, not on structure and process.”
  2. Health care. With a “shortage of physicians, dentists and mental health professionals . . . . [we must use] mobile health clinics, . . .by housing county social service and public health officials [closer to the people, by aggressively using] nurse practitioners and physician assistants [and by providing ] transportation services for the elderly to get to care providers].”
  3. Housing. Provide assistance to residents to meet their housing needs, including improving the housing quality.
  4. Transportation. Invest in better roads and bridges and transit of all types.
  5. Public infrastructure. Fund and build right-sized water and sewer systems.
  6. Economic development. Increase jobs.

Analysis of the Social Contract for Rural Minnesota

Although I liked the idea of a social contract for rural Minnesota, I thought the one proposed by Mr. Mulder missed the key issue. Therefore, I wrote the following letter to the Editor of the StarTribune, which was published on August 5:

  • “While I agree with Jim Mulder that we need “a shared commitment to success for one Minnesota” (“One Minnesota: Your undivided attention, please,”Opinion Exchange, July 29), his “Social contract for Rural Minnesota” misses the point.”
  • “We all know that rural Minnesota has an aging and declining population, which underlies all the problems he seeks to address. Thus, these parts of the state need more and younger people, and the obvious source of such people is more immigration. This point was made by an editorial in the Mankato Free Press that the Star Tribune reprinted (“The immigrant workforce: It’s critical for Minnesota’s economy,” July 24).”
  • “Thus, the social contract requires development of welcoming rural communities for people from all over the world.”

====================================

[1] Schafer, Immigration and Immigrants are a positive force in Worthington, StarTribune (August 5, 2018).

[2] Mulder, One Minnesota: YOUR UNDIVIDED Attention, Please, StarTribune at OP1 (July 29, 2018).

Criticism of Cuba’s New Regulations for Private Enterprise

Cuba’s 126 pages of new regulations for private enterprise (cuentapropistas), which were published on July 10, have been criticized by U.S. economist Richard Feinberg, a professor at the University of California San Diego’s School of Global Policy and Strategy and a Fellow at the Brookings Institution. He calls them “the revenge of the bureaucrats,” who are jealous of those in the private sector who are making much more money than employees of struggling state enterprises.[1]

The new regulations contain details about potential violations, penalties and fines, oversight and performance requirements. For example, an operator of a private day-care facility must devote at least 21.5 square feet per child plus provide a detailed inventory of personal toiletry items.

These regulations also are designed to virtually guarantee that most private businesses will not grow beyond 20 employees. For example, once a private employer hires more than 20 employees, the 21st employee must be paid six times the average wage for the first 20 employees.

In short, private enterprise is fine so long as they “don’t get too rich, diversify their businesses, open branches, try to evade taxes, resort to the black market, or provide too much competition to the state sector.” Indeed, a major motivation for the regulations is to halt growing inequities between ordinary Cubans and those in the private sector.

Moreover, the new regulations do not allow “for white-collar professionals to work for themselves, . . . private entrepreneurs to directly import for their businesses, and there is no recognition of their businesses as legal entities” and no provision for the creation of wholesale markets for the private sector.

These criticisms of the regulations were echoed in a  recent Cuban public opinion poll carried out by the CubaData Project with a team of academics from Cuba, Mexico and Venezuela. 87.6% believe that Cuban professionals should be able to establish businesses and businesses within their professions. In addition, a high percentage of those surveyed believe other political parties should be permitted and that the election of the island’s president should be direct.[2]

==============================

[1] Whitefield, New Cuba regulations for private enterprise on the island have a long list of don’ts, Miami Herald (Aug. 2, 2018). See these posts to dwkcommentaries.com: Cuba Announces New Regulations for Private Business (July 10, 2018); More Details on New Cuban Regulations for Private Business (July 11, 2018); Comment: Yet More Details on Cuba’s New Regulations for Private Business (July 13, 2018).

[2]  Survey: Cubans want more autonomy for their business, political pluralism and elect president, Diario de Cuba (July 30, 2018).

Good News: Increasing U.S. Travel to Cuba

A website for travel professionals reports that recently U.S. travel to Cuba is increasing. It cites Tom Popper,  the president of InsightCuba, which specializes in travel to the island, who says it has seen an increase of 30% for such travel in May, June and July 2018 over the prior year.[1]

One of the problems many U.S. nationals encounter in planning a trip to Cuba is not finding flights to Cuba on Expedia, TripAdvisor or Orbitz. This is due to such businesses wanting to avoid hassling with the airlines that fly to the island having an obligation to the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) for confirming that U.S. nationals on such flights are going there for a legal reason under the OFAC regulations.

The airlines, however, have no such difficulty because when you buy a ticket to fly to Cuba, you merely have to hit “accept” on the affidavit pop-up that you are traveling under one of 12 general licenses for U.S. legal travel to Cuba, which are described on OFAC’s website. The traveler, therefore, before buying a ticket must carefully review that website and determine which of the following 12 general licenses fits the planned trip:

  1. family visits;
  2. official business of the U.S. government, foreign governments, and certain intergovernmental organizations;
  3. journalistic activity;
  4. professional research and professional meetings;
  5. educational activities;
  6. religious activities;
  7. public performances, clinics, workshops, athletic and other competitions, and exhibitions;
  8. support for the Cuban people;
  9. humanitarian projects;
  10. activities of private foundations or research or educational institutes;
  11. exportation, importation, or transmission of information or information materials; and
  12. certain authorized export transactions.

U.S. travelers to Cuba also need to review this OFAC statement (para. 32) about spending in Cuba by “persons subject to U.S. jurisdiction:”

  • “There is no specific dollar limit on authorized expenses; however, in accordance with the NSPM [National Security Presidential Memorandum], OFAC is amending the CACR [Cuban Assets Control Regulations] to restrict persons subject to U.S. jurisdiction from engaging in direct financial transactions with entities and subentities identified on the State Department’s Cuba Restricted List, with certain exceptions. See 31 CFR § 515.209 and § 515.421. Consistent with these authorizations and restrictions, authorized travelers may engage in transactions ordinarily incident to travel within Cuba, including payment of living expenses and the acquisition in Cuba of goods for personal consumption there. In addition, travelers are authorized to acquire in Cuba and import as accompanied baggage into the United States merchandise for personal use only. Value imports remain subject to the normal limits on duty and tax exemptions for merchandise imported as accompanied baggage and for personal use.” (Emphasis added.)

As this OFAC statement indicates, the U.S. State Department has published its “List of Restricted Entities and Subentities Associated with Cuba as of November 9, 2017.” Direct transactions with these entities and subentities by “persons subject to U.S. jurisdiction” are prohibited. The State Department also has published “Frequently Asked Questions on the Cuba Restricted List (Nov. 8, 2017).”

Finally Americans thinking about going to Cuba should know that the two major carriers to the island—Delta and American—have taken over many routes abandoned by other airlines and with the experience of the last several years have figured out the best size of aircrafts and frequency of flights to Cuba from the gateways of New York City, Houston, Atlanta and Miami. The result? Round-trip tickets to Cuba from these gateways are inexpensive, such as $300 from JFK in New York.

The traveler will be aided in all of this by working with a company, like InsightCuba, that specializes in travel to the island.

====================================

[1] Cogswell, Under the Radar, Cuba Market Comes Back, travelmarket report (Aug. 1, 2018).

Difficulties in Diversifying Sections of the U.S.

This blog consistently has advocated the need for more immigrants in the U.S., especially in those states, mainly rural, with declining and aging populations.[1] Several  recent articles have emphasized difficulties in pursuing such a goal.

Northern New England[2]

Northern New England has an aging, declining and overwhelmingly white population in a “huge collection of very, very small towns.” These states—New Hampshire, Vermont and Maine—therefore, need new residents, including immigrants.

A major obstacle to attracting new residents is the presence of the huge presence of whites. The  reasons for this white population “stem from a variety of factors, including a lack of big urban areas, where jobs are more plentiful, [where] a wider range of housing is available and [where] cultural differences are a little more accepted than in smaller places.”

According to Peter Francese, a demographic analyst based in Exeter, N.H., “’Housing is at the core of why there aren’t more immigrants — there’s no place for them. An ethnic person who wants to come in with a family of four or five people is not going to find a home they can afford, and there’s almost no rental housing whatsoever.’ In addition, Northern New England has the nation’s highest concentration of second homes, making the housing market especially tight.”

In addition, he said, “much of any newer housing is only for people 55 or older. If developers built housing for younger people, they would likely have children, which means a need for schools, which means higher property taxes — anathema in a place like New Hampshire, which has no income tax.”

Some New Hampshire residents came up with the following ways the state could enhance its ability to draw people of different backgrounds: “a better understanding of licensing and skills that refugees bring with them so they could more easily work here; a system of rewarding businesses that hire a more diverse array of workers; a central location with a database, speakers’ bureau and training opportunities that could help companies understand what ‘diversity and inclusion’ means and how it could benefit them; and a focus on keeping workers as much as hiring them in the first place, since many leave after finding the state inhospitable.”

A possible solution to the woes of Northern New England is a new program, Welcome Home, which is sponsored by the International Rescue Committee, a nongovernmental organization that globally provides services to displaced people, and TripAdvisor and which has started in New York City and Northern California. This program seeks to provide refugees “an understanding of where they now live and help them integrate into their new communities.[3]

Some Whites’ Difficulties in Adjusting to Minority Status

There is a need for everyone to have understanding and empathy for some white persons who are  thrust into a situation in the U.S. where they are now in the minority.

This was the theme of a sensitive article about Heaven Engle, a 20-year old white woman who does not know the Spanish language while working in a rural chicken plant where virtually all of the other workers are Latina or Latino who do not speak English. During the work-day she often feels lonely, alienated and frustrated. She also feels threatened. This takes place in Fredericksburg, Pennsylvania, with a mainly white and conservative population of 1,500, isolated in Lebanon County, population 140,000, which is becoming more Hispanic.[4]

Racialized U.S. Politics[5]

This young white woman’s perspective ties in with a column about U.S. “racialized” politics by David Leonhardt, a former Washington bureau chief for the New York Times. He asserts, “American politics have become more racialized over the last decade. Over the long term, that trend will probably help the Democrats — the party of the country’s growing demographic groups. In the short term, though, it presents some real risks.” (Emphasis added.)

“Many white Americans,” he continues, “felt threatened by both . . .[Obama’s] election and the country’s increasing diversity.” Then “Trump ran the most race-obsessed campaign in decades . . . . [and] won the White House, thanks largely to a surge in white support across the upper Midwest, the Florida panhandle and elsewhere.”

Now “Trump and other top Republicans have made clear that they plan to continue their racialized strategy. They evidently think it’s their best chance to win elections. Cynical as their approach is, they may be right.” Why? “About 68 percent of the voting-age citizen population is white non-Hispanic. . . .  and “these whites vote more often than nonwhites.” Moreover, “when white people are frequently reminded of their racial identity, they tend to become more politically conservative.”

===================================

[1] E.g., More Immigrants Needed in U.S., dwkcommentaries.com (June 23, 2018).

[2] Seelye, New Hampshire, 94 Percent White, Asks: How Do You Diversify a Whole State? N.Y. Times (July 27, 2018).

[3] Vora, From Trip Advisor, a Program to Help Refugees Get to Know the U.S., N.Y. Times (July 31, 2018).

[4] McCoy, White, and in the minority, Wash. Post (July 30, 2018).

[5] Leonhardt, The  Politics of ‘White Threat,’ N.Y. Times (July 31, 2018); Klein, White threat in a browning America. Vox (July 30, 2018).

 

Outstate Minnesota Newspaper Stresses Need for Immigrants

Mankato is a regional center of nearly 41,000 people in south central Minnesota. Its newspaper,The Mankato Free Press. has endorsed the importance of immigrants in the rural parts of the state. It said in an editorial, “Here, in the south-central area of the state, we have seen . . . reliance on a diverse workforce both in small cities and in the regional center of Mankato. Meat plants in St. James, Madelia, Butterfield and Windom [smaller cities in southwestern Minnesota] depend heavily on minority workers. Mankato manufacturing plants also hire immigrant workers and a number of immigrants have become small-business owners.”[1]

Moreover, they are “the only population group still growing in Minnesota, according to the Center for Rural Policy and Development, a nonpartisan, not-for-profit policy research organization based in Mankato. The Minnesota State Demographic Center says the percent of Minnesota’s population represented by people of color (those self-identifying as one or more races other than white, and/or Latino) is projected to grow from 14 percent in 2005 to 25 percent by 2035.”

“So no matter what people’s level of acceptance of diversity is on a personal level, the reality is that the economy needs immigrants — and always has. Hoping young people will return to their rural hometowns after college to work is not happening, at least not in numbers needed to keep communities viable.”

“Population projections predict that as baby boomers retire, enough workers won’t be available to fill the vacant jobs in Minnesota. Our newest segments of population are going to be key to keeping our businesses going. And a continuing tradition of strong public education in Minnesota, with the financial support it deserves, should help train those workers of today and tomorrow.

This editorial was prompted by recent remarks by Neel Kashkari, the President of the Federal Reserve Bank of Minneapolis, and by Greg Raymo, a Worthington, Minnesota banker. Kashkari said, “immigrants are helping [Worthington] grow, something many communities in rural parts of the state can only hope for’ while Raymo had “estimated immigrants own more than a quarter of the businesses operating in that community. ‘If we embrace it, it’s what’s going to help rural Minnesota grow again,’ said . . . Raymo.”

This editorial reiterates points made in previous posts to this blog.[2]

==================================

[1] Editorial, Our view: Immigrants needed for healthy economy, Mankato Free Press (July 14, 2018).

[2] E.g., More Immigrants Needed in U.S., dwkcommentaries.com (June 23, 2018).

New Perspective on Different Social Class Attitudes Toward Immigrants

A  new perspective on different attitudes towards immigrants by U.S. elites and non-elites has been provided by Joan C. Williams of the University of California-Hastings College of Law.[1]

Williams’ Thesis

“As recently as the 1990s, Harvard sociologist Michèle Lamont found that working-class men in the New York City area held generally positive attitudes toward immigrants, describing them as ‘family oriented’ and ‘hard workers, just like us.’”

“More recently, however, many working-class men express different attitudes towards immigrants.” Williams attributes this to stagnant real wages. She says “real wage growth for the working class has been abysmal for a generation, and for many native-born blue-collar workers the culprit seems obvious—immigration. “My fiancé’s worked at the same company for 21 years and it’s a union [job], and they are hiring Mexicans,” one Trump voter told the Public Religion Research Institute. “And I don’t want to be racial, but that’s all they’re hiring. He makes like $31 an hour, and they’re coming in at making like $8 an hour.”

Although “economists have demonstrated immigration’s positive effect on gross domestic product, . . .that misses a crucial point: People don’t live the averages. They live where they live, and see what’s in front of them. In 2016 Donald Trump won far more counties than Hillary Clinton did—but Mrs. Clinton’s roughly 500 counties represented two-thirds of GDP. Mr. Trump won in regions left behind.”

Today , Williams continues, “less than half of Americans born in the 1980s earn more than their parents did, according to a National Bureau of Economic Research study led by Harvard economist Raj Chetty. Antitrade and anti-immigrant voices offer a clear explanation of why good jobs left the U.S. (free trade), and why the jobs that replaced them pay less (immigrants).”

“Those who believe otherwise need to communicate an alternative explanation and recognize that anti-immigrant fervor reflects cultural as well as economic divides.” These people primarily are what she calls “global elites, “ who “pride themselves on their cosmopolitanism. Some younger elites reject the notion of national borders entirely.”  Indeed, many of these people “seek social honor by presenting themselves as citizens of the world. And many are, with membership in global networks dating to their college years or earlier.”

Such attitudes or beliefs are rejected by “many blue-collar whites [who] interpret this as a shocking lack of social solidarity. They are proud to be American because it’s one of the few high-status identities they can claim.” They “tend to stay close to home because they rely on a small circle of family and friends for jobs, child care and help patching that hole in the roof.”

“Driven in part by their contrary lifestyles and networks, elites and non-elites hold radically different core values. A 2007 study published in the Journal of Personality and Social Psychology found that elites focus on achievement and individuality, while the working class prizes solidarity and loyalty—values that bind members to their communities.”

“This class culture gap is also fueled by what sociologist Arlie Russell Hochschild calls ‘feeling rules’ in her book, ‘Strangers in Their Own Land.’ These unwritten rules govern who deserves sympathy and who doesn’t. Elites’ feeling rules mandate empathy for immigrants, viewed as vulnerable people separated from their families or fleeing persecution, gangs or conflict. This empathetic human-rights lens contrasts sharply with the neoliberal lens elites use for blue-collar Americans, who are often viewed as dimwitted and fat. Homer Simpson is emblematic.”

“All this has created a toxic environment in both the U.S. and Europe.”

Williams’ Suggested Remedies

Williams provides three suggestions for members of the elite class to try to turn things around.

“The first is to recognize that the nation-state matters greatly for non-elites in developed countries. . . . Dismissing national pride as nothing more than racism is a recipe for class conflict and more racism. Better by far to embrace national pride, balance it with concern for those outside the nation, and refuse to allow racism to pose as national pride.”

“The second, . . .highlight the ways President Trump’s immigration and trade policies are hurting red-state constituencies that voted for him. Critics can point to farmers unable to find farmworkers, small-business owners unable to find dishwashers, and construction workers hit hard by steel tariffs.”

“The third step is to fight the scapegoating of immigrants by ensuring that hardworking Americans without college degrees can find good jobs. Economist Branko Milanovic has found that people in the bottom half of rich, developed countries’ income distributions have seen ‘an absence of real income growth’ since 1988. What’s happening, Mr. Milanovic argues, is the ‘greatest reshuffle of individual incomes since the Industrial Revolution.’ [Indeed,] the Bureau of Labor Statistics reports that average wages fell last year for nonsupervisory workers in the U.S.”

“There’s no inherent reason why native-born blue-collar workers should be anti-immigrant. They often hold similar attitudes toward hard work and family values. Elites who sympathize with immigrants do themselves no favors by dismissing the working class as too bigoted or too stupid to recognize the economic benefits of immigration. Instead they should actually try to make the case and address the causes of anti-immigrant scapegoating.”

Conclusion

These suggestions make sense although I would add the following as elements to ameliorating the class divide: publicizing the many ways that today’s immigrants enhance the life and economy of the U.S.; emphasizing the need for immigrants in the many parts of this country with declining, aging populations; and reminding everyone of the many injustices that faced prior immigrants who are our ancestors.

There also is a profound need, especially for members of the elite and for individuals in both camps to find ways to meet and have respectful conversations about these problems.

==========================================

[1] Williams, The Elites Feed Anti-Immigrant Bias, W.S.J. (July 9, 2018).  Williams is a  Distinguished  Professor of Law  at the University of California, Hastings College of Law, Chair of the UC Hastings Foundation and the Founding Director of the Center for WorkLife Law. She also is the author of “White Working Class” (Harvard Business Review, 2017). She has degrees from Yale University (B.A., History), MIT (M.A., City Planning) and Harvard Law School (J.D.).