Tag Archives: economy

No Longer Made-In-China?

Early Light Toy Factory Shenzhen China

NPR explores why the familiar “Made in China” print may be less common in the future:

Factory workers demanding better wages and working conditions are hastening the eventual end of an era of cheap costs that helped make southern coastal China the world’s factory floor.

A series of strikes over the past two months have been a rude wakeup call for the many foreign companies that depend on China’s low costs to compete overseas, from makers of Christmas trees to manufacturers of gadgets like the iPad.

Where once low-tech factories and scant wages were welcomed in a China eager to escape isolation and poverty, workers are now demanding a bigger share of the profits. The government, meanwhile, is pushing foreign companies to make investments in areas it believes will create greater wealth for China, like high technology.

Or, perhaps, manufacturers will shift their operations to other areas of the country:

Given the intricate supply chains and logistics systems that have helped make southern China an export manufacturing powerhouse, such changes won’t be easy.

But for manufacturers looking to boost sales inside fast-growing China, shifting production to the inland areas where many migrant workers come from, and costs are lower, offers the most realistic alternative…

Massive investments in roads, railways and other infrastructure are reducing the isolation of the inland cities, part of a decade-old “Develop the West” strategy aimed at shrinking the huge, politically volatile gap in wealth between city dwellers and the country’s 600 million farmers.

Gambling that the unrest will not spill over from foreign-owned factories, China’s leaders are using the chance to push investment in regions that have lagged the country’s industrial boom.

One sociologist sees this as potentially a large-scale shift:

Many of today’s factory workers have higher ambitions than their parents, who generally saved their earnings from assembling toys and television sets for retirement in their rural hometowns. They are also choosier about wages and working conditions. “The conflicts are challenging the current set-up of low-wage, low-tech manufacturing, and may catalyze the transformation of China’s industrial sector,” said Yu Hai, a sociology professor at Shanghai’s Fudan University.

bankruptcy in 21 seconds or less

Lest you think that sociologists are not discovering things relevant to your day-to-day life, rest assured. Sociologist Dan Myers of Notre Dame, along with his son, claims to have discovered the shortest possible Monopoly game.  As reported on NPR:

The shortest possible game of Monopoly requires only four turns, nine rolls of the dice, and twenty-one seconds, Daniel J. Myers, a professor of sociology at Notre Dame University, told NPR’s Robert Siegel…

In short, here’s what has to happen:

“One player moves around the board very quickly, to buy Boardwalk and Park Place, and places houses on them,” Myers explained. “And the other one ends up drawing a Chance card that sends them to Boardwalk, and they don’t have enough money to pay the rent with three houses, and the game is over.”

So, what is the statistical probability of that particular game happening?

The odds are very, very, very slim.

Statistically speaking, it would happen “once every 253,899,891,671,040 games,” Josh Whitford, an assistant professor of sociology at Columbia University, says.

Not only is this discovery fun, it’s also not without its sociological parallels. From Myers’ interview with NPR’s Robert Siegel:

SIEGEL: Monopoly, famously, was popular in the Great Depression, when people were going broke. And now, you’ve come back during the Great Recession of the 21st century, with this theory.

Mr. MYERS: Yeah, well, there have been some comments out on the blogosphere about how it’s representative of what’s going on in our economy, that people could go bankrupt so quickly. We didn’t intend to parallel but certainly, it’s been drawn by a number of people out there.

Myers’ next project will be the shortest possible game of Risk.

SIEGEL: Well, what will fill the void, now, that’s occupied you for the past few weeks?

Mr. MYERS: Well, we’ve been getting suggestions from those out in the blog world. So the next one is to try to play the shortest possible game of Risk.

SIEGEL: Which you think might be more complicated or…

Mr. MYERS: I think it will because making someone go bankrupt isn’t quite as complicated as world domination.

sticker shock

silver and goldA new study finds that it now costs approximately $60,000 a year for a family of four to survive in Philadelphia without government assistance, reports The Philadelphia Inquirer.  This actual cost of living is almost three times as much as the federal poverty level:

The $60,000 figure reveals that there are many more people who are having trouble making it, said Carol Goertzel, president and chief executive of PathWays PA, a Delaware County advocacy group for which the standard was prepared.

Advocates say the Pennsylvania study demonstrates that years of stagnating wages and growing income inequality have taken a toll, making it harder for working people to survive.

“Everybody is feeling hard times right now because of the recession,” said Carey Morgan, executive director of the Greater Philadelphia Coalition Against Hunger. “We like to blame and judge certain people and say they’re poor” because of inner failings, Morgan said. “But in the past couple of years, we see it can happen to anybody. This study is a wake-up call.”

Unable to stretch their wages to cover basic necessities, families lack adequate income to meet the costs of food, housing, transportation, and health and child care, wrote sociologist Diana Pearce, who prepared the study. These families are “nevertheless not deemed poor by the official federal poverty measure,” she added.

americans moving…barely

u-haulRecent data released by the Census Bureau have sociologists and demographers abuzz about mobility in the U.S. The Christian Science Monitor reports:

Americans are moving again, following a recession-induced plunge in mobility. But the mobility rate is still at historic lows as housing costs and few job opportunities keep many Americans hunkered down.

Some 37.1 million Americans, or 12.5 percent of the population, moved in 2009, according to the Census Bureau. That’s up – barely – from 11.9 percent the previous year, the lowest the US mobility rate has been since the Bureau began tracking it in 1948.

A normal rate during good economic times, such as in the 1990s, is between 15 and 17 percent.

A sociologist comments:

“What the [recession] has done is frozen people in place,” says Kenneth Johnson, a senior demographer at the Carsey Institute and a professor of sociology at the University of New Hampshire in Durham. “I’ve never seen changes of this magnitude in so short a period: It’s stunning for demographers.”

Another expert weighs in on the economic effects of lower mobility:

But the fact that the mobility rate is still very low is bad news for the economy, says Richard Florida, professor of US urban theory at the University of Toronto.

“Mobility is the cornerstone of the American economic backbone,” says Professor Florida, author of the new book “The Great Reset.” “Our economy has been premised on flexibility and mobility. Our workforce has always better able to move to where jobs and opportunities are.”

One demographer explains why local vs. long-distance moves might be problematic:

“It’s not good news,” says William Frey, chief demographer at the Brookings Institution in Washington. “It only ticked up for local moves, not long-distance moves. I think the latter is a more significant story than the former – more college-educated people, more young people trying to move up in their careers. They are the lifeblood of migration and growth.”

Another concerning although consistent trend: People with incomes below the poverty line were more likely to move locally – and less likely to make long-distance moves – than others.

But experts see at least some positives of lower mobility:

Moving tends to take a toll on people. Staying put, by contrast, reaps social benefits like stronger family and community connections. Communities with lower levels of mobility tend to enjoy higher levels of trust and well-being, Mr. Frey says.

“People have their kids around them longer. There’s a stronger sense of community, but you’d like to think that would happen more for voluntary reasons,” he says.

unintended consequences of immigration

Video of the International Workers Day march in MinneapolisThe San Bernadino Sun recently reported on Louisiana State University sociologist Edward Shihadeh’s recently published research on the effect of Latino immigration on black labor market participation:

not necessarily empty nesters

This week, the New York Times explores the increasing number of 20- and 30-somethings living with their parents:

In 1980, 11 percent of 25-to-34-year-olds were living in multi-generational households. By 2008, 20 percent were.These sons and daughters of baby boomers living with their parents again have been labeled boomerangers.

The biggest increases were registered in these categories: nonwhite, foreign-born young men who had never been married, and college graduates. …

Last year, 37 percent of 18-to-29-year-olds were unemployed or no longer looking for work. Ten percent of young adults, ages 18 to 34, said in the Pew survey they had moved back with their parents because of the recession. Two in 10 are full-time students, a quarter are unemployed, and about a third said they had lived on their own before returning home.

Commentary from CUNY sociologist:

“As the great recession has deepened and the job market has become tighter and tighter for young people, most especially those from minority backgrounds, more and more return or never leave the parental nest,” said Prof. Andrew A. Beveridge, a sociologist at Queens College of the City University of New York. “If such a trend continues or deepens, the economic crisis may be creating a true ‘Failure to Launch’ generation.”

Read more.

struggling Americans blame those with less

The Philadelphia Inquirer recently examined Americans’ tendency to turn on the poorest members of their society during hard economic times:

Last month, Lt. Gov. Andre Bauer of South Carolina said that when the government helps the poor, it’s like people feeding stray animals that continually “breed.”

And just last week, Colorado state legislator Spencer Swalm said poor people in single-family homes are “dysfunctional.”

Both statements riled some Americans from the Piedmont to the Rockies and underscored a widely held belief: In tough times, people are tough on the poor.

It’s not just politicians playing the blame game, either:

In an April 2009 poll by the Pew Research Center in Washington, 72 percent agreed with the statement that “poor people have become too dependent on government assistance programs.” That’s up from 69 percent in 2007.

“The economic downturn has made the middle class less generous toward others,” said Guy Molyneux, a partner at Hart Research Associates, a Washington firm that researches attitudes toward the poor. “People are less supportive of the government helping the poor, because they feel they’re not getting enough help themselves.

The Inquirer also featured sociological commentary on the phenomenon:

Matt Wray, a sociologist at Temple University, agreed: “Hatred of the poor is fueled by the middle class’s fear of falling during hard times.”

Americans don’t understand how the poor are victimized by a lack of jobs, inefficient schools, and unsafe neighborhoods, experts say.

“People ignore the structural issues – jobs leaving, industry becoming more mechanized,” said Yale sociologist Elijah Anderson, renowned for his study of the Philadelphia poor. “Then they point to the poor and ask, ‘Why aren’t you making it?’

the skinny on fat

Day 167/365 - Pure EvilMany skinny Americans are fed up with obesity, reports the Los Angeles Times:

“Americans as a society are getting fed up with the matter of obesity. No doubt about it,” said Douglas Metz, chief of health services for American Specialty Health, a San Diego-based company that offers wellness programs to employers. “Some pockets of society are taking positive action, and unfortunately others are taking negative action. That’s what happens when a society hasn’t figured out what the fix is.”

Recent notable actions include:

* A recent and ultimately unsuccessful plan at Lincoln University in Pennsylvania sought to take the body mass index of every enrolling student and require the obese to lose weight or take a fitness class before they could graduate.
* In Mississippi, legislators tried to pass a bill to let restaurants prohibit obese people from dining.
* In an interview with the New York Times last August, Toby Cosgrove, chief executive of the Cleveland Clinic, one of the nation’s largest medical centers, provoked national outrage when he said that, if it were up to him, he would stop hiring the obese. He later apologized for his remarks.
* Last summer in Florida, animal rights activists at People for the Ethical Treatment of Animals (PETA) took aim at heavy women in a “Save the whales” billboard campaign that featured an overweight, bikini-clad woman. It read: “Lose the blubber. Go vegetarian.” Angry reactions caused the organization to remove the signs.

Statistics about obesity are being assessed in the current debates on how to reduce the nation’s health care costs:

A report by Emory University researchers projected last November that by 2018 the United States could expect to spend $344 billion on healthcare costs attributable to obesity. Obesity-related costs would account for 21% of healthcare spending, up from 9.1% today, said the report, sponsored in part by the United Health Foundation and the American Public Health Assn.

Providing a different take on the issue, it’s time to call in the sociologist:

“In our society, being heavy has become more of a stigma lately because we’re struggling with other issues of consumption,” says Abigail Saguy, associate professor of sociology at UCLA.

The economic climate, a recent history of people buying more than they can afford as well as environmental issues, including the depletion of our planet’s resources, are making people feel more angry about society’s overconsumption, she says. Obviously overweight people are an easy target.

“They’re almost a caricature of greed, overconsumption, overspending, over-leveraging and overusing resources,” says Saguy. “Though it’s not entirely rational, it’s an understandable reaction, especially in a country founded on the Puritan ethics of self-reliance, sacrifice and individual responsibility. If people feel they’re sacrificing, then see someone spilling over an airplane seat, they feel angry that that person is not making the same sacrifices they are.”

Research indicates that discrimination based on weight has been increasing in recent years:

Rebecca Puhl, a researcher at Yale University’s Rudd Center for Food Policy and Obesity, published [two papers] last January — one in the journal Obesity, the other in the International Journal of Obesity — Puhl reported that weight discrimination in the United States increased 66% over the prior decade.

“Weight discrimination is highly prevalent in American society and increasing,” said Puhl, who cites several possible reasons. Among them are a lack of legislation to prohibit weight discrimination and an increase in media coverage of obesity (up fivefold from 1992 to 2003). Most media framed the problem of obesity as one of personal responsibility, she reported.

the importance of the immigrant middle class

The Los Angeles Times reports on the importance of the middle class for the city’s future, with special emphasis on middle class Latinos:

With this year’s census likely to show a Latino majority in both the city and county of Los Angeles, it’s obvious that our collective future is linked to the social health of that group of people. And if you think of Latinos only in the dysfunctional terms described in so many media reports, then a Third World L.A. seems like an inevitability.

While the experiences of poor and working-class Latino immigrants are often the focus of scholars and the media, other immigrants may go unnoticed:

You might not think about L.A.’s Latino middle class much. But USC sociologist Jody Agius Vallejo has eschewed more exotic topics to investigate its middling peculiarities.

Agius Vallejo’s research looks at the “pathways to success” that allow even people of humble immigrant origins to reach middle-class status. Her work rebuts the widespread perception that Mexican immigrants and their offspring are following what she calls a “trajectory of downward mobility into a permanent underclass.”

More on Agius Vallejo’s research:

Agius Vallejo interviewed 80 subjects who possessed at least three of these four characteristics: college educations, higher than average income, white-collar jobs and home ownership. Seventy percent of the people in her sample grew up in “disadvantaged” communities. Their parents had, on average, a sixth-grade education.

The members of this arriviste Mexican middle class might look like their white counterparts on paper, Agius Vallejo said. But in other ways they are different. Among other things, they have stronger social ties to poorer relatives.

Another of Agius Vallejo’s subjects is a lawyer who has recently visited jail (to bail out a cousin) and the social-security office (to help an uncle). Relatives turn to the lawyer in times of need because “she’s the one in the family with knowledge,” Agius Vallejo said. “She’s the one who’s made it to the middle class.”

Each person who achieves social mobility improves the overall well-being of the community. Social climbers show others behind them the way forward. “The future of the city really hinges on the mobility of immigrants,” Agius Vallejo told me.

The importance of the immigrant middle class extends beyond the city of Los Angeles, though:

A healthy middle class with Latin American roots is critical to the entire country’s future too. That’s what another USC professor, Dowell Myers, argues in his book “Immigrants and Boomers: Forging a New Social Contract for the Future of America.”

Myers, a demographer, says our aging country needs to invest in its younger, immigrant communities as an act of self-preservation. Immigrants’ incomes and rates of homeownership rise the longer they stay in this country, he writes, and provide potential members of the taxpaying middle class that will fund the retirement of the boomer generation.

theft by gift card

Courier LoveThe New York Times reports a rise in employee theft via gift cards:

At the Saks flagship store in Manhattan, a 23-year-old sales clerk was caught recently ringing up $130,000 in false merchandise returns and siphoning the money onto a gift card.

“Gift card fraud is spiking,” said Joshua Bamfield, author of the Global Retail Theft Barometer, an annual international survey of retailers. “To employees, this is like currency. It’s almost as good as the U.S. dollar.”

Gift card fraud is growing portion of overall retail theft:

Employee fraud involving gift cards appears to be growing sharply as retailers struggle to contain overall theft, now estimated at $36 billion a year in the industry, or 1.51 percent of retail sales, according to a leading national study. Even as total sales have been falling, employee theft and shoplifting have been rising across the United States, industry experts say, with occasional arrests making headlines.

Many of the gift card crimes are straightforward, frequently involving young sales clerks and smaller amounts than the Saks theft. Among the variations of such crimes, cashiers often do fake refunds of merchandise and then, with the amount refunded, use their registers to electronically fill gift cards, which they take. Or sometimes when shoppers buy gift cards, cashiers give them blank cards and then divert the shoppers’ money onto cards for themselves.

A criminologist who studies employee theft comments:

“The retail industry has come to the realization that, as the Pogo comic strip said, ‘We have met the enemy, and he is us,’ ” said Richard C. Hollinger, the survey’s principal author and a professor of criminology at the University of Florida.

The most common type of employee theft is “sweethearting,” in which cashiers fail to ring up or scan goods that friends or relatives present at the register, Professor Hollinger said. Stealing from the till remains a problem, too. But with gift cards continuing to grow in popularity, they are an increasingly easy target.

And…

Professor Hollinger says the rate of theft is greatest among retailers with high turnover rates and many part-time workers, who may be less loyal and under more financial pressure than full-time workers.

He also found higher theft among younger workers. “Older workers know they have a lot more to lose — promotional opportunities, health insurance, 401(k)’s and pensions,” Professor Hollinger said.