Why Come to America to Work?

By Theron Aiken

            The recent debate over illegal immigration should make us aware of some other issues over work in America. It’s ironic that illegal Central and South American immigrants are coming to America to work, one of the cheaper labor markets in the advanced, industrial world. Perhaps we should take this opportunity to focus the debate on what is wrong with working in America rather than focusing on jobs that Americans don’t want to do in the first place being done by illegal immigrants.

            America is the wealthiest country in the world, yet American workers earn less than many other countries. American workers average total annual compensation is $33,195, but ranking ahead of us (in American dollars) is Germany ($50,445), the United Kingdom ($46,451), France ($45,879), Japan ($45,839) and Ireland ($38,259).

            If America is wealthier than all of these countries, why don’t our workers make as much money as workers in those countries? These same countries have the following per capita Gross Domestic Product (the per capita GDP is a measure of the value of all final goods and services produced within a nation in a given year, divided by the average population for the same year): America( $39,935), Germany($33,390), the United Kingdom ($35,548), France ($32,911), Japan ($36,596) and Ireland ($45,675). Only Ireland’s per capita GDP is higher than the United States.

            Part of the disparity in these figures can be attributed to employer contributions to workers’ benefits. For example, American employers contribute an average of $2,196 for Social Security, while in other countries the contribution to a comparable retirement program is much greater: $10,913 in France ,$8,274 in Germany, $5,183 in Japan , $3,219 in Ireland, $2,972 in the U.K., $2,388 in Hungary and $2,385 in the Czech Republic.       

            As many recent reports have indicated, Americans are working longer hours, getting less time off and enjoying nearly stagnant income growth. Workers in many other countries have more time off and shorter work weeks. Outside the United States, many countries have required paid time off, up to as many as 26 days per year in France and 30 days in Germany. In addition, many employers in other countries provide a vacation allowance. For example, in Belgium, employers pay 85% of one month’s pay as a vacation allowance.

            Obviously, the wealth of America is not going to workers. As many columnists, notably Paul Krugman, have pointed out, the rich are getting richer and the poor—well, you know how it goes. America has nearly 400 multi-billionaires and countless multi-millionaires, yet the wealthiest 1% of the population controls 40% of the wealth of the country and the wealthiest 10% control 80% of the wealth. That doesn’t leave much for increases in workers wages or vacation allowances.

            What’s amazing in this country is that there is no revolution looming on the horizon, and it illustrates how, if you keep people distracted (Iraq, abortion, gay marriage, swift boat veterans, etc.), make a few luxuries affordable for even some of our poorest (cell phones, computers, car leases, etc.) and label those who point out the disparities in this country as unpatriotic and un-American, you can keep the peasants off the ramparts.