Victor Perlo in _Economics of Racism_ <





https://www.google.com/search?q=what+is+an+outline+of+victor+perlo%27s+economics+of+racism+I&ie=UTF-8&oe=UTF-8&hl=en-us&client=safari



https://www.jec.senate.gov/reports/96th%20Congress/The%20Cost%20of%20Racial%20Discrimination%20(965).pdf<



HEARING BEFORE THE JOINT ECONOMIC COMMITTEE CONGRESS OF THE UNITED STATES NINETY-SIXTH CONGRESS FIRST SESSION OCTOBER 19, 1979 Printed for the use of the Joint Economic Committee 6&U7 0 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON :1980 For sale by the Superintendent of Documents. U.S. Government Printing Office Washington, D.C. 20402 JOINT ECONOMIC COMMITTEE (Created pursuant to see. 5(a) of Public Law 304, 79th Cong.) LLOYD BENTSEN, Texas, Chairman RICHARD BOLLING, Missouri, Vice Chairman SENATE HOUSE OF REPRESENTATIVES WILLIAM PROXMIRE, Wisconsin ABRAHAM RIBICOFF, Connecticut EDWARD M. KENNEDY, Massachusetts GEORGE McGOVERN, South Dakota PAUL S. SARBANES, Maryland JACOB K. JAVITS, New York WILLIAM V. ROTH, JR., Delaware JAMES A. McCLURE, Idaho ROGER W. JEPSEN, Iowa HENRY S. REUSS, Wisconsin WILLIAM S. MOORHEAD, Pennsylvania LEE H. HAMILTON, Indiana GILLIS W. LONG, Louisiana PARREN J. MITCHELL, Maryland CLARENCE 3. BROWN, Ohio MARGARET M. HECKLER, Massachusetts JOHN H. ROUSSELOT, California CHALMERS P. WYLIE, Ohio JOHN M. ALBERTINE, Executive Director Louis C. KEAUTHOFF II, Assistant Director-Director, SSEC RIcHARD F. KAUFMAN, Assistant Director-General Counsel CKAaLxs H. BRADFORD, Minority Counsel (H) CONTENTS WITNESSES AND STATEMENTS FRIDAY, OCTOBER 19, 1979 Mitchell, Hon. Parren J., member of the Joint Economic Committee, Page presiding: Opening statement _ __ _ _ _ _ _ _ _ _ -_-_-_ 1 Humphrey, Melvin, Director, Research and Hearings Advisory Group, Equal Employment Opportunity Commission, Washington, D.C 5 Perlo, Victor, professor, New School for Social Research, New York, N:Y- 9 SUBMISSIONS FOR THE RECORD FRIDAY, OCTOBER 19, 1979 Mitchell, Hon. Parren J.: Research paper entitled "An Estimate of the Loss in Potential Gross National Product Due to Existing Employment, Productivity, and Wage Differentials Between White and Nonwhite Workers in the United States" - _------ _-- _- _- 2 Perlo, Victor: Prepared statement __…_-_ -_ - 13 _ (III) THE COST OF RACIAL DISCRIMINATION FRIDAY, OCTOBER 19, 1979 CONGRESS OF THE UNITED STATES, JOINT ECONOMIC COMMITTEE, Washington, D.C. The committee met, pursuant to notice, at 10:32 a.m., in room 210, Cannon House Office Building, Hon. Parren J. Mitchell (member of the committee) presidingo Present: Representative 'Mitchell. Also present: David W. Allen and M. Catherine Miller, professional staff members; Mark Borchelt, administrative assistant; Katie MacArthur, press assistant; and Mark R. Policinski, minority pro- fessional staff member. OPENING STATEMENT OF REPRESENTATIVE MITCHELL, PRESIDING Representative MITCHELL. Good morning. The hearing will now come to order. Today we shall hold a hearing to address the issue of economic disparities that exist between white and black America. The focus of this hearing will be to develop costs associated with economic disparities and to provide a background for an analysis of the costs of discrimination. As a Member of Congress, I have been a proponent of economic growth and programs targeted to meet the needs of the minority community. I am reasonably sure that my colleagues have become annoyed when I constantly refer to the disparity of unemployment and the disparity of rates between blacks and whites. In fact, I have earned a name, a reputation as the economic care- taker of the black community. I am not at all sure that is apropos, but nevertheless, it is there. We discussed the disparity in unemployment and suggested remedies to suggest a more equitable dispersion of its effects, yet we have not acknowledged that economic disparity is costing the black community in foregone revenues. Today, we want to address the issue of this revenue loss or imposed cost caused by institutional barriers preventing economic parity. We have asked for and received from the Congressional Research Service a research paper which is an estimate of the loss in potential gross national product due to existing employment, productivity, and wage differentials between white and nonwhite workers in the United States. This paper measures the potential increase in the Nation's output assuming a hypothetical situation in which economic differentials did not exist, while at the same time assuming other crucial accommodating economic activity. (1) 2 Using 1978 data, this paper shows that nonwhite workers would have gained $9.7 billion in personal income if their unemployment rate and median salary were commensurate with their white counter- parts. Due to excessive rates of unemployment targeted to the non- white community, there was a $9.7 billion loss in personal income. That factor, coupled with a calculation of $27.9 billion that could have been generated by nonwhite workers, who were already em- ployed, had they received the same median full-time annual wages and/or salaries as white workers, totals $37.6 billion in foregone per- sonal income in the nonwhite communities of America in 1978. In 1 year, the nonwhite communities of America lost $37.6 billion due to racial disparities of the community. Today wve have two witnesses who will address the issue of the costs of racial disparities in the economy. I am delighted to say that both persons are friends and persons whom I have known for a long period of time and individuals for whom I have a very happy and utmost respect. Mr. Melvin Humphrey, who is the Director of Research for the U.S. Equal Employment Opportunity Commission, will discuss his research and conclusions in measuring the costs of racial disparities. Mr. Victor Perlo, who is a private consultant and professor at the New School of Social Research, New York, N.Y., will discuss his ex- tensive research in the area of racial disparities. Gentlemen, it is so very kind of you, both of you, to take the time to be here. I know what your schedules are. I know what the demands are on you. I would suggest that we hear from both of you, and then we will move into the question period. At this point I will place in the hearing record the research paper I referred to in my opening statement. [The research paper follows:] AN ESTIMATE OF THE Loss IN POTENTIAL GROSS NATIONAL PRODUCT DUE TO EXISTING EMPLOYMENT, PRODUCTIVITY, AND WAGE DIFFERENTIALS BETWEEN WHITE AND NONWHITE WORKERS IN THE UNITED STATES (By Charles C. Ciccone, specialist in business and labor economics, and John D. Fisk, analyst in labor economics, Economics Division, Congressional Research Service, Library of Congress) ACKNOWLEDGEMENTS The authors wish to acknowledge the thoughtful comments and help of Dr. Everson Hull, specialist in macroeconomics in the Con- gressional Research Service. Of course, any shortfalls in the paper must be attributed to the authors. This analysis estimates the loss in potential 1978 U.S. gross national product (GNP) in current dollars due to existing differentials in employment levels, pro- ductivity and average wages between white and non-white workers., This report measures the potential increase in the Nation's output assuming, as instructed by the requester, a hypothetical situation in which the differentials did not exist, and assuming other crucial accommodating economic activity. Average produc- tivity, employment, and wages are presumed to be equal to that prevailing for white workers. This report makes no attempt to isolate particular causes for the existing dif- ferentials in employment, productivity, and wage levels. Rather, the analysis recognizes that many current or past causes may exist, including: (a) Unequal skill and educational levels; (b) racially discriminating hiring and pay raise policies; 1 We refer to current 1978 dollars. 3 (c) unequal health care and housing; (d) differences in labor market mobility;