Analysis Of Boom Bust, Exodus

1375 Words3 Pages

“Boom, Bust, Exodus” was drastically different than the other immigration books I have read. The author, Chad Broughton was draw to stories that showed industrial capitalism, globalization and economic issues in an economic yet personal way. The book depicts the economic and public history of two very different cities; Galesburg in Illinois and Reynosa at the Mexican border. The connection of these two cities is that Maytag’s primary manufacturing plant was shut down in Galesburg to be moved to Reynosa. This move was done for purely economic reasons but had tremendous positive and negative effects on both city’s economy and community. “Boom, Bust, Exodus” highlights a different side of immigration; where companies outsource their labor and …show more content…

Once the war ended, soldiers returned home to find a prosperous economy with innovations and jobs. Sub-sequentially, in 1950 and 1960, the commodity industry was booming and citizens had disposable money to spend (Broughton 27). Manufacturing towns such as Galesburg saw immense prosperity. In ten years leading up to 1974, manufacturing jobs increased by 62% in 1974 and the area was quickly coined Appliance City (Broughton 33). However the economy started to shift and these companies needed to find ways to cut their costs and remain competitive to make a profit. For the decision makers in these firms, “everything boiled down to economics… what can a company do to reduce or minimize their costs” (Broughton 82). Instead of attracting cheaper labor, Maytag and other manufacturing companies relocated their plants in less developed companies, such as Mexico. This environment provided cheaper resources of all kinds. Maytag closed its Galesburg facility to open one in Reynosa Mexico and several other companies did the same. From 1998 to 2003, the United States lost three million manufacturing jobs (Broughton 64). This drastically killed American towns that were reliant on these jobs. Towns such as Galesburg lost their jobs and became a ghost …show more content…

Under this development, foreign companies could set up plants within 100 miles of the United States/Mexico border. These were known as maquiladoras (Broughton 5). Maytag and other manufacturing companies took advantage of this opportunity for the cheap labor, land, resources and thus ability to be more profitable. Maquiladora employment tripled to 1.3 million in 2001, since 1990 (Broughton 142). Maytag’s plant was called Planta III and required less jobs and less skilled labor than what was required in Galesburg. This was good for the company’s bottom line, but bad for employees. The employers had complete control since labor was so easily replaceable. The workers began to be looked at as machines; interchangeable and dispensable and thus were not getting a fair wage. In Mexico the average cost for one week of food was $81 but maquiladora employees would only get paid $36 per week (Broughton 152). Maquiladoras also hurt the local and national Mexican economies. Locals would say that “the only thing maquiladoras have done is occupy the workforce … they don’t resolve any of the problems they generate…overpopulation, lack of social services, school and health care. All of this is what the maquiladoras have brought” (Broughton 153). These companies were simply there to make a profit and provide jobs, not to enrich the employee’s or communities lives. The profits from

Open Document