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This file contains a collection of documents primarily focused on the economic and social issues surrounding the apparel industry in the United States, as well as a section detailing research on Hispanic issues in California. Key points regarding the apparel industry (Pages 10-26):
- Declining Domestic Employment: The U.S. apparel industry faces a bleak future with a significant trade deficit and foreign competitors offering much lower wages. Employment in the domestic apparel industry is expected to continue falling.
- Impact of Imports and Productivity: While macroeconomic studies often attribute job loss more to productivity improvements, input-output analyses suggest that imports have dramatically reduced domestic job opportunities, particularly for female and minority workers. The value of apparel imports has skyrocketed, growing approximately 15% annually after 1980, creating a substantial trade deficit.
- Managed Trade (MFA): National policy has historically tried to control textile and apparel imports through tariffs and multilateral agreements like the Multifiber Agreement (MFA). However, the MFA has not effectively stemmed import penetration or market disruption. It encourages foreign producers to move into higher-value products or unregulated categories.
- Corporate Strategies: Domestic apparel firms are increasingly choosing to move production offshore (e.g., through Item 807 plants) to compete on cost, or to shift focus to design, distribution, and merchandising, with manufacturing done outside the U.S. Item 807 of the Tariff Schedule provides an incentive for offshore assembly by only taxing the value added to U.S.-manufactured components.
- Job Loss Consequences: The loss of jobs in the apparel industry disproportionately affects women and minorities. Displaced workers often face longer unemployment periods and significantly lower earnings in subsequent jobs.
- Impact on Unions: International trade has eroded the domestic employment base and contributed to declining union membership and strength in the apparel industry.
Key points regarding research on Hispanic issues in California (Pages 1-9):
- Senate Concurrent Resolution No. 43 (SCR 43): This resolution, filed in September 1987, requests the University of California to initiate efforts to coordinate state resources for a comprehensive approach to problems facing California’s Hispanic population. These issues include health, education, employment, government participation, housing, welfare, criminal justice, and immigration policy.
- UC’s Response: The University of California has undertaken a major project to assess the needs of the Hispanic population and propose a research agenda. The SCR 43 Task Force, led by UC MEXUS Director Arturo Gómez-Pompa, involves faculty, staff, students, community representatives, and public officials from all UC campuses.
- Juan Vicente Palerm’s Involvement: Dr. Juan Vicente Palerm, Director of the Center for Chicano Studies at UC Santa Barbara, is actively involved in the SCR 43 Task Force, specifically coordinating work on immigration and settlement patterns. His previous IUP-supported research on Chicano/Mexican farmworkers assisted his participation in this effort. He plans to prepare a proposal for the Rural Economic Policy Program.
- Funding Challenges: The Ford Foundation informed Dr. Palerm that their program does not support individual, university-based Latino research centers for research or program development, preferring to work through national networks like the IUP. They suggested he finalize his IUP manuscript and send it with new research ideas for potential support.
