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Does a day make a difference? Many businesses were closed, but the economic impact doesn't appear to be major.


The mass demonstrations that drew some half million immigrants and their supporters to the streets of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  last week had a symbolic impact perhaps not equaled since the days of Vietnam War Vietnam War, conflict in Southeast Asia, primarily fought in South Vietnam between government forces aided by the United States and guerrilla forces aided by North Vietnam.  protests.

Less certain was the economic effect.

Many of the organizers of the two May 1 marches had a stated goal of crippling the economy in Los Angeles and elsewhere as a way of highlighting the important role of immigrants--legal and otherwise--in the region. But it's far from clear that was achieved.

Indeed, many restaurants, warehouses, small shops and other businesses closed their doors; goods movements practically halted at the ports; and strawberries and other fruits and vegetables went unpicked un·pick  
tr.v. un·picked, un·pick·ing, un·picks
To undo (sewing) by removing stitches: unpick a seam. 
 in fields across the state.

But economists said the actual, short-term dollar impact was likely small, if it even could be measured--though there's an argument that the long-term effects could be substantial if it results in a stronger union movement that drives up wages and benefits.

"I think the focus is misplaced mis·place  
tr.v. mis·placed, mis·plac·ing, mis·plac·es
1.
a. To put into a wrong place: misplace punctuation in a sentence.

b.
. I think the real economic impact is the added confidence it gives to immigrant workers in Los Angeles," said Goetz Wolff, a professor of regional economic development in UCLA's Department of Urban Planning urban planning: see city planning.
urban planning

Programs pursued as a means of improving the urban environment and achieving certain social and economic objectives.
. "Mindless quantification does not take into account social networking See social networking site.

social networking - social network
. Think about the Vietnam War; we counted all those dead bodies but lost the war."

Even so, preliminary economic estimates last week by the Los Angeles County Economic Development Corp. placed the economic impact at about $55 million in lost wages and production, as well as a multiplier that took into account lower purchasing and other losses by businesses.

That figure may rise to $100 million when all the data has been gathered, but still those losses have to be measured against the size of the county's economy. The most populous in the country, Los Angeles County generates some $1.2 billion each day in economic output, which would make it the 16th largest economy in the world if it were its own country.

"Basically you had a significant business interruption, but put it into the perspective that the county is a $1.2 billion a day affair," said Jack Kyser, a senior economist with the development corporation. "You can characterize it as a hiccup hiccup or hiccough, involuntary spasmodic contraction of the diaphragm followed by a sharp intake of air, which is abruptly stopped by a sudden, involuntary closing of the glottis (opening between the vocal cords); the consequent blocking of air , and I think probably a lot of the impacts were ironically felt by the Latino community."

Displaced activity

One of the key reasons that the economic impact was so small was that it was planned in advance, allowing participants and others to prepare for the shut down.

For example, while some 90 percent of short haul Short distance. Short haul implies traversing a small geographic area such as a few miles at most. Contrast with long haul. See line driver. , independent truckers did not show up for work at the ports of Los Angeles and Long Beach, port officials said the shipping complex had recovered by the end of the week.

Part of the quick recovery: some extra shipping was done on Sunday in anticipation of the boycott, and then additional shipping was done in the days following the Monday demonstrations.

"Ultimately, the trucker boycott on Monday was akin to a national holiday--cargo was delayed, but no real economic impact, and it took the terminals about a day to recover," said Theresa Adams-Lopez, spokeswoman for the Port of Los Angeles The Port of Los Angeles is located on San Pedro Bay in the San Pedro neighborhood of Los Angeles, approximately 20 miles (30 km) south of downtown. Also called Los Angeles Harbor and WORLDPORT LA .

Esmael Adibi, director of Chapman University's Anderson Center for Economic Research and an expert on the Southern California economy, said the difficulty in measuring the impact of any boycott is that it's hard to determine what economic activity is truly lost.

While wages might be truly foregone (though they can be made up in overtime in some cases), consumption and production losses are far harder to measure.

"It's basically a delay in spending, or something that was already spent. And sure it did have some impact on production, but we don't believe it has been very significant. You could make that up quickly the day after," said Adibi, who agreed with Kyser the overall losses were relatively minimal. However, union organizers were counting on the marches as way of politically energizing energizing,
adj giving energy to; revitalizing; rejuvenating.
 the immigrant community in response to legislation on Capitol Hill that would make illegal immigration a felony.

Wolff said the mass demonstrations would also have a spillover spill·o·ver  
n.
1. The act or an instance of spilling over.

2. An amount or quantity spilled over.

3. A side effect arising from or as if from an unpredicted source:
 effect of energizing the area's unions, which under U.S. law can organize workers even if their immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important.  status is undocumented.

"Workers are treated as workers first, whether they are documented or not is second," Wolff said. He added that increases in wages and benefits would add overall dollars to the economy, since national and international firms, who make a share of their profits outside of Los Angeles, employ many immigrant workers.

LAURENCE DARMIENTO

Managing Editor
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Author:Darmiento, Laurence
Publication:Los Angeles Business Journal
Geographic Code:1U9CA
Date:May 8, 2006
Words:762
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