From "Outliers the Story of Success"
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Free 10-min PreviewThe Garment Industry and Meaningful Work
Key Insight
Unlike many other immigrant groups, Eastern European Jewish immigrants, such as the Floms, Borgenichts, and Janklows, often arrived in America with valuable urban occupational skills. For centuries, forbidden from owning land in Europe, they had clustered in cities, developing trades like tailoring, dressmaking, and piece goods handling. Approximately 70 percent of Eastern European Jews passing through Ellis Island before World War I possessed such skills, with a significant majority experienced in the clothing trade. Louis Borgenicht, for example, had years of experience in 'Schnittwaren Handlung' (cloth and fabric handling) from age twelve, while his wife, Regina, had run a dressmaking business since age sixteen.
New York City's garment trade, from the late nineteenth to mid-twentieth century, was the city's largest and most economically vibrant industry, manufacturing more clothes than any other city globally. This booming industry desperately needed the specific skills possessed by these Jewish immigrants, making their arrival 'extraordinary good fortune,' akin to a software programmer with 10000 hours of experience arriving in Silicon Valley in 1986. By 1900, control of the garment industry had largely shifted to these newcomers, who 'worked like madmen at what they knew,' rapidly establishing businesses.
The garment industry was highly entrepreneurial with low barriers to entry. Establishing a small contracting business required minimal capital, typically around $50 for a few sewing machines at the turn of the twentieth century. This decentralized structure allowed individuals like Louis and Regina Borgenicht, who started by making and selling aprons for ten and fifteen cents, to quickly move from street vending to hiring employees and opening factories, even branching into new products like petticoats and dresses for clients including Bloomingdale's within three years of arriving. This work offered 'complexity, autonomy, and a relationship between effort and reward,' providing deep fulfillment, market research skills, manufacturing knowledge, and negotiation experience, which were invaluable lessons for their children and grandchildren, empowering them to 'shape the world to their desires.'
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