"A Massive Economic Development Boom" That's what legalizing undocumented immigrants would unleash

business week ^ | 7-18-05

[bayourod]

----SNIP----

Q: How is the undocumented immigrant community affecting the U.S. economy? A: First and foremost, it's a source of value added. The total goods and services that they consume through their paycheck, plus all that they produce for their employers, is close to about $800 billion.

They're also producing at relatively lower costs because the undocumented population typically gets about 20% less in wages than if they were legalized. That leads to lower prices for us and higher profits to employers.

In addition, they're obviously a huge consumer base. We've seen that 90% of the wages that the undocumented population gets are spent inside the U.S. Remittances are sent abroad, but that only represents about 10% of immigrants' income. The numbers are becoming quite huge. We estimate about $50 billion dollars in remittances this year. That means that total consumptive capacity remaining in the U.S. is $400 billion to $450 billion.

[cartman90210]

Then, what are you suggesting?

[bayourod]

"To show the seriousness and resolve of the American people on this issue."

They've showed their opinion in city after city across this nation that have told their local police to leave their undocumented workers alone and not to cooperate with the federal authorities who want to deport them.

That's why the Antis don't want enforcement left up to the people who live and work in the same community as the illegals. Instead the Antis demand that President Bush force states and local governments to do what the Antis want to be done.

[cartman90210]

They've showed their opinion in city after city across this nation that have told their local police to leave their undocumented workers alone and not to cooperate with the federal authorities who want to deport them.

Uh, you got that backwards, pal.

The laughs just keep a-comin'!

[jayhorn]

I'm watching UFC on FSN (I'm so sophisticated) and I'm thinking if this illegals argument with bayourod were a fight, the ref would have called it long ago. The human body could never take the kind of abuse bayourod's arguments are taking on this forum.

bayourod, throw in the towel, buddy. You're risking brain dam ... uh, nevermind.

[cartman90210]

'He coulda been a contenduh!"

[Dat Mon]

ARTICLE..."They're also producing at relatively lower costs because the undocumented population typically gets about 20% less in wages than if they were legalized. That leads to lower prices for us and higher profits to employers."

hmmmmm......the author apparently screwed up his talking points..he's getting ahead of himself.

Why would employers of illegals want Bush's guest worker proposal enacted in the first place? If illegals now become legal...and the bill succeeds magically in drastically cutting down the flow of illegals as its promised...then their profits drop by 20% with a guest worker bill. Or else the authors statement above is BS. If you factor in insurance...I think its much more than 20%.

Employers should be for the status quo...but mysteriously....somebody appears to actually be in FAVOR of said guest worker bill....I hear its the...employers!

Who in your opinion is lobbying for this bill...besides you, Bush, and Vincente.

If I as an employer can get all the illegals I want now because we have no border security...and they pass a guest worker bill with the same border security...hell...I just keep getting more and more illegals....and keep those nice 20% higher profits coming in. My financial inducements haven't changed at all.

Oh...but NOW we'll get serious and start going after the employers. With what...we don't have the personnel and infrastructure to do the job NOW...lets add 20 mil to be processed...and start adding yet more illegals to the mix.

As Ive said before...this all is so childishly obvious...why some people cant get it is because they don't WANT to get it.

[A Balrog of Morgoth]

Illegals have always been our friends and allies...blah blah blah



Newsflash for the in-house "undocumented worker" soothsayer: They broke the law to enter this country. They break the law every day they remain. Employers who knowingly hire them are breaking the law.

That ought to count for something.

Continue to post an ever shifting kaleidescope of rationalization of the problem.

It's amusing.

Sad, too.

[grey_whiskers]

You must be out of your mind.

For decades the United States was the pre-eminent economic power in the world...without resorting to outsourcing or illegal immigration to provide labor.

The problem is those few at the top of the corporate food chain who are getting just a little MORE greedy...they remember the days of the robber barons, but are prevented by US laws (and, alas, for awhile, by union thugs) from implementing those policies on US soil, against US citizens.

So they outsource and bring in illegal immigrants.

Presto! No social security tax, medicaid, insurance, benefits, retirement...

and wages 20% less to boot!

[cartman90210]

I repeat: what are you suggesting?

[bayourod]

"No social security tax, medicaid, insurance, benefits, retirement"

It's illegal to fail to withhold taxes. Companies get audited by the IRS. Some very small employers without accountants try to cheat the IRS whether their employees are legal or illegal.

You have swallowed the myths of immigration.

[Kozak]

What is missing from this is trading legalization en masse for the imposition of real border controls. Unless that happens any legalization program will be muted in its beneficial impact by the continued presence of illegals.

Exactly. Been there, done that. We granted an amnesty to illegals in the 80's, THEN didn't enforce the laws on hiring, we now have 3 times as many illegals as we did then.

[grey_whiskers]

"No social security tax, medicaid, insurance, benefits, retirement"

It's illegal to fail to withhold taxes. Companies get audited by the IRS. Some very small employers without accountants try to cheat the IRS whether their employees are legal or illegal.

You have swallowed the myths of immigration.

No, you just don't read very carefully. I was considering BOTH illegal immigration, and outsourcing. Maybe you forgot the tax laws about US corporations profits re-invested overseas...

And you have definitely forgotten about, or suppressed, under-the-table cash payment to illegals here.

[cartman90210]

Yo Swampy,

You're not answering me. What do you mean by "employees that look illegal"? Their skin color? If not, then what?

[judgeandjury]

It's illegal to fail to withhold taxes. Companies get audited by the IRS. Some very small employers without accountants try to cheat the IRS whether their employees are legal or illegal.

How can it be proven that a company failed to withhold taxes if that company pays its illegal alien employees with cash?

[bayourod]

"How can it be proven that a company failed to withhold taxes if that company pays its illegal alien employees with cash? "

IRS auditors are trained to do just that. They have tables of ratios for every type business and can spot deviations.

For example an IRS table may show that for drywall contractors the labor costs should approximately equal 25% the cost of the drywall. So that if a contractor's books show $400,000 expended on drywall, his labor cost should be $100,000. If he's only showing $20,000 labor cost the auditor sizes him up for a prison jump suit. They also have ratios for gross income, number of times inventory turns per year, etc... Even something simple such as rent for a pizzeria averages 5%.

[AEMILIUS PAULUS]

Grant, for the sake of argument, an economic
"boom" results from the invasion. This "boom" is not worth the disintegration of our cultural, social and political institutions.

[Terabitten]

We've seen that 90% of the wages that the undocumented population gets are spent inside the U.S. Remittances are sent abroad, but that only represents about 10% of immigrants' income.

Fuzzy math?

[TheForceOfOne]

They come here to work in order to take their saving home to Mexico where they live like kings. Most of the money illegals earn goes to Mexico, not into the U.S. economy.

[Terabitten]

They've showed their opinion in city after city across this nation that have told their local police to leave their undocumented workers alone and not to cooperate with the federal authorities who want to deport them.

You've apparently not been to *my* city yet.

[Terabitten]

It's illegal to fail to withhold taxes. Companies get audited by the IRS. Some very small employers without accountants try to cheat the IRS whether their employees are legal or illegal.

My FRiend... the entire reason people hire illegals in the first place is because they don't pay taxes on them! And as far as "very small employers without accountants" goes, there's an *awful* lot of them. If they didn't mind breaking the law to hire illegals, they won't mind breaking the law to not pay taxes.