Wages rise... hmmm... you mean businesses have to compete to attract legal citizens instead of just importing illegal workers. Competition leads to technical innovation. Innovation leads to increases in productivity.
Where C=available capital W=available workforce E= societal efficiency (technology, level of education, hours worked per person, et c.,.)
C x W x E = National GDP.
Standard of living = GDP/W.
You would suggest that the only way to increase the GDP is by increasing W. That is a logical fallacy. Our population, W, is currently in no danger of declining. The population where I live is exploding.
Productivity has been rising quite nicely. Real wages, however, were down last year. Wasn't because of a labor shortage. It's because our E factor isn't going up. There's no competitive pressure between domestic companies for it to go up due to the flood of cheap labor.
Point is, an expanding economy gives no net gain to the average citizen if it's purely a factor of population growth. The only way to increase our standard of living is through innovation. Inflation will never stop altogether. It's a product of expanding world population and scarcity of resources. An expanding national population will inevitibly lead to further inflation in housing prices.
PS - Why is it your set considers inflation bad, except when it's housing inflation? Please illuminate this poor ignorant soul. I tend to run on common sense, which runs contrary to most of what you're selling.
Forgot one point...
The other reason for a decline in the overall standard of living is the fact that our government spending is increasing relative to our GDP.
As for business competing to attract legal citizens(I guess you mean workers?), the domestic labor supply is inelastic. It doesn't make any difference how much an employer raises wages, there are only so many workers available, that is why it is inflationary. The exception to this is that over a couple of generations of high birth rate, the labor supply would rise.
As for your statement regarding the population, I can only suggest you take a look at the demographic data. Compare the birth rate to the immigration rate. Notice how the mean age is rising. Etc,Etc.
The US has a long, successful history of importing its economic underclass, don't look for that to change.