"I believe that the recent tidal wave of illegal immigration is stifling innovation. With an infinite supply of cheap labor, where is the incentive to spend capital on R&D, uptraining, education? There is none. It's easier to just hire another illegal. This is no different than slave-owners claiming we would fail without slavery. What happened? The industrial revolution. Not bad, eh?"
"Greenspan's policies have kept consumer goods prices from rising too fast, but how about housing? Housing prices have skyrocketed over the last 25 years. Yes, the percentage of home ownership has increased, but how much of that can be explained away by the aging population? Why does your set not consider housing inflation negative? (I'm not just talking rhetoric, here. I'll save that for the next paragraph. I'd acually like to see the breakdown.)"
Housing prices have appreciated not inflated. Housing cannot "inflate." Inflation only applies to currency. Inflation of the US dollar does increase housing prices, but much of the housing has increased at a rate much greater than the rate of inflation for reasons that don't have anything to do with inflation. Increases in real estate values increase the overall wealth of Americans. Everyone who owns real estate benefits. The growing real estate values have brought a great deal of capital into the economy because people are taking money out of their homes and spending it.
I agree that we need to reform immigration policy. I would like to see Bush do more to protect the borders, but I agree with Bush's plan to bring these people into our country legally to provide businesses with the labor they need. If you think housing is expensive now you would not be pleased with the values if we didn't have the cheap labor to build the houses. Isloationist economic policies are the recipe for another depression.
"Housing prices have appreciated not inflated. Housing cannot "inflate." Inflation only applies to currency."
Semantics only. Prices have risen faster than consumer goods, so one could theoretically exchange their shelter for more consumables. Housing prices relative to income and relative to the value of the dollar have gone up. They have, therefore, inflated.
"Increases in real estate values increase the overall wealth of Americans."
Wrong again. (If I had a nickel for everytime someone spouted this dogma...) If you buy a house for $30K and sell it for $100K, you have a theoretical profit. But if it would still cost you the entire $100K to replace the house you just sold, you haven't generated any wealth. There is no net gain. It's a financial shell-game.
"Everyone who owns real estate benefits."
Depends on whether or not you'd like to exchange your shelter for consumables. If so, then yes. If not, then no (see above paragraph for explanation). I would amend this to say 'ONLY those who own real estate benefit'. And generally ONLY those who own a piece of property other than their primary residence. For a prospective home-buyer, the inflated market is not a benefit.
"If you think housing is expensive now you would not be pleased with the values if we didn't have the cheap labor to build the houses."
This would apply only to new housing as there is no labor cost tied-up in an existing residence. Only a very small portion of new housing cost is determined by wages. The lion's share of the cost of a new house is land, raw materials, cost-of-sales, utilities, and developer profits.
I can only speak from anecdotal experience on this where I live. 15 years ago, about 95% of home construction labor was performed by American citizens. Now 75% is done by illegal aliens. Prices have still gone through the roof. Cheap labor has not offset the inflationary pressure of increased demand due to population gains, and scarcity of resources regarding real-estate (they're just not making much land these days).
"Isloationist economic policies are the recipe for another depression."
Economic policies did not cause the Great Depression. That was caused by the combination of an over-valued stock market and poor agricultural practices. There was NO labor shortage during the depression.