We are talking about MONETARY restitution for a MONETARY crime. So your 7-11 strawman is garbage.
"Here if an illegal does not use govt. services, no one has suffered a loss."
This is not true. All the other employees that suffered a depressed wage are victims of the employer's action. All the people that paid higher auto-insurance because illegals didn't are victims. All the people that paid higher health-care costs because illegals used private hospital emergency rooms without paying are victims.
There are a myriad of ways that these employers have shifted a monetary burden onto society at large, not just government-provided services.
So if I make a machine that replaces ten workers, I have depressed wages and need to make restitution.
Exactly.
I agree, but you need to make the illegal make restitution, not the employer. If I hire a babysitter who after leaving my house, cuts her finger and goes to the er and does not pay, do I have to make restitution ?
Your arguments are without merit.
So if I have a citizen employee who does not have auto insurance, the police should come and arrest me.