Immigration and Outsourcing: How to Pit Cheap Labor Against the American Middle Class
American Economic Alert ^ | Wednesday, May 24, 2006 | William R. Hawkins
Posted on 05/25/2006 11:02:05 PM EDT by A. Pole
I took a long road trip last week and was delighted to hear the unanimity among conservative radio hosts in favor of halting all illegal immigration on my car radio. They also denounced President George W. Bush’s TV address a few nights before offering "guest worker" status to millions who had entered the United States without permission. I had expected these views from Laura Ingraham and Sean Hannity, but was somewhat surprised by the strong language of Rush Limbaugh and Neal Boortz.
Limbaugh is a Republican Establishment icon, usually very supportive of President Bush. Yet he was praising a nation-wide grassroots conservative revolt against the GOP leadership. He said the revolt was spearheaded by city elections in Herndon, Virginia, just outside Washington, DC. On May 9, the incumbent mayor and most of the city council were replaced by candidates who opposed to the creation of a "day labor" site catering to illegal workers (and their illegal employers) that the defeated incumbents had funded. Only one of the council members who supported the site was re-elected. Limbaugh added other issues of concern to conservatives, such as failure to fight hard enough in Iraq and excessive domestic spending by a GOP-controlled Congress. But it is clear that immigration is what has the grassroots up in arms.
Neal Boortz was surprising for a different reason. He is a libertarian; an advocate of capitalism and minimal government. Most people of this ideology are for unrestricted migration, placing the desires of individual people and business firms ahead of national concerns and government policy. Yet, Boortz was extremely critical of the Senate, declaring, "By their actions our elected officials in Washington are sending us a rather strong message: We are not going to take any affirmative action to insure that the Mexican invasion across our southern border is brought to a halt. We must consider the possibility that these politicians want this invasion to continue because it serves their political needs. For the Democrats, this one is easy....to get those who were once illegal aliens, but by virtue of the amnesty program are illegal no more, to the polls to vote, presumably for Democrats. As for the Republicans? Well, there's always those heavy-duty contributors who benefit from the cheap labor offered by the invasion force."
He sounded just like Ingraham, who noted how "the business lobby [is] desperate to keep the flow of cheap labor coming into this country." Limbaugh denounced "country club Republicans." This line of criticism is not confirmed to radio. Back home on May 22, I was watching Fox News before heading to work. I was happy to hear "Fox & Friends" host E. D. Hill blame the Chamber of Commerce for lobbying on behalf of an "amnesty" in the Senate bill for employers who have hired illegal workers in violation of Federal law. They will not be subjected to fines or back taxes if their employees are eventually enrolled in a "guest worker" program (though the workers themselves will be).
In taking this stand, the Chamber of Commerce is siding with criminal firms against honest employers who have not hired illegals. When a business hires illegals, it is to gain a competitive "cheap labor" edge against other firms that obey the law and hire only Americans or legal immigrants. Most firms do not employ illegals. Even in those fields where illegals are thought to concentrate, such as construction, restaurants, agriculture, and cleaning services, they are still only a minority of the labor force. By taking the side of the illegal business sector, the Chamber is clearly favoring its growth at the expense of the rest of the economy.
And here is where the immigration issue comes into sync with another major economic issue that too many conservatives have been ignoring – the dangerous trends in international trade. In both cases, rogue corporations are pitting foreigners against Americans. Whether they bring foreign workers here, or send jobs to foreign workers overseas, these self-seeking firms are in alliance with foreign interests against American-based firms and their citizen-employees. Moving factories out of the United States is even more damaging to American society than hiring illegals, as the resulting enterprises are put completely out of reach.
The loss of millions of skilled industrial jobs, as well as managerial and technical positions, due to the de-industrialization of the American economy, sets the country up for the invasion by unskilled foreign migrants. As Chamber of Commerce President Thomas Donohue testified to the Senate Judiciary Subcommittee on Immigration, Border Security and Citizenship on May 26, 2005, "of the top 10 largest job growth occupations between 2002 and 2012, all but two require less than a bachelor’s degree. At the same time, six of the top 10 growth occupations require only short-term on-the-job training. Some of these top 10 occupations that only require short-term on the-job training include: retail salespersons, nursing aides, janitors and cleaners, waiters and waitresses, and combined food preparation and serving workers."
The skill level of the American labor force is being dumbed down by foreign outsourcing and trade deficits. In addition, we allow less educated illegal aliens to enter the country and compete for the low-level jobs that are all an economy hemmed in by overseas rivals can create. And when jobs skills are dumbed down, pay and living standards are also brought down. We are in fact importing poverty.
The invasion of foreign products has taken a larger toll on the U.S. economy and society than the invasion of illegal immigrants. Last year, the U.S. imported over $1.6 trillion worth of goods produced overseas. Foreign firms are responsible for much of this assault on American industry. But it is the political influence of nominally American firms that keeps Congress from taking action to secure the U.S. border against foreign economic rivals. The Chamber of Commerce represents these new "transnational" firms that no longer feel any allegiance to the United States and have joined forces with the alien onslaught by moving their operations overseas. These arrogant firms feel they are above the law and outside the bond of patriotism. Only strong government policy, based on the truly conservative (i.e., time-tested) doctrines of economic nationalism, can educate people like Donohue that being a "man without a country" is a ultimately a dead-end choice.
Thus the grassroots rebellion against political leaders who are in the pockets of the transnationals must prevail. If the United States is to survive as a powerful nation whose people are prosperous and whose economy can support their security and preeminent place in the world, then what happened in Herndon must happen in Washington. And with the expanded agenda needed to combat illegal foreign competition in all its forms
http://www.freerepublic.com/focus/f-news/1638515/posts
Homebuilders back sheriff in illegal hiring crackdown
By Chris Dumond
Staff Writer
HAMILTON — In spite of concerns raised by some homebuilders, local building contractors Thursday lauded Butler County Sheriff Richard K. Jones’ pursuit of those who hire illegal immigrants.
The contractors said they hope raids by the sheriff’s office will make the market more competitive for employers who play by the rules. At least one man said he’s already seeing better pay because of it.
“We support him 125 percent,” Benchmark Masonry Contractors owner Steve Hester said. “We who do things right, who have drug testing and check papers and have benefits, we can’t compete with those who aren’t.”
The Middletown businessman said larger contractors who bring illegal workers to the job site often hire them indirectly as subcontractors, thereby dodging their responsibility to ensure the workers are here legally, paying workers compensation and collecting taxes.
“We always check documents and Social Security cards,” Hester said. “We have had people in the past where we found out they were fakes and we got rid of them.”
The reaction comes in the wake of Wednesday’s raid of Carmona Construction in Fairfield Township by the Butler County Sheriff’s Office. Documents, a computer and computer data storage devices were taken from the search, according to sheriff’s officials.
“The search warrant resulted from information that was received from the incident that happened (May 18) on Wendy Meadows Drive,” said Sgt. Nick Fisher of the BCSO.
Authorities were called to that Wayne Township home building site on a report of a dispute between two construction crews. When deputies arrived, they found nearly 20 Hispanic workers suspected of being here illegally.
The suspects were loaded on a bus and taken to the sheriff’s office, where they were detained, questioned and released later in the night.
The sheriff’s office’s crackdown is good for his business and for taxpayers in general, said Hoelle Construction & Maintenance owner Darren Hoelle.
“If they’re here illegally, chances are they’re not paying income tax, which means that’s more coming out of my wallet,” Hoelle said. “I don’t use illegal help, so this may help me get work since my competitors who do may be having a harder time.”
At Valley Drywall Service in Liberty Township, Tom McMahon said the issue hits particularly close to home since his wife works in immigration law. While Valley Drywall doesn’t hire illegal immigrants, McMahon said the local crackdown could result in a labor shortage in the construction industry. On the other hand, though, he said the business has been held down for years by cheap immigrant labor.
“With all this attention it’s getting, I got my first raise in 20 years,” he said.
http://www.journal-news.com/news/content/news/stories/2006/05/25/HJN052606RAIDS_s.html?UrAuth=%60N\NUOaNYUbTTUWUXUWUZTYU]UWU_UaUZU%60UZUcTYWYWZV