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To: Brilliant
Say what you want about immigration...but Bush has definitely done what it takes to make the economy go.

B, I generally like your posts, but once I again I feel compelled to address the question of illegal immigration & the economy.

GDP growth is a function of productivity growth and real population growth. If we let in 10m workers (legal or otherwise), and all are employed, then yes, the economy will grow by a comensurate amount.

That's why proponents of illegal immigration say it's 'good' for the economy. To a certain extent that is true as is evidenced by lower inflation (primary a function of wage competition), GDP growth & unemployment (illegals create demand for goods & services that effect the overall economy).

However, and this is BIG however, these are all nominal P&L accounts; that is, they only measure the effect today, not the accrued liabilities that are being pushed into the future. It's the balance sheet accruals that are the 'under the waterline' costs. These are of course what are being incurred by the various levels of government.

So, in a nutshell, businesses profit from the short-term nominal effect, while governments (taxpayers) suffer from the long term effects. One more point - since there's more demand for gov't provided services by low-skill workers, government also grows. This, of course, is a boon to Dem politicians and union leaders.

Combine the short-term advantages and long-term costs, and who benefits? That's who supports illegal immigration.

27 posted on 05/25/2006 6:23:41 AM PDT by lemura
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To: lemura

There are a lot of factors that have fueled this economy, immigration being one. But then there is also the tax cut and the war.

And there is also the fact that Bush has so far resisted the Dem's demands for oil industry regulation and protectionism, and has been slow to increase the minimum wage and socialize the health care industry.


33 posted on 05/25/2006 6:32:11 AM PDT by Brilliant
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