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To: rhombus
Profits is good and helps the economy

How do you feel about illegal drug dealers? They make plenty of profits.

Personally, I am a huge fan of legally earned profits. It is profits from illegal activity like hiring illegal aliens that I object to.

But my point in my previous post was that the idea that cheap illegal labor results in cheaper prices for consumers is an economic fallacy. The savings do not get passed on. Prices are based on supply and demand. If you look at a supply and demand graph you will find quantity on one axis and price on the other. You will not find the cost of labor anywhere on the graph because it has nothing to do with the price. The producers pocket the labor cost savings as illegal profits.

517 posted on 11/29/2005 12:07:46 PM PST by jackbenimble (Import the third world, become the third world)
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To: jackbenimble
How do you feel about illegal drug dealers? They make plenty of profits.

Not the point, but I know you know that.

But my point in my previous post was that the idea that cheap illegal labor results in cheaper prices for consumers is an economic fallacy. The savings do not get passed on. Prices are based on supply and demand. If you look at a supply and demand graph you will find quantity on one axis and price on the other. You will not find the cost of labor anywhere on the graph because it has nothing to do with the price. The producers pocket the labor cost savings as illegal profits.

I don't dispute it but my experience is that COSTS do get passed on and WILL get passed on.

522 posted on 11/29/2005 12:13:18 PM PST by rhombus
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