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Importing Poverty: The Cheap Labor Trap
AmericanEconomicAlert.org ^ | September 05, 2005 | William R. Hawkins

Posted on 03/28/2006 12:45:30 AM PST by Exton1

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1 posted on 03/28/2006 12:45:33 AM PST by Exton1
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To: Exton1

Who is this fool? Who buys his bread?


2 posted on 03/28/2006 12:51:47 AM PST by bybybill (RATS WIN, WE LOSE)
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To: Exton1
If one looks around the world at those foreign societies with the worst living standards, their problem is clearly not a lack of cheap labor. Indeed, their problem is that cheap labor is all they have. What they need is capital investment in advanced methods.

What they need is to not scare capital away by confiscatory govt. policies. If one looks around the world at those foreign societies with the worst living standards, their problem is clearly not a lack of cheap labor. Indeed, their problem is a corrupt and unrestrained govt./dictatorship.

3 posted on 03/28/2006 2:08:11 AM PST by staytrue
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To: Exton1
The unregulated availability of cheap labor leads away from innovation. Technological progress is promoted by the pursuit of "labor saving" methods in markets where labor supplies are tight and expensive.

The worker is damned if you do and damned if you don't. With cheap labor, you have a lot of low paying jobs, with expensive labor, you have a few higher paying jobs and a lot of machines.

4 posted on 03/28/2006 2:10:01 AM PST by staytrue
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To: bybybill
Fool? he has a point about cheap labor and the criminal illegals. Our SOUTHERN BORDER is now called A NATIONAL SECURITY ISSUE SECOND TO THE WAR ON TERROR

Just heard Senator Bill Frist say it on NBC.

5 posted on 03/28/2006 3:38:58 AM PST by stopem (Call any co you deal with and insist they not let any illegal work on or near your property, we did!)
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To: staytrue
"Economic progress needs to be U.S. policy. But to keep on that path, the flood of unskilled and impoverished aliens needs to be halted before they further drag down American living standards. National legislation, and its enforcement, must overrule the short-sighted inclinations of business. Maximizing output per worker, rather than the number of workers; and building up the skills and incomes of workers, not undermining them with the poor and the uneducated, is the right way to advance American civilization.

Amen to that!

6 posted on 03/28/2006 3:42:01 AM PST by stopem (Call any co you deal with and insist they not let any illegal work on or near your property, we did!)
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To: Exton1

Are American's ready to kill for their quality of life or accept third world living standards? Those are the choices. The hundreds of thousands who went to the streets aren't going back peacefully.


7 posted on 03/28/2006 4:10:42 AM PST by milemark (Proud to be an infidel.)
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To: Exton1

"One of the factors "encouraging business to hire" is the availability of cheap labor, much of it from illegal immigrants."

Cheap labor certainly ain't cheap to us taxpayers!!!!!


8 posted on 03/28/2006 4:16:05 AM PST by taxed2death (A few billion here, a few trillion there...we're all friends right?)
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To: Exton1

What makes 'cheap labor' even more taxing on this country is the fact they send most of their earnings back to their homelands.


9 posted on 03/28/2006 4:49:38 AM PST by wolfcreek
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To: Exton1

This is how illegal immigration costs the U.S.

1. The illegal immigrants have robbed from our taxing system.

2. The illegal immigrants have robbed from our Social Security System.

3. The illegal immigrants have robbed from our Health Care System.

4. The illigal immigrants have robbed from our School Systems.


10 posted on 03/28/2006 5:10:51 AM PST by i_dont_chat (I defend the right to offend!)
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To: stopem
the flood of unskilled and impoverished aliens needs to be halted before they further drag down American living standards

Ah, hold on a second. There are winners and losers to this. The consumer gets cheaper landscaping, cheaper vegetables, and can afford a better house because the labor to build it is cheaper. That translates to an increase in living standards for many.

How many consumer goods are people able to afford now because they are cheaply made in China? Compare to 50 years ago when they weren't?

As far as national living standards being dragged down by illegals, show me some hard data. After Luxumbourg, the US citizen makes the highest salary in the world. I don't feel that my living standards have decreased in the least because of all the illegals here.

Lest the emotional interpret this as advocating illegal immigration - I'M NOT.

11 posted on 03/28/2006 6:19:16 AM PST by A Ruckus of Dogs
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To: A Ruckus of Dogs

It's a myth that the U.S. economy "needs" more poor immigrants. The illegal immigrants already here represent only about 4.9 percent of the labor force, the Pew Hispanic Center reports. In no major occupation are they a majority. They're 36 percent of insulation workers, 28 percent of drywall installers and 20 percent of cooks. They're drawn here by wage differences, not labor "shortages." Guest workers would mainly legalize today's vast inflows of illegal immigrants, with the same consequence: We'd be importing poverty. This isn't because these immigrants aren't hardworking; many are. Nor is it because they don't assimilate; many do. But they generally don't go home, assimilation is slow and the ranks of the poor are constantly replenished. Since 1980 the number of Hispanics with incomes below the government's poverty line (about $19,300 in 2004 for a family of four) has risen 162 percent. Over the same period, the number of non-Hispanic whites in poverty rose 3 percent and the number of blacks, 9.5 percent. What we have now -- and would with guest workers -- is a conscious policy of creating poverty in the United States while relieving it in Mexico. By and large, this is a bad bargain for the United States. It stresses local schools, hospitals and housing; it feeds social tensions (witness the Minutemen). To be sure, some Americans get cheap housecleaning or landscaping services. But if more mowed their own lawns or did their own laundry, it wouldn't be a tragedy.

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/21/AR2006032101146_pf.html


12 posted on 03/28/2006 6:42:15 AM PST by anglian
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To: A Ruckus of Dogs

Data from one state. Californi http://www.nctimes.com/articles/2004/12/06/news/top_stories/19_56_5812_5_04.prt


13 posted on 03/28/2006 6:57:54 AM PST by anglian
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To: Exton1

That is the point. Import the government program dependent.


ANY paying of dollars is a total joke.

People will come to the USA knowing they can raise the PENUTS to pay a joke fine.

(I have seen it myself with legal consultations. The money is treated as a mere minor point. You want it you will get in.)

This law actually makes the 10 year wait now FIVE.


14 posted on 03/28/2006 7:00:10 AM PST by longtermmemmory (VOTE!)
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To: anglian

Thanx for the info. I do agree that illegals are a very real stress in California and border states, where they comprise a good size minority. How they affect the overall economy of the US is probably much less. We are a powerful economy of 300 million people, and I haven't really seen anything that says the illegals are whacking it significantly.


15 posted on 03/28/2006 7:03:47 AM PST by A Ruckus of Dogs
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To: Willie Green; Wolfie; ex-snook; Jhoffa_; FITZ; arete; FreedomPoster; Red Jones; Pyro7480; ...
To many businessmen, cutting labor costs by reducing wage levels seems expedient. And in an economy where the laws against illegal immigration have collapsed, there is even competitive pressure on firms to match what rivals may be doing, even if owners and managers may personally find the practice distasteful. But the proper way to cut labor costs per unit of output is to increase productivity, a process that boosts worker incomes and company profits at the same time, and that is the only way to elevate the living standards of an entire society. The unregulated availability of cheap labor leads away from innovation. Technological progress is promoted by the pursuit of "labor saving" methods in markets where labor supplies are tight and expensive.

Cheap labor bump

16 posted on 03/28/2006 7:07:54 AM PST by A. Pole (Working three jobs - uniquely American, isn't it? I mean, that is fantastic, oooh yeah, yeah, hehe.)
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To: Exton1
This article raises some very good points, but I think the author has missed one very big one.

I strongly suspect that the primary impetus for our nation's open borders policy is not the desire for cheap labor, but for new consumers. The Mexican who enters this country illegally is not "valued" by our government and corporate interests in this country because he works for low pay, but because he may find himself in an aisle at Wal-Mart next month or in a Ford dealership five years from now.

17 posted on 03/28/2006 7:12:17 AM PST by Alberta's Child
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To: A Ruckus of Dogs
After Luxumbourg, the US citizen makes the highest salary in the world.

Exactly why the internationalists, transnational corporations and global socialists and communists are attacking this country.
18 posted on 03/28/2006 7:27:14 AM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: Alberta's Child
I strongly suspect that the primary impetus for our nation's open borders policy is not the desire for cheap labor, but for new consumers.

But if the low wages mean less consumption, not more. Otherwise cheap labor countries in Latin American would be better markets than USA.

19 posted on 03/28/2006 7:32:30 AM PST by A. Pole (Working three jobs - uniquely American, isn't it? I mean, that is fantastic, oooh yeah, yeah, hehe.)
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To: Exton1
From the article:
Open borders and a new "guest workers" program to legalize millions of illegal aliens is what groups like the Chamber of Commerce desire, in effect creating a proletariat.

It's America's future. Better get used to it.

Having said that, I agree with the article completely. We are in a race to the bottom, sold out by politicians on both sides of the aisle.

Our schools don't teach.
Our borders are all-but open and essentially non-existent.
Our manufacturing base is vanishing.
And, due to changes in legal immigration policy, our nation is losing the cultural cohesiveness that "makes a nation".

Wish I could be more optimistic, but - nearing retirement and having seen too much - I'm not.

- John

20 posted on 03/28/2006 7:49:15 AM PST by Fishrrman
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