How is Illegal Immigration Good for the Economy?

If you turned on any news channel right after President Obama announced his amnesty by executive order, you heard the same argument over and over again. The narrative on the left and on some of the right was, “More immigration will cause an economic boom in the economy and create more jobs.” Some even went so far as to claim that allowing more immigration would be the “magic pill” for 5% + GDP growth.

Now, I am no economist, nor am I an expert on immigration. However, I do have common sense. So let me see if I can provide a common sense argument as to why more immigration (at the scale they are proposing), would in fact hurt the economy, not help it.

1) Most illegal immigrants from Latin America and around the world are low skilled, low-educated workers. Out of 11 million illegal immigrants, how many are actually working in Universities, Corporations, etc? This means that the majority would be working in the service industry. That market is already saturated.

2) We already know that 70% of jobs created in the last six years have gone to immigrants and illegal immigrants. Very few have gone to U.S Citizens, so there is no reason to believe that would change.

3) We know that it costs states hundreds of millions of dollars to provide illegal immigrants with public education, medical treatment, and many other services. It is a huge drain on the states. Is what we collect in revenue from illegal immigrants and immigrants enough to cover those expenses?

4) There is not enough demand for workers with their skill set. By flooding the market with supply (workers), you destroy the demand, thus leading to a decrease in wages, standard of living, etc.

5) Finally, economics is based on scarcity of resources. These resources are used in alternative ways in order to accommodate the demand from the local population and create a market. [Note: For example, silicon was used in a variety of ways before the computer era. However, it boomed during the 80’s and created the silicon chip, which provided an alternate use for silicon].

By allowing an unlimited influx of illegal immigrants, the pool of people wanting resources is artificially increased while resources dwindle or alternatives of those resources drop. It is an artificial growth and almost impossible for any country to properly assimilate without allowing proper assimilation.

The law of supply and demand cannot be circumvented, no matter how many economists or politicians say otherwise.  Resources are finite and in order for a free-market economy to thrive, alternative uses must be created for the same resources. Mass immigration threatens this on a basic level.

Now, if by booming the economy they mean it will provide cheap labor for big business, then yes, I agree.

Thoughts?

YHC

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