Illegal workers: Boon for U.S. Economy

CNN/Money ^ | May 1, 2006 | Chris Isidore

[blueberry12]

The U.S. has benefited from illegal immigrants, most economists say, though some low-skilled workers have been hurt.

NEW YORK (CNNMoney.com) - In the heated debate over the impact of illegal immigration on the U.S. economy, Andrew Sum is one of those focusing on the negative.

The economist - the director of labor market studies at Northeastern University in Boston - argues that the large supply of immigrants has displaced low-skilled U.S.-born workers, particularly the young and the poor, from jobs.

"About 85.5 of every 100 new workers are new immigrants in this decade," he said. "At no time in the last 60 years have we come close to this. They're really displacing young workers at a very high rate."

But even Sum would concede that the U.S. economy is larger, and growing faster, due to the supply of illegal immigrants, and that most Americans with higher job skills are better off for their presence.

"Without the immigrants, we would have a decline in labor force of 3 to 4 percent," he said. "We couldn't have grown nearly as much as we did in the '90s if we didn't have immigrants. And in the last few years our growth would have been slower. The only thing I've argued is that we've ignored that illegal immigration has put a lot of young adults into economic jeopardy."

Sum's views point out the dichotomy that many economists see when looking at the impact of immigration on the economy.

Few economists will argue with the concept that the economy is stronger for the presence of the low-cost labor force.

[vikzilla]

.....bottomline he says is he cannot get any Americans with the work ethic to do the work

BS, not at the wages he wants to pay. He prefers to let me supplement his costs. Tell him to go "F" himself for me.

[papertyger]

Then, we discussed the issues.....bottomline he says is he cannot get any Americans with the work ethic to do the work (landscape, irrigation install).

Do you really expect him to admit he's a cheat, and hiring them because of the latitude he gains by not hiring Americans.

Let me set you straight, pal. My brother IS a landscape contractor, and he admited around the family he hires illegals so he can treat them differently.

I haven't spoken to him since that day.

[Myrddin]

If someone doesn't pay property taxes, he will lose his house in no time.

Property tax is assessed based on the property value. That says nothing about how the property is used. Jamming 20+ illegals into a 2 bedroom house is common. You can bet the rent covers the taxes and a lot more. The tax assessed against a property thus occupied is not proportional to the services consumed by that property.

[blueberry12]

The illegals pay for law enforcement. Where do you think these illegals live? They pay rent, and house owners pay property taxes. And where does that property tax go?

Many folks here live in a dream world. All you think is that illegals are parasites. They are not!

Same goes for most people who evade paying income taxes.

Yes, but remember that illegal immigrants are not allowed to pay taxes. That's why they don't pay, because they are not legal.

Most people enter the US illegally because the legal process is extremely slow and costly.

[VOATNOW1]

So this is why California has such a huge budget surplus? Oh, thats right, California has a huge budget deficit. My mistake. I guess the author of this article needs to look up the definition of "Boon". The fact is that hospitals, schools, etc, would not facing budget problems if this article had an ounce of truth in it.

[blueberry12]

Read #29.

[goodnesswins]

If people from Flint or Detroit wanted jobs they would be here.....but....bet they just don't want to "move" or "travel" or whatever......and then they'd have to room with others also. Sorry, your line doesn't work.

[fr_freak]

Then, we discussed the issues.....bottomline he says is he cannot get any Americans with the work ethic to do the work (landscape, irrigation install). I know he is probably right, as my son, who is a subcontractor in construction (mostly siding) has had the same problem, and said the same thing.

Maybe we have a chicken and the egg situation here. If you, as an American, found yourself in dire need of a job and considered applying for one in either agribusiness, landscaping, or construction, what would be some of the first deterrents that would occur to you? I would think that the first consideration would be that you'd know that the wage would be incredibly low (and, in some cases, below legal minimum) and that, therefore, your labor would be better inveted elsewhere.

So, the question is: does a shortage of Americans willing to do the work lead to illegals and depressed wages, or do the influx of illegals and the resulting depressed wages lead to a shortage of willing Americans?

[Myrddin]

My wife went to Walmart on Sunday to do some shopping. It was wall to wall Mexicans. They were doing their shopping on Sunday so they could "boycott" on Monday. I suspect that when the books are averaged over Sunday and Monday, it will look like any other day for average sales.

[goodnesswins]

"your first consideration would be that you'd know that the wage would be incredibly low (and, in some cases, below legal minimum) and that, therefore, your labor would be better inveted elsewhere."

Try again. They are not paying BELOW legal minimums or Incredibly low.....

[LS]

I liked very much the economic results of the Reagan years, even with Congress. Conspiracy theories about what "big business" wants are beyond silly.

[taxed2death]

"WORKERS NEVER HURT THE ECONOMY. ALL WORKERS HELP THE ECONOMY. THE MORE WORKERS THERE ARE THE BETTER IT IS. And it doesn't matter where the workers come from and what passports they have."

Fantastic.....we have a LEGAL work Visa program.

http://www.unitedstatesvisas.gov/

So lets say Bob's tree-cutting service is a legit business and has been playing by the rules for 10 years....

And Fred's tree cutting business up the street hires a bunch of illegals.
You think because Fred pays no FICA / SS taxes, or insurance it is OK to under cut Bob and put him out of business?

I've seen this "anecdotal" story play itself out dozens of times here in CT with businesses of various types.

Your bullshit "capitalist" argument is ridicules!

Why should you pit a legal legit business owner against a scumbag tax cheat?
What happened to competing in a fair business environment?

You're an illegal apologist and just as bad as the scumbags who hire them. What do you have against legal legit business owners? Why aren't you marching for THIER "rights"?

Do you honestly think that if we wave a magic wand over these illegals and make them legal in one fell swoop that the scumbag employees WON'T immediately fire their newfound legal workers and save about 30% - 50% on labor / taxes and hire MORE illegals?



Y

[papertyger]

WORKERS NEVER HURT THE ECONOMY.

They do when they create an artificial equilibrium by displacing those fully subject to the market forces.

[ex-Texan]

I agree with you 100%. Congress will sell out America and our naturalized citizens who chose to immigrate legally. Our representatives are acting like paid-for-shills that have accepted cash bribes. Which is what most of them are anyway. Only one solution remains: Vote all the corrupt bastards out of office!

View a photo slide show of obnoxious border jumper protests by clicking here

[blueberry12]

Property tax is assessed based on the property value. That says nothing about how the property is used. Jamming 20+ illegals into a 2 bedroom house is common. You can bet the rent covers the taxes and a lot more. The tax assessed against a property thus occupied is not proportional to the services consumed by that property.

Didn't you know that property taxes are not 100% JUST ?

For example, if one has 10 kids and lives in a cheap house, he pays less property taxes than a small family with one child in a big, expensive house. That's not fair, because the one with more children should pay more to support the school system!

Why don't you complain about that?

[goodnesswins]

AND, FURTHERMORE, part of the problem are the Fed and State CHILD LABOR rules which means kids don't pick crops anymore.....like I DID, for something like 75 cents a flat (of strawberries) and $2.00 a bushel of Beans.....from about age 10-16

[OkieDoke]

"Most people enter the US illegally because the legal process is extemely slow and costly."

Using that logic, we should go hold up banks because
earning a living honestly is extremely slow and costly.

[blueberry12]

Read #50.

[Idisarthur]

We do attack the welfare system and socialism... The Dems want these people in this country to call them their own, to perpetuate the ordeal.

[talleyman]

I wonder if the author will feel the same way when he's replaced by Pedro Sanchez?
(Lord knows, it takes no skill to be a "journalist.")