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Wednesday, March 22, 2006

Robert Samuelson is making sense:

In a surprising column, We Don't Need 'Guest Workers', Samuelson makes the economic case in support of ordinary working Americans (as opposed to his usual Social Darwinist mode). Excerpts:
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.

It's a myth that the U.S. economy "needs" more poor immigrants. ... They're drawn here by wage differences, not labor "shortages." In 2004, the median hourly wage in Mexico was $1.86, compared with $9 for Mexicans working in the United States ...

... what would happen if new illegal immigration stopped and wasn't replaced by guest workers? Well, some employers would raise wages to attract U.S. workers. Facing greater labor costs, some industries would ... find ways to minimize those costs. As to the rest, what's wrong with higher wages for the poorest workers? From 1994 to 2004, the wages of high school dropouts rose only 2.3 percent (after inflation) compared with 11.9 percent for college graduates.

Business organizations understandably support guest worker programs. They like cheap labor and ignore the social consequences. What's more perplexing is why liberals, staunch opponents of poverty and inequality, support a program that worsens poverty and inequality. Poor immigrant workers hurt the wages of unskilled Americans. The only question is how much. Studies suggest a range "from negligible to an earnings reduction of almost 10 percent," according to the CBO.


1 comments

The best situation for the powers that be is to get ordinary Americans concerned about illegal immigration to vote Republican, thus ensuring that big business gets all the low-cost, illegal labor it needs. Self-perpetuating cycle. AND every few years you can declare an Amnesty in your quest for Latino Republicans!

By Blogger brainhell, at 3/23/2006 7:44 AM  

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