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Immigration Drags Down Wages By Chris Knight
In the sacred free market, the god of the libertarians, where people are treated as just another resource, the iron laws of supply and demand mean that mass immigration drags down wages, and no nonsense about migrants creating jobs eliminates this, as any such jobs get soaked up by the flood of mass immigration. Just ask Trump:
“President Donald Trump touted the wage gains for Americans in the lowest income brackets, adding that that the open borders policies of the Democratic Party threaten those gains. “Since the election, real wages have gone up 3.2 percent for the median American worker,” Trump said in a speech Tuesday to the Economic Club of New York. “But for the bottom income group, real wages are soaring. A number that has never happened before. Nine percent.” Wage gains for those near the bottom of America’s economic ladder have been particularly strong this year. The lowest-paid Americans saw weekly earnings rise by more than 5 percent in the second quarter from a year earlier, according to a quarterly survey of households produced by the Labor Department. Workers with less than a high-school diploma saw their wages grow nearly 6 percent. “That may mean you make a couple of bucks less in your companies,” Trump said. “And you know what? That’s okay. This is a great thing for our country. When you talk about equality. This is a great thing for our country.”
The so-called “poverty gap”–which measures the heightened poverty rate among blacks and Hispanics compared to poverty overall–shrank to its lowest level on record last year. The racial gap in unemployment has also contracted as unemployment rates hit record lows this year. Black unemployment hit its lowest level on record in November. Trump gave credit to the tight labor market for the improvement in wages and employment. But opening the countries borders to new workers from abroad would threaten those gains, he added. “Our tight labor market is helping them the most,” Trump said. “Yet the Democrats in Washington want to erase these gains through an extreme policy of open borders, flooding the labor market and driving down incomes for the poorest Americans. And driving crime through the roof.” Economic studies have shown that when the supply of workers goes up, the price that companies have to pay to hire workers goes down. “Wage trends over the past half-century suggest that a 10 percent increase in the number of workers with a particular set of skills probably lowers the wage of that group by at least 3 percent,” Harvard economist George Borjas has written. “But because a disproportionate percentage of immigrants have few skills, it is low-skilled American workers, including many blacks and Hispanics, who have suffered most from this wage dip.”’
The same argument applies to legal immigration as well, for it makes no economic difference how these people got here, only that they are here. And, there is evidence that illegal numbers are three times higher than the official statistics, indicating once more, that we cannot trust the officials numbers:
“We apply standard demographic principles of inflows and outflows to estimate the number of undocumented immigrants in the United States, using the best available data, including some that have only recently become available. Our analysis covers the years 1990 to 2016. We develop an estimate of the number of undocumented immigrants based on parameter values that tend to underestimate undocumented immigrant inflows and overstate outflows; we also show the probability distribution for the number of undocumented immigrants based on simulating our model over parameter value ranges. Our conservative estimate is 16.7 million for 2016, nearly fifty percent higher than the most prominent current estimate of 11.3 million, which is based on survey data and thus different sources and methods. The mean estimate based on our simulation analysis is 22.1 million, essentially double the current widely accepted estimate. Our model predicts a similar trajectory of growth in the number of undocumented immigrants over the years of our analysis, but at a higher level. While our analysis delivers different results, we note that it is based on many assumptions. The most critical of these concern border apprehension rates and voluntary emigration rates of undocumented immigrants in the U.S. These rates are uncertain, especially in the 1990’s and early 2000’s, which is when—both based on our modeling and the very different survey data approach—the number of undocumented immigrants increases most significantly. Our results, while based on a number of assumptions and uncertainties, could help frame debates about policies whose consequences depend on the number of undocumented immigrants in the United States.”
Thus, there could be up to 29.5 million illegal immigrants in the US, more than the entire population of Australia, a shocking state of affairs, showing that the evil corporates and agri-business, exploiting cheap illegal labour, are a clear and present danger to national security, that have been left too long unaddressed. Their dream run has got to end.