America end up REDUCING minimum wages as becomes harder to hire illegal immigrants?

Discussion in 'Economics' started by crgarcia, Jul 31, 2010.

  1. Most (if not all) people hire illegal immigrants to pay wages below the minimum wage.

    Judge Susan Bolton didn't block parts of the SB1070 law that punish hiring illegal immigrants.

    SB1070 is only the beginning, other states want to pass similar laws, they are waiting to see how AZ does.

    So, if hiring illegal immigrants becomes harder (this is unavoidable), will America end up REDUCING minimum wages, to compensate?
  2. interesting idea but I doubt it.
  3. MattF


    nope. Just don't expect many to be hired, not give any type of benefits, or have the wages raised anytime this decade despite higher taxes and COL standards.

    Soon 2 jobs won't be enough. You'll need 3/80-90 hours a week plus at minimum wage to barely stay afloat (or above the poverty line).
  4. No cost will go up. This may be the real cause of inflation because currently there is none.
  5. Some people working on low-wage jobs are now living in cars or vans - if they are not fortunate enough to live with a providing spouse or inherited a home that is paid for! Some Kids stay with mom & dad for years while working these jobs.
  6. Kids living with parents is a great trend. Taxpayers don't have to pay for subsidized geriatric homecare and taxpayer doesn't have to pay for govt. shelters for homeless kids. The Asian cultures live many generations under one roof and therefore have the highest savings rates. The Kids take care of the parents, the parents take care of the babies when the kids are at work and all share 1 car.

  7. Let's look at supply and demand. If the number of workers in the workforce is reduced because the supply is constrained as the illegal immigrants can no longer be hired then the price paid for workers (wages) will go up even if overall market demand remains the same.

  8. Yeah, I thaught the same thing.

    Isn't it already underway?

    I doubt it, this seems like a long lasting deflation.
    Maybe companies will fire people to hire someone paid only half what you get (or you can be rehired for half your salary)?

    It is also already underway.

    Those who lived with the illussion they could afford an (independent) home, are getting struck by the reality of forecloses.

    What if actually worker supply keeps going up (due to continued worker firings)?
  9. I don't disagree with anything anyone has said, however the minimum wage is in and of itself a waste as a tool of economics, and on top of it, I believe it contributes to the problem of illegal immigration.

    I don't mean to make it sound as though this is a magic bullet. There is no one magic bullet as far as illegal immigration, however I firmly believe this is a good tool as part of an overall comprehensive policy to battle illegal immigration.