the solution to illegal immigration is to get rid of the minimum wage

Discussion in 'Economics' started by empee, Apr 30, 2006.

  1. empee


    Obviously, the problem is that with government intervention we are falsely overpaying people and distorting the free market. In fact, businesses are seeking the free market by hiring illegals since they approach what is more "fair-value". If we removed the minimum wage, we would allow wages for Americans to fall and reach equilibrium with illegal immigrants, which would drive them out of the country since there wouldn't be incentive for them to come here since they would earn the wages they get in Mexico.

    By artificially creating a lower-band in terms of wages, businesses are incentivized to go for illegals because of the lack of enforcement/penalties versus the massive savings from using illegals.

    Plus, when we pay American's $3.50 an hour, we can TAX that income such as FICA/FUTA/etc. which will help pay for public services, whereas illegals pay nothing into the public coffers.

    In fact, why stop there? Perhaps we should penalize these people for earning so little with a "education tax" (ie a tax for not being educated) since they will be using a disproportionate amount of public services and its not fair that the rest of us have to pay! (Such as for their incarceration or their drug abuse issues).

    Ultimately, we will be paying close to Mexico wages to workers. Imagine how the markets would rally with extra strong earnings from companies that are suffering like XOM (ExxonMobil)! The sky would be bluer, cancer would be cured, and "we'd" all be happier.

    ... Actually I'm a liberal but I'm waiting to see this on FOX NEWS BUSINESS BLOCK.
  2. jrlvnv


    Why not walk in the shoes of a minimum wage worker for a month before you discuss a almost 50% decrease in there salary. You should be ashamed to post such garbage as a solution to the problem but then again you are a liberal so doesn't surprise me :cool:
  3. I believe the solution is to enfore the laws, consider a guest worker program, and get back to basics. Take care of our own and stop trying to fix everyone else's problems. This includes illegals and alot of other foreign issues which we have no business get involved in until we fix out own backyard.

    There are some jobs Americans probably will never do. When I was 16 I worked next to an illegal whom dug ditches while I mixed cement for a GC. Will I pick fruit, no, not unless I am starving. Jobs like these should be offered to guest workers. To see people whom I believe are illegal doing electrical contracting on home sites in Denver makes me sick. These were good paying jobs for guys that weren't white collar college types.

    I wonder would it would be like if we had no cheap illegal workers? Everything would cost more, but then you would also get paid more to compensate for inflation IMO. Maybe I am wrong, but I don't think the world is coming to an end if Hector goes to the rally and doesn't make pancakes. What do I know though:p
  4. This is a great idea. I'm glad you were willing to come out and say this. The minimum wage is distorting the supply demand equilibrium. Remember econ 101, price floors create an increase in quantity supplied and decrease in quatity demanded, hence you end up with a surplus of immigrants. The more people that learn and understand basic economic principles, the better off we all will be
  5. Great idea. Why don't you put yourself in their shoes before make a comments like this?

  6. Ok, you spent half an hour trying to be funny. I hear crickets chirpping. The reality is that these people are needed and they know it. So now what should be done. There really is not a great plan, this is a mess. But, i think the best approach is that of the presidents. Give them work permits, anyone who hires a non permitted worker gets in big trouble. We start taxing them then to pay for the services they are mooching on now. Anyone who wants to become a citizen thats been here for 5 years gets in the back of the line. I don't see anything else that makes sense, building a wall would be an expensive joke. The reality is that these people are doing all the things at the lower rungs of the economy that the gringo's won't do, or if they did it would be half ass. BTW, the myth that these people are cheap labor is BS, try offering a qualified amigo a lower wage than the next guy and see how fast he laughs. How Bush handles this will be his legacy, just as Lincoln's legacy was freeing the slaves. Being war presidents will be a foot note.

  7. The only reason that low wages bothers people is when they are paid in their own country.
    Does it bother you that the low wages paid in Asia are to produce goods that you that you buy in the good old US of A.

    Does it bother you that your engineering services, accounting services and other white collar jobs are being completed in India at a fraction of the wages paid in the good old USA.

    This problem with illegal immigrants is only the visual face of the new new global economy and offering limited solutions to it will not solve the greater problem.
  8. I think that post was supposed to be a sarcasm :D
  9. fhl


    Those who think productivity improvements through outsourcing is a "great problem", would have you think that they would be apeased if the borders were shut. But does experience show that when large groups of people are put out of work through productivity improvements within the US, instead of transferring them outside the country, that there is any less squawking? If we are going to progress, there must be "creative destruction".
  10. Agreed.
    The Great Wall of China ultimately failed.
    However, remember that "creative destruction" is a term that was coined to be applied to other people, not to the authors. A bit like "collateral damage" I suppose
    #10     May 1, 2006