(What’s Left of) Our Economy: You Bet that Mass Immigration Makes America Less Productive

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amnesty, Bureau of Labor Statistics, construction, demand, Donald Trump, economics, Forward.us, hotels, illegal aliens, immigrants, Immigration, labor productivity, productivity, restaurants, supply, total factor productivity, wages, {What's Left of) Our Economy

An archetypical Washington, D.C. swamp denizen thought he caught me with my accuracy pants down the other day. Last Sunday’s post restated a point I’ve made repeatedly – that when countries let in too many immigrants, their economies tend to suffer lasting damage because businesses lose their incentives to improve their productivity – the best recipe for raising living standards on a sustainable, and not bubble-ized basis, as well as for boosting employment on net by fostering more business for most existing industries and enabling the creation of entirely new industries.

The reason mass immigration kneecaps productivity growth? Employers never need to respond to rising wages caused by labor shortages by buying labor-saving machinery and technology or otherwise boost their efficiency. Instead, they continue the much easier and cheaper approach of hiring workers whose pay remains meager because immigrants keep swelling the workforce.

It’s a point, as I’ve noted, strongly supported by economic theory and, more important, by evidence. But Todd Schulte, who heads a Washington, D.C.-based lobby group called Forward.us, wasn’t buying it. According to Schulte, whose organization was founded by tech companies like Facebook with strong vested interests in keeping U.S. wages low, “the decade of actual [U.S.] productivity increases came directly after the 1986 legalization AND 1990 legal immigration expansion!”

He continued on Twitter, “giving people legal status and… expanding legal immigration absolutely has not harmed productivity in the last few decades in the US.”

So I decided to dive deeper into the official U.S. data, and what I found was that although there are bigger gaps in the productivity numbers than I’d like to see, there’s (1) no evidence that high immigration levels following the 1986 amnesty granted by Washington to illegal immigrants and the resulting immigration increase mentioned by Schulte improved the national productivity picture over the pre-amnesty period; and (2) there’s lots of evidence that subsequent strong inflows of illegal immigrants (who Schulte and his bosses would like to see amnestied) have dragged big-time on productivity growth.

First, let’s examine the productivity of the pre-1986 amnesty decades, which provides the crucial context that Schulte’s claim overlooks.

According to U.S. Bureau of Labor Statistics figures, during the 1950s, a very low immigration decade (as shown by the chart below), labor productivity grew by an average of 2.63 percent annually. Significantly, this timespan includes two recessions, when productivity normally falls or grows unusually slowly.

Figure 1. Size and Share of the Foreign-Born Population in the United States, 1850-2019

During the 1960s expansion (i.e., a period with no recessions), when immigration levels were also low, the rate of labor productivity growth sped up to an annual average of 3.26 percent.

The 1970s were another low immigration decade, and average labor productivity growth sank to 1.87 percent. But as I and many other readers are old enough to remember, the 1970s were a terrible economic decade, plagued overall by stagflation. So it’s tough to connect its poor productivity performance with its immigration levels.

Now we come to the 1980s. Its expansion (and as known by RealityChek regulars, comparing economic performance during like periods in a business cycle produces the most valid results), lasted from December, 1982 to July, 1990, and saw average annual labor productivity growth bounce back to 2.24 percent.

As noted by Schulte, immigration policy changed dramatically in 1986, and as the above chart makes clear, the actual immigant population took off.

But did labor productivity growth take off, too? As that used car commercial would put it, “Not exactly.” From the expansion’s start in the first quarter of 1982 to the fourth quarter of 1986 (the amnesty bill became law in November), labor productivity growth totalled 10.96 percent. But from the first quarter of 1987 to the third quarter of 1990 (the expansion’s end), the total labor productivity increase had slowed – to 5.76 percent.

The 1980s are important for two other reasons as well. Nineteen eighty-seven is when the Bureau of Labor Statistics began collecting labor productivity data for many U.S. industries, and when it began tracking productivity according to a broader measure – total factor productivity, which tries to measure efficiency gains resulting from a wide range of inputs other than hours put in by workers.

There’s no labor productivity data kept for construction (an illegal immigrant-heavy sector whose poor productivity performance is admitted by the sector itself). But these figures do exist for another broad sector heavily reliant on illegals: accommodation and food services. And from 1987 to 1990 (only annual results are available), labor productivity in these businesses increased by a total of 3.45 percent – worse than the increase for the economy as a whole.

On the total factor productivity front, between 1987 and 1990 (again, quarterly numbers aren’t available), it rose by 1.23 percent for the entire economy, for the construction industry it fell by 1.37 percent, for the accommodation sector, it fell by 2.30 percent, and for food and drinking places, it increased by 2.26 percent. So only limited evidence here that amnesty and a bigger immigrant labor pool did much for U.S. productivity.

As Schulte pointed out, the 1990s, dominated by a long expansion, were a good productivity decade for the United States, with labor productivity reaching 2.58 percent average annual growth and total factor productivity rising by 10.87 percent overall. But when it comes to labor productivity, the nineties still fell short of the 1950s (even with its two recessions) and by a wider margin of the 1960s.

But did robust immigration help? Certainly not in terms of labor productivity. In accommodation and food services, it advanced by just 0.84 percent per year on average.

Nor as measured by total factor productivity. For construction, it actually dropped overall by 4.94 percent. And although it climbed in two other big illegal immigrant-using industries, the growth was slower than for the economy as a whole (7.17 percent for accommodation and 5.17 percent for restaurants and bars).

Following an eight month recession, the economy engineered another recovery at the end of 2001 that lasted until the end of 2007. This period was marked by such high legal and illegal immigration levels that the latter felt confident enough to stage large protests (which included their supporters in the legal immigrant and immigration activist communities) demanding a series of new rights and a reduction in U.S. immigration deportation and other control policies.

Average annual labor productivity during this expansion grew somewhat faster than during its 1990s predecessor – 2.69 percent. But annual average labor productivity growth for the accommodation and food services sectors slowed to 1.19 percent, overall total factor productivity growth fell to 1.19 percent, and average annual total factor productivity changes in accommodations, restaurants, and construcion dropped as well – to 6.36 percent, 2.67 percent, and -9.08 percent, respectively.

Needless to say, productivity grows or shrinks for many different reasons. But nothing in the data show that immigration has bolstered either form of productivity, especially when.pre- and post-amnesty results are compared. In fact, since the 1990s, the greater the total immigrant population, the more both kinds of productivity growth deteriorated for industries relying heavily on illegals. And all the available figures make clear that these sectors have been serious productivity laggards to begin with.

And don’t forget the abundant indirect evidence linking productivity trends to automation – specifically, all the examples I’ve cited in last Sunday’s post and elsewhere of illegal immigrant-reliant industries automating operations ever faster — and precisely to offset the pace-setting wage increases enjoyed by the lowest income workers at least partly because former President Trump’s restrictive policies curbed immigration inflows so effectively. 

In other words, in the real world, changes in supply and demand profoundly affect prices and productivity levels – whatever hokum on the subject is concocted by special interest mouthpieces who work the Swamp World like Todd Schulte.

Glad I Didn’t Say That! The Washington Post’s Open Borders Deniers

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Alejandro Mayorkas, Biden administration, Border Patrol, border security, Department of Homeland Security, FoxNews.com, Glad I Didn't Say That!, Haitians, illegal aliens, Immigration, migrants, Open Borders, Republicans, The Washington Post, United Press International

“The numbers belie the Republican claim that Haitians have been

admitted into the country wholesale.”

– The Washington Post, October 13, 2021

“Secretary of Homeland Security Alejandro Mayorkas said Sunday

that as many as 12,000 Haitian migrants who made their way to the

U.S.-Mexico border have been released into the United States.”

– United Press International, September 26, 2021

Number of migrants overall released into the United States since

August 6, according to leaked Border Patrol documents:  c. 72,000

– FoxNews.com, October 13, 2021

 

(Sources: “How the Biden administration can help Haitian migrants without sending the wrong message,” The Washington Post, October 13, 2021, https://www.washingtonpost.com/opinions/2021/10/13/how-biden-administration-can-help-haitian-migrants-without-sending-wrong-message/; “DHS secretary: Up to 12,000 Haitian migrants released into U.S.,” by Daniel Uria, United Press International, September 26, 2021, DHS Secretary Mayorkas: As many as 12,000 Haitian migrants released into United States – UPI.com; and “Leaked Border Patrol docs show mass release of illegal immigrants into US by Biden administration,” by Bill Melugin and Adam Shaw, FoxNews.com, October 13, 2021, https://www.foxnews.com/politics/leaked-border-patrol-docs-release-immigrants-us-biden-administration)

(What’s Left of) Our Economy: A Labor Shortage-Spurred Tech Revolution in Construction

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3D manufacturing, 3D printing, Biden, CNBC.com, construction, Diana Olick, Donald Trump, housing, illegal aliens, Immigration, labor shortages, Open Borders, productivity, technology, {What's Left of) Our Economy

As known by RealityChek regulars, there’s abundant evidence that behind most claims of lasting labor shortages by U.S. industries, and the resulting insistence tht more immigration is urgently needed, there’s an industry that’s done almost nothing to improve its productivity. (See, e.g., here.)

In other words, precisely because they’ve been able to rely for so long on an ever expanding supply of cheap labor, these industries have had precious little need to keep costs under control by improving productivity – either by developing labor-saving technologies, or adopting more efficient management practices, or some combination of the two. And the result hurts the entire U.S. economy by retarding progress and knee-capping its best chances of fostering lasting prosperity.

That’s why it was so exciting to read a CNBC.com post yesterday describing the beginnings of a possible productivity-improving technological response to labor shortages (and therefore rising labor costs), by one of the nation’s biggest slacker industries – construction.

Correspondent Diana Olick’s report faithfully presented the residential construction sector’s claim that housing has performed well during the CCP Virus period, but that its potential to keep supporting bady needed growth was endangered by constantly rising costs. And she added that, in addition to building materials becoming ever more expensive, so were workers.

What Olick failed to mention was that housing was a quintessential industry that has long enjoyed the option of compensating by becoming more innovative, but gone down the cheap labor road instead. Indeed, an outsized share of its workforce consists of not only immigrant workers, but illegal aliens. And its labor productivity levels are actually down since 1968 – which is no coincidence.

But the Trump administration’s restrictive immigration policies may finally be forcing home-builders and other construction companies to start using their collective noggins to control costs. As Olick reports, the industry is starting to use 3-D printing technology “in a big way.” According to executives whose companies are using the new technology, it can cut costs by between 10 percent to 40 percent. And one big reason, in Olick’s words, is that “3D-printed homes require very few workers, as the printer does the bulk of the construction.”

Her post also mentions that 3-D-built homes promise to be sturdier and more energy-efficient than their conventional counterparts, and generate less construction waste, too. And business has been so good that one executive told her “The biggest challenge…is we are supply constrained. We have more people asking for us to build houses than we know what to do with now. Every construction system we have is booked up for the next 24 months.”

In fact, from an economy-wide perspective, the biggest, darkest cloud on the horizon is that President Biden’s Open Borders-friendly immigration policies will flood the labor market with low-skill workers again and take the pressure off the construction industry – and other productivity laggards. That result would richly deserve to be called “Build Back Worse.”

(What’s Left of) Our Economy: An Open Borders Mainstay Gets (Kind of) Woke on Immigration

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amnesty, automation, illegal aliens, immigrants, Immigration, Open Borders, productivity, technology, The Economist, wages, {What's Left of) Our Economy

I’ve always felt that one of the most convincing ways to win an argument is to  spotlight instances of sources that normally oppose one’s positions actually agreeing with them. And I just stumbled onto an especially startling example that appeared about a year ago in the The Economist.

It’s often valid to view such dated material as old and therefore irrelevant news. But in this case, The Economist‘s February, 2020 feature titled “Immigration to America is down. Wages are up. Are the two related?” really is a landmark still worth examining, and for at least three reasons.

First, if there’s a single set of policies identified with this British magazine it’s staunch support for free trade. In fact, The Economist was founded in the mid-19^th century precisely to convince the United Kingdom to dismantle its longstanding tariffs. Not surprisingly, the magazine has also always backed the freest possible immigration flows.

Second, February, 2020 was just before the CCP Virus and the massive economic shutdowns it triggered swept over the United States. So The Economist was commenting on trends when the economy was normal by most definitions, and after three years of Donald Trump’s presidency.

And third, of course, even though a substantial return to a pre-virus normal economic normality is now widely expected sometime this year (whether or not President Biden’s virus relief bill and other “Build Back Better” programs are fully enacted or not), the new U.S. administration clearly is determined to turn the immigration spigots back on.

So it really was pretty startling to come across an Economist article leading off with this paragraph:

“In both 2018 and 2019 [U.S.] nominal wages rose by more than 3%, the fastest growth since before the recession a decade ago. Americans at the bottom of the labour market are doing especially well. In the past year the wages of those without a high-school diploma have risen by nearly 10%. Intriguingly, this has come as America has turned considerably less friendly to immigrants, who are assumed by many to steal jobs from natives and lower the wages of less-educated folk. The two phenomena may be connected….”

Moreover, in recent years, “It appears instead that the overall decline in the foreign-born population is a result of falling numbers of low-skilled migrants…. That is probably a consequence of policies implemented by President Donald Trump, as well as the off-putting effects of his rhetoric on foreigners.”

Not that The Economist endorsed this proposition wholeheartedly. The article correctly notes that “many factors” lie behind these wage increases. Indeed, that’s true for most trends in the economy and elsewhere in our big, complicated world. But it turns out that most of the reasons for skepticism about immigration policy’s decisive role cited in the piece are pretty flimsy when examined closely.

For example, minimum wage increases – and their benefits – have by definition been enjoyed exclusively by lower-income workers overall in the United States. But the magazine also has found that average wages in occupations that are especially low-skill-immigrant-heavy (e.g., construction and landscaping work) “are rising considerably faster than wages in other low-paid jobs.”

In addition, The Economist cites findings from the Brookings Institution (hardly a restrictionist organization itself) that “five big metro areas saw absolute declines in their foreign-born populations in 2010-18” and its own research showing that “wages in those areas are now rising by 5% a year….”

Perhaps most important, the magazine’s initial conclusion about the connection between fewer low-skilled immigrants and higher wages for the established national low-skill workforce is qualified with the phrase “but only for a while.”

In this vein, The Economist points to research allegedly demonstrating that during and after past “occasions when America has clamped down on immigration,” the results “ultimately [offered] little benefit to native workers—and may even harm them.” Yet some of these historical episodes – e.g., the freeze and follow-on restrictions on immigration from China that began in the late-19^th century, and expulsions of Mexican workers during the Great Depression of the 1930s – seem  marginally relevant at best to the U.S. economy today.

Even odder, the overarching lesson drawn by The Economist from this and related studies supports a claim made by current-day restrictionists (like me) that wide-open immigration policies retard productivity growth by enabling many industries to use cheap labor as an earnings- and profit-making or boosting crutch, rather than innovate their way to greater success.

According to The Economist, “In the short term, native workers may well see a wage boost as labour supply falls. But businesses then reorient production towards less labour-intensive products; natives take jobs previously occupied by foreign-born folk, which may be worse paid; and bosses invest in labour-saving machinery, which can reduce the pay of remaining workers.”

Yet logically, anyone supporting this position logically must also think that improving productivity and promoting technological progress doesn’t ultimately benefit entire economies – including workers initially displaced. Is The Economist really supporting such stick-in-the-mud-ism?

The answer, strangely, as readers learn in the very next paragraph, is “Of course not.” Because the article proceeds to claim that “Both low- and high-skilled migration are linked with higher productivity.” In other words, higher productivity is a long-run economic blessing after all, and it’s improved both by reducing and increasing low-skill immigration. Got that?

Of course, change at a single magazine, no matter how influential, is no guarantee of policy change.  But such publications aren’t often called opinion leaders for nothing.  And although rhetorically, the Biden administration seems as set as ever to supercharge U.S. immigration flows, maybe it’s no coincidence that its recent  stance on the southern border looks every bit as confused as this Economist take on immigration.       

(What’s Left of) Our Economy: Why Biden’s Immigration-Enabling Goals Couldn’t be Worse Timed

Tags

asylum seekers, California, CCP Virus, coronavirus, COVID 19, Department of Labor, Eduardo Porter, illegal aliens, illegal immigration, Immigration, Jobs, Joe Biden, NAFTA, North American Free Frade Agreement, Open Borders, path to citizenship, Pew Research Center, recession, refugees, services, The New York Times, The Race to the Bottom, wages, Wuhan virus, {What's Left of) Our Economy

Apparent President-elect Joe Biden emphatically and repeatedly told the nation that he’s determined to increase the flow of immigrants to America – whether we’re talking about his promises that will greatly strengthen the immigration magnet (like creating a “roadmap to citizenship” for America’s illegal alien population, tightly curbing immigation law enforcement activities, and offering free government-funded healthcare to anyone who can manage to cross the border lawfully or not), or his promises to boost admissions of refugees, speed systems for processing applications for asylum and (legal) green card applications, and generally “to ensure that the U.S. remains open and welcoming to people from every part of the world….”

During normal recent times such pledges – and the fallout of pre-Trump efforts to keep them – had proven troublesome enough for the U.S. economy and for working class Americans in particular. Inevitably, they pumped up the supply of labor available to U.S.-based businesses, and created surpluses that enabled companies to cut wages with the greatest of ease – exactly as the laws of supply and demand predict.

During the CCP Virus pandemic and its likely economic aftermath, however, this quasi-Open Borders strategy looks positively demented, as emerging trends most recently described by New York Times economics writer Eduardo Porter should make painfully obvious.

According to Porter in a December 1 piece, “The [U.S.] labor market has recovered 12 million of the 22 million jobs lost from February to April. But many positions may not return any time soon, even when a vaccine is deployed.

“This is likely to prove especially problematic for millions of low-paid workers in service industries like retailing, hospitality, building maintenance and transportation, which may be permanently impaired or fundamentally transformed. What will janitors do if fewer people work in offices? What will waiters do if the urban restaurant ecosystem never recovers its density?”

What’s the connection with immigration policy? As it happens, the service industries the author rightly identifies as sectors apparently vulnerable to major employment downsizing are industries that historically have employed outsized shares of immigrant workers (including illegals). And along with other personal service industries, they’re kinds of sectors whose modest skill requirements would continue to offer newcomers overall their best bets for employment.

The charts below, from the Pew Research Center, show just how thoroughly dominated by both kinds of immigrants these sectors, and present similar data broken down by occupation. (The U.S. Department of Labor tracks employment according to both kinds of categories.)

Twenty years ago, in my book The Race to the Bottom, I wrote about news reports making clear that

“immigrants were flooding into California in hopes of landing jobs in labor-intensive industries such a apparel and electronics assembly that NAFTA [the North American Free Trade Agreement] had steadily been sending to Mexico — where most of the immigrants come from! In other words, the state was importing people while exporting their likeliest jobs.” 

And not surprisingly, wages throughout the southern California in particular stagnated.  

If a Biden administration proceeds with its stated immigration plans as quickly as it’s promised (with many actions scheduled for the former Vice President’s first hundred days in office), this epic blunder will wind up being repeated — but this time on a national scale.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Im-Politic: Biden as National Soul-Saver?

Tags

cancel culture, CCP Virus, coronavirus, COVID 19, Democrats, election 2020, illegal aliens, Im-Politic, Immigration, Joe Biden, left-wing authoritarianism, Michelle Obama, morality, politics, progressives, stimulus package, Trump, Trump World, wokeness, Wuhan virus

This Joe Biden thing about “a battle for the soul of America” and “restoring the soul of America” — I’ve never liked the self-righteousness of it from the start. And the more I’ve thought about it since Election Day, and especially as the odds of his becoming President seem to grow, the more worried I get, and the more troubled you should be, too. Two reasons stand out.

First, it’s far from clear that the Democratic nominee has thought through the demographics of his ambition. It’s of course clear that what he means by soul-restoring is that Donald Trump’s election as President – or perhaps more specifically his supposed trafficking in racist and other despicable dog whistles – means that something about America morally has gone badly off-track. But what and among whom exactly? Surely he doesn’t believe that his own soul needs to be restored. Ditto for other Trump opponents.

But what about Trump supporters? Let’s assume for a moment that his personal ethical antennae are finely tuned enough to guide the nation’s as a whole. He’s now promising to be a President for all Americans – including the Trumpers. But if their souls are at best badly corrupted (and at worst, no longer exist at all), then why should he take any of their concerns into account, at least until some semblance of what he considers an acceptable moral fabric is somehow regenerated?

As a result, unless he believes that most of Trump World has simply been duped, and that the scales will steadily drop from their eyes after he’s out of the White House, his recent urging that his compatriots recognize that “We are not enemies. We are Americans” is just as incoherent. After all, when one side of a political contest has no collective soul, then clearly their differences with their moral superiors entail more than (presumably acceptable) disagreements over, say, levels of taxing and spending, or the terms of a trade agreement, or defining foreign policy interests. After all, people lacking a soul, or whose soul is badly broken, are far worse, or qualitatively more difficult to contend with. Arguably, they aren’t even human at all, but something genuinely debased. How can reason and persuasion possibly work with the likes of them?

The second reason for concern about Biden’s rhetoric follows logically from the first. Precisely because consigning large numbers of Americans into the soul-less or broken-soul category clearly precludes dealing with them via conventional political means, this belief indicates that the former Vice President doesn’t even believe that he’s operating in the political realm at all – at least when it comes to Trump supporters. Instead, he’s an agent of virtue itself whose objectives are spiritual – and thereby rule out the idea of significant, and perhaps any compromise.

To be sure, there will remain areas of public policy where meaningful compromise is relatively – e.g., taxing and spending and particularly economic stimulus while the CCP Virus is in pandemic mode. But as has been seen in the stimulus debate so far, both parties in Congress have tried to use such legislation to advance goals not so conducive to give-and-take (e.g., the question of whether illegal aliens should receive any relief).

Everything known about Biden’s temperament also indicates that he’s a compromiser, not a crusader, by nature. Indeed, at various times during the campaign, that’s what he’s claimed he would do.

But there also remain areas of public policy that have never been conducive to meaningful compromise – like immigration, and social issues like abortion. In this vein, one of my own principal worries is still that whatever Biden thinks personally, he’ll lack the spine to resist progressive Democrats pushing their increasingly authoritarian impulses and consequent determination to make Cancel Culture The American Way (along with ever more woke Big Business).

He may also lack much interest in pushing back against the kind of anger and sanctimony and intolerance expressed so congently yesterday by, e.g., Michelle Obama – who tweeted, “Let’s remember that tens of millions of people voted for the status quo, even when it meant supporting lies, hate, chaos, and division.”

Perhaps because the former First Lady is hardly the most extreme member of the Democratic Party, she also added, “We’ve got a lot of work to do to reach out to these folks in the years ahead and connect with them on what unites us.” But she deserves to be asked the same question posed in this post to Biden – from this standpoint, how much important common ground could exist with supporters of “lies, hate, chaos” etc.? Moreover, Biden himself has said that this soul-restoring business was what motivated him to seek the presidency again in the first place. (See the article in The Hill linked above.) So maybe lately there’s a lot more common ground between him and the progressive authoritarians than widely realized.

Here’s one way Biden could begin to ease concerns like this whether he becomes the next President or not. He could spell out in reasonably concrete terms just which of the motivations that have fueled two massive national Trump votes he does view as legitimate – and therefore where he’s ready in principle respond with more than tokenism. Unless and until he does, literally tens of millions of Americans will be perfectly justified in assuming that Biden’s talk of national unification and reconciliation is completely hollow, that they’ll return to Forgotten American status (and maybe worse), and that their own and the nation’s best future hopes rest with making sure he’s a one-term President, too.

Im-Politic: When It’s Open Borders for U.S. Stimulus Funds

Tags

CCP Virus, Central America, coronavirus, COVID 19, El Salvador, Financial Times, Guatemala, Honduras, illegal aliens, Im-Politic, immigrants, Immigration, Mexico, Nicaragua, Open Borders, remittances, stimulus, The Washington Post, Wuhan virus, {What's Left of) Our Economy

Ever since the CCP Virus began devastating the U.S. economy, I’ve been calling for the U.S. government to “go big” on stimulus. That means I’ve been especially frustrated with the large number of Congressional Republicans who seem determined to keep down the amount of unemployment and other aid to be provided by the new round of proposed relief legislation that’s still being debated – even after the last supplemental jobless benefits have run out.

Here’s a development, though, that justifies some skepticism about shoveling money out the door as fast as possible: As reported in both The Washington Post and the Financial Times, it’s clear that a pretty sizable share of the income support funds being sent to immigrants in the United States have been forwarded on to their home countries, especially Mexico and the Central American states of El Salvador, Guatemala, Nicaragua, and Honduras. And it’s surely the same story for whatever Paycheck Protection Program monies have been sent to businesses owned by newcomers from these countries. 

In addition, these articles add to the evidence undercutting the common claim (debunked already in RealityChek posts like this one) that even illegal residents greatly benefit the U.S. economy on net because these border crossers wind up spending so much on domestic goods and services, thereby boosting America’s growth and overall employment, and contributing to the national tax base.

Compared with the total size of the U.S. economy and all the stimulus funding provided to date, the sums sent overseas (called remittances) are piddling. Mexico, for example, received $36 billion worth of these payments last year, and are running 10.6 percent higher this year so far. And this source tells us that nearly all came from the United States. Yet the federal government has provided literally trillions of dollars worth of virus-related aid to individuals and businesses.

At the same time, compared with the U.S. population (currently some 330 million), the share born in these countries and living in the United States both legally and illegally remains pretty modest itself – about 14.8 million in 2016 (the latest data available). That’s less than five percent. Further, illegals from Mexico and the Central American countries represented an estimated 46 percent of the total foreign born population in the United States as of 2017, and they’re not eligible for federal relief.  This means that it’s a relatively small number of Americans sending those tens of billions of dollars overseas, and a significant amount of resources transferred abroad per immigrant. (The number of actual senders is even smaller if you just count workers and business owners, and not their non-working family members.) 

Still, at a time of great privation in the United States, why are any government resources going right out the door (other than spending on imports – which of course takes place among these immigrants, too)? Clearly there are currently many millions of Americans for whom collectively about $35 billion would make a real difference nowadays.

By the way, remittances aren’t sent home only by immigrants in the United States from Mexico and Central America. Immigrants from everywhere transfer these funds (including to China, reported to be second biggest recipient country).  But Mexico is Number One by far and the Central American countries rank high as well.  ` 

The remittances information in the Post and Financial Times articles is also difficult at best to square in particular with the claim that illegal aliens are major engines of U.S. growth and prosperity. It’s already well-established that most work in low-wage jobs – so their spending power is pretty modest to start with. Now, both the Post and Financial Times articles report that it’s common for them to send abroad hundreds and even thousands of dollars each month.

These funds are overwhelmingly going to help hard-pressed family members in sending countries, which clearly stems from admirable values. Nevertheless, this is all money that does little, if anything, to enrich the U.S. economy, or create more employment for Americans. Unless you think that families in Mexico or Central America that depending heavily on funds from the United States are spending like gangbusters on imports of U.S.-made goods and services?

Because I’m a “go big” stimulus supporter, I’m in a lousy position logically speaking to insist that legislation going forward contain lots of strings to prevent waste and even fraud.  Those can’t be neglected, but they can’t be top priorities for anyone like me who believes that this is still a full-blown economic emergency. But I’m also wondering how hard it would be for Washington at least to tax funds like remittances that simply leave the country. 

What I’m even less optimistic about, though:  that even when confronted with this new information about remittances from illegals, the bipartisan Open Borders Lobby will stop making transparently absurd claims that that ever more of these newcomers are essential for ensuring continued American well-being, or rebuilding it.

Im-Politic: The Mainstream Media Keep Coddling Illegal Alien Crime

Tags

Central America, crime, gang violence, gangs, illegal aliens, Im-Politic, Immigration, Long Island, Mainstream Media, MS-13, Open Borders, Rupert Murdoch, The New York Post, The New York Times, Trump

Ah, the best laid plans of mice and bloggers.

I’m in the middle of a planned little RealityChek break but sometimes you can be sitting around reading the papers lazily and an item (or two) just jolts you into action. In this case, it was the radically different coverage by The New York Post and The New York Times of Friday’s announcement of mass arrests on Long Island, New York, of alleged members of the Central America-based gang MS-13.

MS-13 is held responsible for any number of horrific murders and other crimes in the area (and around the nation), and the news made the front pages of both papers. The Post‘s initial display was more prominent, but then again, it’s a more regionally focused publication, so no one can have any legitimate beef with The Times somewhat lower key approach. Indeed, let’s not forget that The Times is a more than somewhat lower-keyed paper to start with.

But here’s what should be the subject of a big beef. Even though immigration policy was by no means the Post article’s main angle, the print edition article did quote “a federal source” (federal, state, and local law enforcement authorities worked together on the investigations leading to the arrests) as saying that an estimated half of the defendants are non-citizens in the United States illegally. (This claim was left out of the on-line version.) Both versions of the article quoted (presumably other) officials as stating that the newly indicted, in the reporters’ words, “include illegal immigrants, US citizens, and non-citizens who are in the country legally.”

And at the very end, the article noted that “President Donald Trump has often cited the dangers of the MS-13 “infestation” to push for tougher immigration laws.”

All in all, then, this tabloid, owned by Australian conservative media mogul Rupert Murdoch, and which often covers and comments on the President favorably, looks to have provided an account of the arrests with an appropriate degree of balance and context.

You’d think that The New York Times, which long has proudly boasted that it presents “All the News That’s Fit to Print” would have performed at least as well. But do you know how many times The Times coverage, in print or on-line, mentioned the legal status of any of those arrested? Exactly none.

The paper did manage, though, to report – quite prominently in the piece – that “The gang’s notoriety and bloody tactics have caught the attention of President Trump, who has often invoked its name and reputation as a way to justify his immigration policy. He has referred to the group as an ‘infestation’ and to its members as ‘animals.’ In 2018, he invited the mother of one MS-13 murder victim to be his guest at the State of the Union address.

“And on Friday, the president went on Twitter to use the arrests as an argument for his immigration policy, saying that the gang takedown was an example of how ‘we are getting MS-13 gang members, and many other people that shouldn’t be here, out of our country.’”

In other words, any’one relying solely on The Times coverage could easily have gotten the impression that Mr. Trump is simply using MS-13 as a baseless – or at least suspicious – way to fan immigration-related fears. 

Since it’s a free country, The Times is perfectly within its rights to pretend or to suggest that the spread of Central American-based gangs like MS-13 has absolutely nothing to do with American immigration policy — except in the minds of xenophobes like President Trump.  But this kind of treatment belongs in its commentary pages, not in hard news reporting where facts and accurate context are supposed to matter.

Sadly, though, the paper’s coverage is only the latest instance of Mainstream Media news organizations — and other Open Borders supporters — coddling a vicious criminal ring which would have only a minor presence in America had the nation’s previous Presidents and Congresses taken seriously their responsibility to enforce border security.  As a result, it’s legitimate to wonder how many more innocent residents of this country, legal and illegal, need to be victimized by illegal alien crime for its enablers to wake up. 

Im-Politic: Why Illegal Aliens Feel So Entitled

Tags

Constitution, Equal Protection Clause, Fourteenth Amendment, ignorance of the law, illegal aliens, Im-Politic, immigrants, Immigration, Supreme Court

At first glance, Thursday’s Supreme Court decision holding that an illegal alien couldn’t be convicted for possessing a firearm because he didn’t understand his status looks like the height of illegals’ coddling at the expense of common sense – not to mention obvious public safety considerations, and the legal principle that “ignorance of the law is no excuse” for violating it.

In fact, although the 7-2 ruling is defensible on the narrowest possible legal grounds (grounds that are entirely legitimate and time-honored bases for Court decisions, especially for believers in what’s known as the doctrine of judicial restraint), it reveals something at least as disturbing: how thoroughly and dangerously recent decades of lax pre-Trump immigration policies have fostered a sense of entitlement among illegals. And only slightly less disturbing: The law itself that’s in question contains its own evidence of illegal aliens coddling.

The majority’s opinion turned on the specific question of whether a law barring illegal aliens from owning firearms permits conviction only if the defendant “knowingly” violates the statute. Although this conclusion seems to overlook completely the venerable “ignorance of the law” maxim, as the majority importantly reminds, this principle (like most others worth following) isn’t absolute. I also find convincing the argument that the statute’s wording makes clear that, in this particular case, lawmakers intended the “knowingly” criteria to apply to illegal aliens’ awareness of their immigration status under the law.

But at this point, I get off the boat policy-wise. Because how on earth does any illegal alien in the United States who can pass a sanity test get the idea that he can live his or her life without being acutely aware of their immigration status? Similarly, why did the defendant believe that he had just as much of a right to own a (substantially regulated) deadly weapon as any legal American resident? Especially when he had just been told that his legal immigration status was hanging by a threat – at best. And if you think that the second and third questions are exaggerations, get a load of this description (from the dissenting opinion) of the defendant’s actions after the college he was enrolled him told him by email that, because of poor academic performance, “he was no longer enrolled and that, unless he was admitted elsewhere, his status as a lawful alien would be terminated”:

“Petitioner’s response was to move to a hotel and frequent a firing range. Each evening he checked into the hotel and always demanded a room on the eighth floor facing the airport. Each morning he checked out and paid his bill with cash, spending a total of more than $11,000. This went on for 53 days.”

To me, the answer obviously is that for so long it has been so easy to enter the United States illegally, and for legal entrants to stay once their visas have expired, that many believe that they have every right to be in the country and to be treated exactly like legal residents and citizens.

In some instances, they’re correct. Principally, the Supreme Court has ruled that the Equal Protection Clause of the Constitution’s Fourteenth Amendment means that everyone in the United States at any given moment, no matter what the conditions, is entitled to the full range of protections offered by U.S. law. But these convictions also frequently extend to assumptions that illegals are also due any number of welfare state benefits, privileges like drivers’ licenses, and even the right to vote.  And of course, these assumptions have constantly be aided and abetted – and often created by – Open Borders-oriented illegal aliens’ advocacy groups and even state and local governments.

It’s equally obvious that the federal gun ownership law (which is found starting on p. 13 of the opinion linked above), unwittingly or not, betrays the illegals-coddling mindset mentioned above. After all, why specify that illegals need to violate the statute “knowingly.” They’re not supposed to be here in the first place. Systematic knowledge about them is lacking – including criminal records in their home countries. Why should they be granted any right to possess a gun under any circumstances?

So it’s clearly time to rewrite the law – especially since the “knowingly” standard is even more absurd for many other categories of individuals it denies gun ownership, like “fugitives from justice” and recipients of court orders restraining them from harming or harassing their “intimate partners” and the children thereof.

After all, one of the clearest lessons about immigration policies taught over the decades since the 1986 amnesty is that the messages sent by Washington’s words and deeds greatly influence foreigners’ willingness to enter the United States illegally. If a reasonable degree of control over U.S. borders is to be reestablished, it’s time to send out a new one: From now on, within the legal bounds set by the Equal Protection Clause, American law is going to start making it harder for illegal aliens to behave in ways that endanger citizens and other legal residents, not easier.

Im-Politic: A Better Way to Pressure Mexico on Immigration

Tags

Border Crisis, border security, Central America, Charles Grassley, illegal aliens, Im-Politic, immigrants, Immigration, Mexico, migrants, remittances, tariffs, Trade, Trump, U.S.-Mexico-Canada Agreement, USMCA

It’s not every day that I praise veteran Republican Senator Charles Grassley of Iowa. In fact, I don’t believe I’ve ever praised him in print. On trade policy he’s often especially especially clueless – his last foray into this field consisted of threatening to use his chairmanship of the Senate Finance Committee to scuttle the U.S.-Mexico-Canada Trade Agreement (USMCA) unless President Trump withdrew his tariffs on metals imports from Mexico and Canada.

(Grassley was upset because Mexico in particular had retaliated by slapping tariffs on some key American farm products exported by states like Iowa. He didn’t seem to realize that, as I’ve written here, the tariffs needed to be global in scope to be effective. Meanwhile, however serious American farmers’ woes, they began in earnest years before any Trump tariffs went into effect.)

So imagine my surprise yesterday upon learning that Grassley has proposed a response to Mexico’s foot-dragging on helping to ease the crisis on its border with the United States that’s much better than President Trump’s tariffs.

According to Grassley, the way to pressure Mexico to tighten its own curbs on the floods of Central Americans streaming through its territory toward the United States is to tax the remittances sent to their home country by Mexicans who have moved northward both legally and illegally.

Remittances consist of money sent by immigrants back to their home country – usually to relatives. They encourage immigration because they come from wages earned by newcomers to the United States that are much higher than those they can make in their countries of origin.

And we’re unmistakably talking big numbers – especially for Mexico. The country’s own central bank pegged them at almost $31.5 billion last year. That’s more money coming into the Mexican economy than it makes from oil exports, and in fact its second largest foreign exchange earner after auto parts exports.

Unlike tariffs, remittances taxes wouldn’t harm Americans who buy imports from Mexico – whether consumers or businesses. All the victims would be Mexicans in Mexico. And because so many poor Mexicans in particular rely on these funds to help maintain and improve their living standards, a smaller flow would squeeze their finances and surely increase political instability in a country that’s long suffered more than its share of turmoil. Don’t think Mexico’s leaders – who are already sounding inclined to make concessions to Mr. Trump to avoid the threatened tariffs – could brush these sanctions off.

At least as important, unlike the proposed tariffs, remittance taxes wouldn’t endanger Congressional passage of the USMCA or undermine the Trump administration’s China trade policies by reducing Mexico’s attractiveness as an alternative export platform for companies looking to move in whole or in part out of the People’s Republic.

The President has actually spoken of taking this step to raise the resources needed to finance a Border Wall, but never followed through. At the time, covert and overt Open Borders supporters charged that the move could be counterproductive, since the remittances increased the well-being of their recipients enough to encourage them to stay in Mexico.

But since these payments still represent only a fraction of the earnings of Mexicans in the United States, it makes no sense to believe that many Mexicans in Mexico seriously contemplating moving across the border would be satisfied by receiving a fraction of a loaf if they thought it was all potentially available.

It’s possible that the Trump tariff threat could suffice to produce enough of a Mexican response to satisfy him on border security and declare victory with no levies. In this vein, it’s significant that Mexico’s president has already signaled his willingness to appease Mr. Trump somehow. But a remittances threat could have accomplished the same goal with much less muss and fuss. If negotiations with Mexico can’t resolve the issue by the announced Trump deadline of June 10, switching tactics to a remittances tax a la Grassley would be an unmistakable no-brainer.