Are Illegal Immigrants Hurting Us?

I discussed illegal immigration a few months ago ( http://mark-thinkdeep.blogspot.com/2009/11/solution-to-illegal-immigration.html ) and, at the time, indicated that further discussion was needed to give proper attention to the topic. Considering the hot debate that has been going on over the Arizona law, now seems like a good time to address the issue.

We’ve likely heard some argue that illegal immigrants hurt our economy. This is true, but for what reason? Many people argue that they take our jobs and then send the money back to their homeland. Does this happen? Absolutely. Does this hurt us? Absolutely not.

First, let’s discuss them taking our jobs. Many of them do not take our jobs, as the jobs they pick up are below acceptable wages for American workers. In other words, if the illegal immigrants weren’t here to take them, the jobs wouldn’t exist. Does this hurt us? No, quite the opposite. They provide services that we otherwise could not afford, or at least were not willing to pay for. They bend the cost curve down, and make products and services more affordable for all. At the expense of who? Perhaps at the expense of those who were providing those same services at a premium. Should their overpriced jobs be protected? No, it’s not good policy to forcibly protect a small few inefficient businessmen and thus lower the standard of living for all. These workers will cry unfair, but who is really being unfair if they regulate our freedom to trade as we choose? If they can’t innovate better ways of providing their services more efficiently, then they need to choose an alternate profession.

Of course, some of these illegals do, in fact, take some of the lower paying jobs that Americans could have been filling. Again, does this hurt the economy? No and yes. No, because if any person, illegal or not, works to provide for himself and his family, he is no burden on society, and any surplus work he provides over the necessities of his family adds to the overall economy. But if, by taking a job, causes another to leech on society, rather than find a way to provide for himself, then the net effect is negative. Note, however, that this is because society provides leeching alternatives to having to work. Instead of diligently seeking out employment or creating employment for himself, one may relegate himself to unemployment and still live comfortably.

Now, what about these workers sending their earnings out of the country? Does this not hurt our economy? Of course not. As I’ve discussed before, money is simply an IOU, a voucher for services and products made in the USA. Eventually that money must be spent in the USA, thus is doesn’t matter one bit where that money is, or who possesses it. The money was earned in the USA, and will ultimately be spent in the USA.

So, how do illegal immigrants hurt our economy then? Simply put, the services they provide are not sufficiently valuable to pay the deficit they cause in services received. We have somehow, in our great charitable spirit, agreed to pay for medical, education and other services for these illegal immigrants that they do not pay for. They do not pay taxes, so there is no direct contribution to these services whatsoever. And the surplus contribution of wealth that they contribute to local society through hard work, although unmeasured as far as I know, surely falls far short of sufficient to pay for these services.

It is not really the immigrants’ fault that they leech on society. It is our own. We must remove the unpaid benefits from the table for these who are not here according to the law if we wish to be unharmed economically by these workers. And remove the locks and bolts off the front door so they can come in that way, rather than sneaking in the back.