The economy does not need illegal aliens

Here is a terrific example of why City Journal is the best magazine in the world. Steven Malanga gives us a lesson in history and economics regarding immigration, legal and illegal:

. . .as many Americans sense and so much research has demonstrated. America does not have a vast labor shortage that requires waves of low-wage immigrants to alleviate; in fact, unemployment among unskilled workers is high—about 30 percent. Moreover, many of the unskilled, uneducated workers now journeying here labor. . . in shrinking industries, where they force out native workers, and many others work in industries where the availability of cheap workers has led businesses to suspend investment in new technologies that would make them less labor-intensive.

So much for the ravings of morons like New York's Mayor Bloomberg who tells us the the economy will collapse without illegals.

Yet while these workers add little to our economy, they come at great cost, because they are not economic abstractions but human beings, with their own culture and ideas—often at odds with our own. Increasing numbers of them arrive with little education and none of the skills necessary to succeed in a modern economy. Many may wind up stuck on our lowest economic rungs, where they will rely on something that immigrants of other generations didn’t have: a vast U.S. welfare and social-services apparatus that has enormously amplified the cost of immigration. Just as welfare reform and other policies are helping to shrink America’s underclass by weaning people off such social programs, we are importing a new, foreign-born underclass. As famed free-market economist
Milton Friedman puts it: “It’s just obvious that you can’t have free immigration and a welfare state.”

How bad is it?

If the benefits of the current generation of migrants are small, the costs are large and growing because of America’s vast range of social programs and the wide advocacy network that strives to hook low-earning legal and illegal immigrants into these programs. A 1998 National Academy of Sciences study found that more than 30 percent of California’s foreign-born were on Medicaid—including 37 percent of all Hispanic households—compared with 14 percent of native-born households. The foreign-born were more than twice as likely as the native-born to be on welfare, and their children were nearly five times as likely to be in means-tested government lunch programs. Native-born households pay for much of this, the study found, because they earn more and pay higher taxes—and are more likely to comply with tax laws. Recent immigrants, by contrast, have much lower levels of income and tax compliance (another study estimated that only 56 percent of illegals in California have taxes deducted from their earnings, for instance). The study’s conclusion: immigrant families cost each native-born household in California an additional $1,200 a year in taxes.

Well, so much for how they are hard working and tax paying.

This is my favorite part. Remember how we are constantly reminded that without illegal Mexicans we would be paying $25.00 for a head of lettuce and $200.00 for a meal at the local Denny’s? Let’s find out the truth:

In many American industries, waves of low-wage workers have also retarded investments that might lead to modernization and efficiency. Farming, which employs a million immigrant laborers in California alone, is the prime case in point. Faced with a labor shortage in the early 1960s, when President Kennedy ended a 22-year-old guest-worker program that allowed 45,000 Mexican farmhands to cross over the border and harvest 2.2 million tons of California tomatoes for processed foods, farmers complained but swiftly automated, adopting a mechanical tomato-picking technology created more than a decade earlier. Today, just 5,000 better-paid workers—one-ninth the original workforce—harvest 12 million tons of tomatoes using the machines.

The savings prompted by low-wage migrants may even be minimal in crops not easily mechanized. Agricultural economists Wallace Huffman and Alan McCunn of Iowa State University have estimated that without illegal workers, the retail cost of fresh produce would increase only about 3 percent in the summer-fall season and less than 2 percent in the winter-spring season, because labor represents only a tiny percent of the retail price of produce and because without migrant workers, America would probably import more foreign fruits and vegetables. “The question is whether we want to import more produce from abroad, or more workers from abroad to pick our produce,” Huffman remarks.

For American farmers, the answer has been to keep importing workers—which has now made the farmers more vulnerable to foreign competition, since even minimum-wage immigrant workers can’t compete with produce picked on farms in China, Chile, or Turkey and shipped here cheaply. A flood of low-priced Turkish raisins several years ago produced a glut in the United States that sharply drove down prices and knocked some farms out of business, shrinking total acreage in California devoted to the crop by one-fifth, or some 50,000 acres. The farms that survived are now moving to mechanize swiftly, realizing that no amount of cheap immigrant labor will make them competitive.

Let’s see, the buffet at the local Golden Corral costs around $8.50. 3% of that would be 26 cents. By gosh I’ll pay it!

But what about all the stories we hear about how America absorbed millions of immigrants earlier in our history during the “Ellis Island” era and how they were such a boon to our economy?

Hampering today’s immigration debate are our misconceptions about the so-called first great migration some 100 years ago, with which today’s immigration is often compared. We envision that first great migration as a time when multitudes of Emma Lazarus’s “tired,” “poor,” and “wretched refuse” of Europe’s shores made their way from destitution to American opportunity. Subsequent studies of American immigration with titles like The prooted convey the same impression of the dispossessed and displaced swarming here to find a new life. If America could assimilate 24 million mostly desperate immigrants from that great migration—people one unsympathetic economist at the turn of the twentieth century described as “the unlucky, the thriftless, the worthless”—surely, so the story goes, today’s much bigger and richer country can absorb the millions . . . now venturing here.

But that argument distorts the realities of the first great migration. Though fleeing persecution or economic stagnation in their homelands, that era’s immigrants—Jewish tailors and seamstresses who helped create New York’s garment industry, Italian stonemasons and bricklayers who helped build some of our greatest buildings, German merchants, shopkeepers, and artisans—all brought important skills with them that fit easily into the American economy. Those waves of immigrants—many of them urban dwellers who crossed a continent and an ocean to get here—helped supercharge the workforce at a time when the country was going through a transformative economic expansion that craved new workers, especially in its cities. A 1998 National Research Council report noted “that the newly arriving immigrant nonagricultural work force . . . was (slightly) more skilled than the resident American labor force”: 27 percent of them were skilled laborers, compared with only 17 percent of that era’s native-born workforce.

Many of these immigrants quickly found a place in our economy, participating in the workforce at a higher rate even than the native population. Their success at finding work sent many of them quickly up the economic ladder: those who stayed in America for at least 15 years, for instance, were just as likely to own their own business as native-born workers of the same age, one study found. Another study found that their American-born children were just as likely to be accountants, engineers, or lawyers as Americans whose families had been here for generations.

What the newcomers of the great migration did not find here was a vast social-services and welfare state. They had to rely on their own resources or those of friends, relatives, or private, often ethnic, charities if things did not go well. That’s why about 70 percent of those who came were men in their prime.

So, during that period the immigrants who came here had skills that were needed. Interesting. Another thing; many of them were farmers in their home countries who sold out to come here. They arrived with money to buy land and tools and livestock. They also came with a life’s experience in running a farm, not just doing manual labor on one.

Here’s another interesting tidbit from the article:

. . . many of them left when the economy sputtered several times during the period. For though one often hears that restrictive anti-immigration legislation starting with the Emergency Quota Act of 1921 ended the first great migration, what really killed it was the crash of the American economy. Even with the 1920s quotas, America welcomed some 4.1 million immigrants, but in the Depression of the 1930s, the number of foreign immigrants tumbled far below quota levels, to 500,000. With America’s streets no longer paved with gold, and without access to the New Deal programs for native-born Americans, immigrants not only stopped coming, but some 60 percent of those already here left in a great remigration home.

Like so many of us have been saying; if you take away the jobs and deny them welfare they will pick up and go home of their own free will. There will be no need to stage massive deportations.

Bloggers who quote an article on another website always urge you to go and read the rest, but in this case you really need to. It is a long piece and I only touched on part of it here. There is a wealth of information here that every American needs to know.