immigration

okay, a short post on the same day as a super long one. (sorry!)

Many who speak out against illegal immigration say that the increased worker supply depresses wages and puts "real americans" out of work.

In the short term, they are probably right.

Many of those same people are scared to death of factories in China or call centers in India because they depress wages and put "real americans" out of work.

I could talk about comparative advantage, but at a very low skill level, they're right again.

But here's where people have a disconnect. Companies will do anything to save money. They can cut labor costs by continuing to operate in the US and hiring (possibly illegal) immigrants, or they can cut labor costs by moving overseas. Those are the options. You can't force companies to spend more money than they want to spend. Well, I suppose you could pass some law requiring them to both stay in the US and spend more. But you know what they could do then? Go out of business.

So you only have two choices: let companies hire immigrants, or let companies outsource. Which is worse? Even if you are totally xenophobic and short sighted (maybe even because you are), isn't outsourcing worse? At least immigrants wages, even under the table, untaxed, and way below minimum wage (descriptions which are not always true), are turned around and spent in the US economy. Immigrants still need to buy food and shelter and transportation. Do you prefer it if those low cost foriegners are contributing to your own GDP or to India's?

I am oversimplifying a lot of things. I'm still right, though.