Immigration and Cost-Minimization

It surprises me that Americans are caught with their pants down when it comes to the debate on illegal immigration. Each demographic, rich or poor, wants to wag their finger and shout curses upon their countrymen over the ruin of the once-great nation. But the truth is far more simple and boorish than the pundits would care to broadcast.

From a Democratic perspective, illegal immigrants are a source of cheap votes. They require huge sums of government cash to remain financially independent and their descendants are numerous. Typically, second-generation immigrants (and let’s be fair here — we mean Mexicans, Guatemalans, Dominicans and Haitians) are just as loyal as their parents, due to the social programs they were born into. If your decision is between free money or hard labor for low wages, then it’s really no decision at all.

But let’s not point the finger at the donkey-riders alone. Their strategy is tried-and-true and has worked as far back as the days of Tammany Hall and Boss Tweed. If it works, why change? The GOP and their talking heads enjoy using this fact as a talking point (at times their only talking point) to rally the faithful to the cause du jour. Democrats are “socialists,” supporting the lazy, ruining business, on-and-on, ad nauseum. But the “reds” are equally to blame for the endless tide of immigration coming through our borders, whether FOX “News” or the pill-popping Limbaugh will admit it or not.

Republicans represent the business class of American society. Sure, they’ll sing the praises of the military and use Jesus and pro-life sentiment to warm the cockles of your heart, but at the end of the day, only one thing matters: Profit. A business does well when it profits most, generating surplus income by reducing cost. Rent, insurance, worker’s compensation, liability insurance, materials, inspections and, most importantly, wages. One of the few elements of a business’ ledger which can be cut to increase profit is the monies owed to its employees. We plainly see this in countries where the minimum standard of living is left to the free market. Chinese workers make approximately $1.50 per hour in a textile plant; Mexican auto workers making around the same. This is the easiest example of why labor is outsourced to the third world, as labor costs cannot be lowered below the minimum wage in the United States.

What can be done, however, is a bit more sinister and under-handed. As our dollar slowly devalues into useless toilette paper, the minimum wage remains static, unchanged against the rising cost of living. Workers making $8 today ($1280 per month) in my own city face an average gas price of $3.75 per gallon in the winter. 10 years ago, it was $1.62, with a $5.75 ($920 per month) minimum wage. Although the individual income has risen by 28%, gasoline prices have risen 131%. The disparity is clear, although a lot of math and comparison need to be done to see how things are accomplished.

With the devaluation of the American dollar, the wages a business pays to their workers are being organically lowered. The answer to this problem would obviously be a higher and more proportionate wage for the employee, but this is where illegal immigration comes into play for the business class of America. As competition lowers prices, it also lowers wages. The huge influx of cheap and desperate labor ensures that jobs which once paid a living wage are now hanging onto the minimum wage safety rail. Income is not rising, but profitability for large businesses is increasing.

For those who haven’t caught on, this is why the Republican Party will never seriously consider immigration reform. They will pay lip service, but their voting record in the House and Senate over the past 20 years shows little initiative being taken to verify Social Security numbers, remove additional child tax credits, or end the 1,000 lb stone around America’s neck: NAFTA. In this case, both parties are two sides of the same, greedy coin; one you’re unlikely to ever have in your pocket.