Economics of Illegal Immigration

I would like to remind folks that more than being a legal issue, illegal immigration is a labor market issue. This makes it an economic problem and government cannot solve economic problems. Governments can only make political decisions. Economic decisions are beyond the capability of any government. An economic decision is made when there is no choice but to economize. An economic decision is always a last choice. We would all like to have all we want of everything we desire but we are forced to economize. Alwl pr oposals to handle the current situation on the Mexican border are political decisions, so with any of these the problem will get worse.
I have long been a proponent of an open border with Mexico. It would be easy enough to give anyone who wants to visit a picture id after taking finger prints or even a DNA sample. It is a myth that illegal immigration hurts the U.S. economy. It is almost impossible for any stranger to visit a foreign country without creating additional economic activity.
The flow of immigrants is not going to slow. The cause is the huge difference in pay for foreign workers and American workers with the same level of education. There is a constant incentive to go where there is higher pay. In time this imbalance will be leveled no matter what. Americans will earn less and workers in other countries will earn more.
Politicians who believe Hispanics are a group who will be big government loving constituents are going to get a sad surprise. Over the years, the rank and file in Latin countries have learned to coexist with governments. Much of economic life in Mexico is conducted completely off the government’s radar. What politicians will end up with is a multitude of businesses that report no income, pay no taxes and are assumed not to exist. That is the way life is in Mexico. How do I know? I have lots of Mexican friends and I am glad of it.
On another note, reports of Hispanic travelers paying $4000 to $10,000 to be smuggled into the United States are lies. There are reports of families in Honduras saving $5000 and paying to be smuggled into the United States. Poor people in the United States are rich compared to poor people in Latin America. How many American poor save $5000? I have never heard of a case. If it was possible to save $5000 in Honduras, people would be leaving Detroit and going down there.

Free Cheese

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.

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