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	<title>Citizen Economists &#187; illegal immigrants</title>
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	<link>http://www.citizeneconomists.com/blogs</link>
	<description>Citizen Economists is an online economics magazine written by citizen journalists. These ordinary citizens provide reports and commentary on the current events affecting the economics of the fields they work in.</description>
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		<title>Jobs Americans Won’t Do?</title>
		<link>http://www.citizeneconomists.com/blogs/2011/12/01/jobs-americans-won%e2%80%99t-do/</link>
		<comments>http://www.citizeneconomists.com/blogs/2011/12/01/jobs-americans-won%e2%80%99t-do/#comments</comments>
		<pubDate>Thu, 01 Dec 2011 15:00:11 +0000</pubDate>
		<dc:creator>Simon Grey</dc:creator>
				<category><![CDATA[Economic Theory]]></category>
		<category><![CDATA[government spending]]></category>
		<category><![CDATA[illegal immigrants]]></category>
		<category><![CDATA[immigration]]></category>
		<category><![CDATA[labor market]]></category>
		<category><![CDATA[minimum wages]]></category>
		<category><![CDATA[taxation]]></category>
		<category><![CDATA[unemployment]]></category>

		<guid isPermaLink="false">http://www.citizeneconomists.com/blogs/?p=9963</guid>
		<description><![CDATA[It looks like that canard is just plain wrong: <p>Unemployment rates have fallen in Alabama amid new legal pressure on companies to comply with a popular immigration reform law.</p> <p>September was the first full month that the reform was in force, and the unemployment rate fell from 9.8 percent in September to 9.3 percent <span style="color:#777"> . . . &#8594; Read More: <a href="http://www.citizeneconomists.com/blogs/2011/12/01/jobs-americans-won%e2%80%99t-do/">Jobs Americans Won’t Do?</a></span>]]></description>
			<content:encoded><![CDATA[<div>It looks like that canard is <a href="http://dailycaller.com/2011/11/21/unemployment-drops-as-alabamas-immigration-reform-enacted/">just plain wrong</a>:</div>
<blockquote><p>Unemployment rates have fallen in Alabama amid new legal pressure on companies to comply with a popular immigration reform law.</p></blockquote>
<blockquote><p>September was the first full month that the reform was in force, and the unemployment rate fell from 9.8 percent in September to 9.3 percent in October, according to a Nov. 18 report from the state government.</p></blockquote>
<blockquote><p>The rates fell from 9.9 percent to 9 percent in Etowah County, from 8.8 percent to 8.1 percent in Marshall county, and from 11.6 percent to 10.6 percent in DeKalb county. [Hat tip: <a href="http://market-ticker.org/akcs-www?singlepost=2798613">Karl Denninger</a>.]</p></blockquote>
<p>As <a href="http://cygne-gris.blogspot.com/2011/11/cheap-labor-is-not-solution.html">I’ve written before</a>, illegal labor and minimum wage don’t go together because illegal labor prices legal labor out of the market.<span> </span>This is very simple economics.<span> </span>If you increase supply of something without increasing demand, prices will drop.<span> </span>And, if there is some sort of price floor in that market (think minimum wage), then that which has a price floor will be priced out at the margin.<span> </span>Therefore, when you decrease supply of something while demand remains stagnant, price will rise and marginal purchases will occur again.<span> </span>Incidentally, that’s precisely what happened in Alabama, and that’s what should happen in every state.</p>
<p>If there are any governors who might be squeamish about the idea of booting illegals back to the third-world, dirt-ridden country from which they came, let me offer you three benefits, beyond the simple reduction in unemployment rates, for your consideration.</p>
<p>First, government expenditures will decrease because you will no longer have to pay for free-riding illegals.<span> </span>Education costs, medical care costs, law enforcement costs, etc. will all decline because you won’t have to pay for social programs for illegals, or police them.</p>
<p>Second, tax revenues will increase.<span> </span>If people earn money, they will have taxable income.<span> </span>They will also inevitably spend some of it, which means increases in sales tax revenue.<span> </span>There might even be indirect increases in property tax revenue, since increased employment should increase demand for property at the margins.</p>
<p>Finally, this will head off potential political unrest.<span> </span>In spite of multi-culturists’ best attempts at convincing people that people from different cultures are all the same, the simple fact of the matter is that people from different cultures are different from one another.<span> </span>Another simple truth:<span> </span>People hate people who are different from them (just ask the Jews what the Germans thought of them in the 30’s), and they love to scapegoat people from other countries and cultures.<span> </span>Sometimes this can be violent.</p>
<p>If, however, you kick illegals out your state, they won’t be around to be scapegoated, which means that you have likely prevented bloodshed.<span> </span>Also, with increased employment as a result, you have a population that will not be as inclined to view violence against other ethnic groups as necessary.</p>
<p>Frankly, if this is not enough to compel you to implement a policy similar to Alabama’s, then you are simply unfit to be a governor, and will deserve the wrath of the voters during the next election or uprising, whichever comes first.<span> </span>Don’t say I didn’t warn you.</p>
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		<title>Is There a Correlation Between Crime and the Economy?</title>
		<link>http://www.citizeneconomists.com/blogs/2008/09/10/is-there-a-correlation-between-crime-and-the-economy/</link>
		<comments>http://www.citizeneconomists.com/blogs/2008/09/10/is-there-a-correlation-between-crime-and-the-economy/#comments</comments>
		<pubDate>Wed, 10 Sep 2008 09:00:30 +0000</pubDate>
		<dc:creator>G.L.C.</dc:creator>
				<category><![CDATA[Citizen Economists]]></category>
		<category><![CDATA[crime]]></category>
		<category><![CDATA[gas prices]]></category>
		<category><![CDATA[Great Depression]]></category>
		<category><![CDATA[illegal immigrants]]></category>
		<category><![CDATA[racism]]></category>

		<guid isPermaLink="false">http://www.amateureconomists.com/blogs/?p=271</guid>
		<description><![CDATA[<p>Crime rates should drop during good economic times and rise during bad ones. So very soon if you are walking the streets of New York late at night, you may be at risk of being mugged by gangs of investment bankers, driven to acts of desperate violence by the travails of the credit markets. <span style="color:#777"> . . . &#8594; Read More: <a href="http://www.citizeneconomists.com/blogs/2008/09/10/is-there-a-correlation-between-crime-and-the-economy/">Is There a Correlation Between Crime and the Economy?</a></span>]]></description>
			<content:encoded><![CDATA[<p>Crime rates should drop during good economic times and rise during bad ones. So very soon if you are walking the streets of New York late at night, you may be at risk of being mugged by gangs of investment bankers, driven to acts of desperate violence by the travails of the credit markets. This seems logical at first glance &#8211; people who lose their jobs may turn instead to burglary and theft to get what they want.  But there is little evidence to suggest that crime rates drop during good economic times and rise during bad ones. Crime rates rose every year between 1955 and 1972, even as the economy surged, with only a brief, mild recession in the early 1960s. A bad economy doesn&#8217;t always bring more crime. Crime rates fell about one third between 1934 and 1938 while the nation was struggling to emerge from the Great Depression and weathering another severe economic downturn in 1937 and 1938.</p>
<p>Declining wages for poor young males drew them to crime as crack ravaged inner cities during the economic boom of the late 1980s. Low wages and the lure of crack profits thus discouraged young men from finding honest work. Economists and criminologists who can refer to data from all 50 U.S. states to help them understand what is going on have found little indication of a strong link between economic growth and crime. They instead credit some of the sharp fall in crime in the U.S. in the 1990s to larger police forces and harsher prison sentences. More stringent laws and larger government expenditures have also played an important role in the fall in the crime rate.</p>
<p>The truth is that broad figures on crime conceal large differences in specific crimes, each with its own particular explanation. Crimes, broadly speaking, have been falling for a decade. Car thefts are down because cars are harder to steal. Modern televisions and other home electronic equipments tend to be either too large to steal or too cheap to bother with.</p>
<p>That should take the focus away from crime. The economic downturn is threatening an increase in crime, illegal immigration, and extremism, putting further strain on tight police budgets. Illegal working is forecast to increase as migrants’ opportunities for legal employment decline and businesses seek to save costs.</p>
<p>Economic downturn also risks increasing the appeal of far right extremism and racism. Experiencing racism can be one of the factors that can lead to people becoming terrorists.</p>
<p>Local police resources could come under increasing pressure. The ever increasing gas prices might leave the police forces facing financial pressures.</p>
<p>So if the war against crime is to be won, then more stringent laws and increased federal, state, and local spending on law enforcement are needed. In other words, crime declines not because the economy is booming but because the government passes stringent laws and spends money &#8211; larger prisons, more police, and tougher punishments.</p>
<div id="tags"><a href="http://technorati.com/tag/politics" rel="tag">politics</a>, <a href="http://technorati.com/tag/news" rel="tag"> news</a>, <a href="http://technorati.com/tag/media" rel="tag"> media</a>, <a href="http://technorati.com/tag/law" rel="tag"> law</a>, <a href="http://technorati.com/tag/culture" rel="tag"> culture</a>, <a href="http://technorati.com/tag/police" rel="tag"> police</a>, <a href="http://technorati.com/tag/religion" rel="tag"> religion</a>, <a href="http://technorati.com/tag/murder" rel="tag"> murder</a>, <a href="http://technorati.com/tag/criminal" rel="tag"> criminal</a>, <a href="http://technorati.com/tag/legal" rel="tag"> legal</a>, <a href="http://technorati.com/tag/crime" rel="tag"> crime</a>, <a href="http://technorati.com/tag/crimonology" rel="tag"> crimonology</a>, <a href="http://technorati.com/tag/crimonologists" rel="tag"> crimonologists</a>, <a href="http://technorati.com/tag/government" rel="tag"> government</a>, <a href="http://technorati.com/tag/business" rel="tag"> business</a>, <a href="http://technorati.com/tag/economy" rel="tag"> economy</a>, <a href="http://technorati.com/tag/american+economy" rel="tag"> american economy</a>, <a href="http://technorati.com/tag/illegal+immigration" rel="tag"> illegal immigration</a>, <a href="http://technorati.com/tag/gas+price" rel="tag"> gas price</a></div>
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		<title>Why Immigration Laws Don&#8217;t Stop Illegal Workers from Entering U.S.</title>
		<link>http://www.citizeneconomists.com/blogs/2008/08/13/why-immigration-laws-dont-stop-illegal-workers-from-entering-us/</link>
		<comments>http://www.citizeneconomists.com/blogs/2008/08/13/why-immigration-laws-dont-stop-illegal-workers-from-entering-us/#comments</comments>
		<pubDate>Wed, 13 Aug 2008 09:00:31 +0000</pubDate>
		<dc:creator>G.L.C.</dc:creator>
				<category><![CDATA[Citizen Economists]]></category>
		<category><![CDATA[foreign workforce]]></category>
		<category><![CDATA[illegal immigrants]]></category>

		<guid isPermaLink="false">http://www.amateureconomists.com/blogs/?p=218</guid>
		<description><![CDATA[<p>Immigrants, both legal and illegal, play an important role in U.S. economy. The topic of immigrants invokes a lot of emotion. Due to their large numbers, which are increasing every day, they are having more of an impact on the economy than ever before. Most people tend to blame crime and loss of jobs <span style="color:#777"> . . . &#8594; Read More: <a href="http://www.citizeneconomists.com/blogs/2008/08/13/why-immigration-laws-dont-stop-illegal-workers-from-entering-us/">Why Immigration Laws Don&#8217;t Stop Illegal Workers from Entering U.S.</a></span>]]></description>
			<content:encoded><![CDATA[<p>Immigrants, both legal and illegal, play an important role in U.S. economy. The topic of immigrants invokes a lot of emotion. Due to their large numbers, which are increasing every day, they are having more of an impact on the economy than ever before. Most people tend to blame crime and loss of jobs on immigrants. The overwhelming argument against immigrants is that they will take work away from native workers at a much lower wage.</p>
<p>An article, &#8220;Immigration: Issues and Perspectives for Businesses,&#8221; by Sarena Davila insists that immigration can be beneficial for the U.S. economy. Immigrants are a source of labor at relatively low cost. The high cost of labor has forced many U.S. companies to move their operations to countries like China and India where the cost of labor is much lower. If labor is available at lower costs, most American companies would continue to operate from here rather than move their operations abroad. If a worker is skilled and meets the requirements of the company at a lower cost, any company will hire that worker. In this era of globalization, American workers must get competitive or they stand to loose. The real concern here should be if the immigrants are paid sub-standard wages on account of their immigrant status. It is important to continue to encourage those who want to come to the U.S. to do so legally and continue to contribute to the economy.</p>
<p>Immigrants often fill undesirable jobs – the jobs American workers do not want to do &#8211; or jobs of American workers who drift into higher paying occupations. This implies there is no loss in jobs as immigrants do not take jobs away from currently employed citizens.</p>
<p>American businesses who hire illegal workers are actually breaking the law because employers who hire illegal workers also violate immigration laws when misled by false documents.</p>
<p>To tackle this problem, a mere legal mechanism to check immigration is not sufficient. Most immigrants come to the United States looking for jobs and end up in less skilled jobs. There is a real shortage of less skilled workers in the United States. Add to that the minimum wage laws. These two factors act as an incentive for U.S. businesses to hire immigrant workers – both legal and illegal. Immigrant workers who want to come and work in the United States will do anything it takes to get here. They want to get here because they know they will get work no matter what their immigration status is – legal or illegal. It’s simple economics. There is demand for such workers. So long as there is a demand, these workers will continue to come to the United States looking for work. Instead of just concentrating on legislation to tackle this issue, the government should address the root of the problem – the demand for such workers. If there is no demand, these workers would look at other countries. But then again the government cannot just put a complete stop to the hiring of immigrant workers. These workers are needed if the U.S. economy is to maintain its competitiveness.</p>
<div id="tags"><a href="http://technorati.com/tag/immigration" rel="tag">immigration</a>, <a href="http://technorati.com/tag/illegal+immigration" rel="tag"> illegal immigration</a>, <a href="http://technorati.com/tag/immigrants" rel="tag"> immigrants</a>, <a href="http://technorati.com/tag/illegal+immigrants" rel="tag"> illegal immigrants</a>, <a href="http://technorati.com/tag/immigrant+workers" rel="tag"> immigrant workers</a>, <a href="http://technorati.com/tag/economy" rel="tag"> economy</a>, <a href="http://technorati.com/tag/economics" rel="tag"> economics</a>, <a href="http://technorati.com/tag/law" rel="tag"> law</a>, <a href="http://technorati.com/tag/legal" rel="tag"> legal</a>, <a href="http://technorati.com/tag/law+and+economics" rel="tag"> law and economics</a>, <a href="http://technorati.com/tag/immigration+laws" rel="tag"> immigration laws</a>, <a href="http://technorati.com/tag/employment" rel="tag"> employment</a>, <a href="http://technorati.com/tag/employment+laws" rel="tag"> employment laws</a>, <a href="http://technorati.com/tag/U.S.+economy" rel="tag"> U.S. economy</a></div>
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		<title>Businesses Join in Fight Against Crackdown on Illegal Immigrants</title>
		<link>http://www.citizeneconomists.com/blogs/2008/07/26/businesses-join-in-fight-against-crackdown-on-illegal-immigrants/</link>
		<comments>http://www.citizeneconomists.com/blogs/2008/07/26/businesses-join-in-fight-against-crackdown-on-illegal-immigrants/#comments</comments>
		<pubDate>Sat, 26 Jul 2008 09:34:29 +0000</pubDate>
		<dc:creator>G.L.C.</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[foreign workforce]]></category>
		<category><![CDATA[illegal immigrants]]></category>

		<guid isPermaLink="false">http://www.amateureconomists.com/blogs/?p=180</guid>
		<description><![CDATA[<p>In December 2007 a federal judge in Oklahoma threw out a lawsuit against a statewide law that forbids hiring illegal immigrants. According to the Greater Oklahoma City Chamber of Commerce, the local businesses now have to deal with the fallout on the economy. It estimates that 20% of the city&#8217;s construction labor force &#8211; <span style="color:#777"> . . . &#8594; Read More: <a href="http://www.citizeneconomists.com/blogs/2008/07/26/businesses-join-in-fight-against-crackdown-on-illegal-immigrants/">Businesses Join in Fight Against Crackdown on Illegal Immigrants</a></span>]]></description>
			<content:encoded><![CDATA[<p>In December 2007 a federal judge in Oklahoma threw out a lawsuit against a statewide law that forbids hiring illegal immigrants. According to the Greater Oklahoma City Chamber of Commerce, the local businesses now have to deal with the fallout on the economy. It estimates that 20% of the city&#8217;s construction labor force &#8211; about 2,000 workers &#8211; left the city in the four months since December 2007. More than 70 businesses closed in the first two months of 2008 because many of their employees left the state.</p>
<p>When the government gets cracking on illegal immigrants, the main opponents of the government action are the human right activists and other immigrant rights associations. Local law enforcement authorities generally crack down on illegal immigrants in their jurisdiction and the businesses that employ them. Business caught hiring undocumented workers generally have their licenses revoked. Now businesses have started resisting the government attempts to crack down on illegal immigrants.</p>
<p>Businesses and the government have benefited handsomely from the present flow of illegal immigrants into the U.S., but they refuse to reimburse local and state authorities and taxpayers for the related costs. Undocumented workers illegally hired by U.S. businesses contribute more than $8 billion to Social Security and $2 billion to Medicare. All Social Security Administration projections and budgets include, and rely heavily on, the billions in annual contributions from undocumented immigrant workers. Social Security would have a significant solvency problem without this revenue.</p>
<p>There is now fierce political pressure from business lobbies, immigrant rights groups, and members of Congress. This has resulted in a steady retreat by the government from workplace enforcement in the 20 years since it became illegal to hire undocumented workers in this country.</p>
<p>Arizona has some of the nation’s most rabidly anti-immigrant politicians and enacted some stringent employer punishments last year. But a business group has succeeded in gathering signatures for a ballot initiative that could soften some of the stringent punishments.</p>
<p>Riverside, New Jersey, is a perfect example of how the crackdown on illegal immigrants has adversely affected local businesses. In July 2006, the Riverside Township Committee unanimously passed the Illegal Immigration Relief Act, which made hiring or renting property to an illegal immigrant punishable by a $2,000 fine and jail time. Since then, town officials estimate, as many as 2,500 immigrants, or nearly one-third of Riverside&#8217;s population, have fled. Downtown merchants and restaurateurs report declines in revenue of as much as 70%. The ordinance was never actually enforced. It was almost immediately tied up in court after 62 Riverside business and property owners filed a lawsuit claiming that the Illegal Immigration Relief Act was unconstitutional and improperly superseded federal authority.</p>
<p>Without the cheap labor of the illegal immigrants, the local economy in many towns and cities would virtually collapse. The irony is that while the nation requires the immigrant’s cheap labor, the nation does not want the immigrant.</p>
<div id="tags"><a href="http://technorati.com/tag/illegal+immigration" rel="tag">illegal immigration</a>, <a href="http://technorati.com/tag/illegal+workers" rel="tag"> illegal workers</a>, <a href="http://technorati.com/tag/immigrant+workers" rel="tag"> immigrant workers</a>, <a href="http://technorati.com/tag/immigrant+workforce" rel="tag"> immigrant workforce</a>, <a href="http://technorati.com/tag/illegal+workforce" rel="tag"> illegal workforce</a>, <a href="http://technorati.com/tag/U.S.+employment" rel="tag"> U.S. employment</a>, <a href="http://technorati.com/tag/U.S.+workers" rel="tag"> U.S. workers</a>, <a href="http://technorati.com/tag/U.S.+workforce" rel="tag"> U.S. workforce</a>, <a href="http://technorati.com/tag/labor+issues" rel="tag"> labor issues</a>, <a href="http://technorati.com/tag/immigration+issues" rel="tag"> immigration issues</a>, <a href="http://technorati.com/tag/cheap+labor" rel="tag"> cheap labor</a>, <a href="http://technorati.com/tag/undocumented+workers" rel="tag"> undocumented workers</a>, <a href="http://technorati.com/tag/current+affairs" rel="tag"> current affairs</a>, <a href="http://technorati.com/tag/news" rel="tag"> news</a>, <a href="http://technorati.com/tag/government" rel="tag"> government</a>, <a href="http://technorati.com/tag/politics" rel="tag"> politics</a>, <a href="http://technorati.com/tag/law+and+economics" rel="tag"> law and economics</a>, <a href="http://technorati.com/tag/economic+analysis+of+law" rel="tag"> economic analysis of law</a>, <a href="http://technorati.com/tag/economics" rel="tag"> economics</a>, <a href="http://technorati.com/tag/economy" rel="tag"> economy</a></div>
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