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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