“Low Cost” Immigrant Labor – Not So Cheap After All

One of the biggest reasons our political leaders and the U.S. Chamber of Commerce support illegal and visa-based (H1B) forms of immigration is that it is purported to keep labor costs low, and fill job positions “Americans won’t do”. A further motivation is to supplement declining native birth rates to provide more taxpayers to cover the entitlements of retiring boomers, and to mitigate the commensurate decline in consumption.

Considering that almost two-thirds of all immigrant households receive some form of welfare (twice the rate as native-born),  “low cost” labor exists only because a significant portion of the true cost is hidden and distributed to the native class workers in the form of higher taxes, increased debt load, and reduced services.

Moreover, if nearly two-thirds of immigrant households require public assistance, then it is unlikely they will be net contributors to the tax base. In addition, any increases in consumption from this cadre are being subsidized by working people who would have either saved that money for their own retirement, or purchased other goods and services.

Welfare and Immigration

Welfare and Immigration

Hence, this means we have very little idea of what net effect illegal and visa-based immigration have on our economy, but we know that the picture is not near as rosy as it has been painted – at best. At worst, it is likely to be a significant net drain on savings, productivity, and the sustainability of our national infrastructure.

Kindly note that the U.S. government statistics presented are from 2014.  I expect that the situation is markedly more negative today than it was 4 years ago.

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