Showing posts with label workforce. Show all posts
Showing posts with label workforce. Show all posts

3/09/2007

Illegal Immigration & Capital Spending

A column in the Washington Times recently cited the many negative effects that illegal immigration has on U.S. citizens. Lower wages for all workers due to illegal immigration makes sense from an economics standpoint. When the quantity supplied increases, the price will decrease. Businesses can also be hurt. For example, in the construction industry, companies that do not hire illegal workers are expected to compete with companies who do hire workers for whom they do not face such costs as workers compensation. The most interesting effect cited was one I had never considered. The author claimed that a supply of cheap labor served as a disincentive for companies to invest in technology. Why should a company invest in capital, if they have a large supply of cheap labor? In the long run, this can hurt the entire U.S. economy. This has become a very hot issue lately and the reemergence of white power groups (yes, even in southern Utah) is alarming. However, I think these points would allow a productive discourse to begin.