Thursday, June 14, 2007

A Lesson On Supply And Demand and The Illegal Immigrants Labor Pool

How does the large numbers of illegal immigrants affect the labor pool and manual labor wages? It is really quite simple, it dramatically depresses it! If you are an employee that toils in a field where untrained labor can come in and compete for a job, you are making less today than you would if there weren't 20,000,000 or more illegal immigrants in this country! How much less is hard to say, but we can certainly estimate based upon historical employment data and inflation numbers.


Why does the existence of the illegal workers depress the labor wage? It really is simply an end result of supply and demand. The law of supply and demand is quite simple as it states that the more something is in supply and the lower the demand for it the less it will cost. Another affect is that if demand remains consistent or even increases somewhat while supply grows dramatically the cost will drop as well. This is what has happened with labor type jobs here in the United States. The demand for labor jobs overall has increased only slightly as well moved into a service sector economy, but the supply of labor type employees has grown dramatically due to the importation of potential employees (yes these would be the illegal immigrants). To put it into an easy example: let's say that we live on an island where there are only two people that can build houses, there is a demand for 10 houses to be built per year. Well these fellas would be in huge demand and would make a good deal of money as long as the people could afford to pay them. Relatively speaking they would become rich compared to the other island natives. But let's say that suddenly 50 people that could build houses came onto the island and there was still only a demand for the 10 houses to be built in a year. We would then have 52 people fighting over the available amount of business, and would all of them would work much, much cheaper than when there was only the 2 builders. This is exactly what the increase in raw lablor of illegal immigrants has done to labor and semi-skilled labor jobs in the United States. If you are a laborer, or work as a roofer, floor person or painter, you do not need me to tell you this. You have experienced it first hand.

What all of you need to start doing is asking your Congressional and Senatorial Representatives what they are going to do to help you in this situation! Demand for them to stop the flow of cheap labor (the illegal immigrants). Ask then the $64,000.00 question, which is "Where Is The Fence?"

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