Illegal immigration = the ultimate outsourcing

Think about it.  The real objection to companies shifting jobs to other countries isn’t the location of the jobs, it is the move from U.S. citizens*  to non-U.S. citizens.  If the jobs went overseas to U.S. citizens I doubt people would object.

So what happens with illegal immigration?  Non-U.S. citizens take the jobs of U.S. citizens and consume far more resources than they contribute.  At least the Indian guy on the support desk isn’t demanding that you fund the medical and education costs for him and his family, and he isn’t committing crimes in this country.

The great irony is that open border Leftists like Jim “the Gospel is all about wealth redistribution” Wallis are the ones who claim to care about the poor.  But the illegal immigrants drive down the wages of the poor in this country and take many of their jobs.  What kind of “social justice” is that?

If anyone objects to outsourcing of U.S. jobs – and most people seem to — do a consistency check and ask them their views on illegal immigration.  Be sure to gently point out any inconsistencies.

*or guests in the U.S. — i.e., people who have the proper immigration approvals

0 thoughts on “Illegal immigration = the ultimate outsourcing”

  1. I’m not so sure about this, Neil, and it has nothing to do with my views on immigration, illegal or otherwise. When a large corporation leaves, it affects the economy of the whole region. We’ve seen this all too often recently here in Ireland, a good example being when Dell moved its manufacturing plant from Limerick to Poland, it was more than just the Dell jobs that were lost. Many others lost their jobs in service industries in the same area.

    Corporations will relocate if they can significantly lower their cost base. Here, it is high wages and property costs that are driving companies away, despite one of the lowest corporate tax rates in Europe. We have also had more or less the same people in government since 1997, with no changes in govt policy toward business. So when a corporation leaves Ireland, they’re usually honest enough to give the real reasons – you want too much money and the Poles, Czechs, Indians and Chinese will work for peanuts. Of course they don’t put it quite like that. I’m sure that elsewhere shrewd management will use any popular excuse that they have to hand; well gosh we really don’t want to leave but this new government, don’t you know, tut tut with much hand wringing.

    One of the factors that drove the boom in Ireland, before we became, to an extent, victims of our own success, was the opening of the labour market to the ten new EU accession states in 2005. Almost overnight, the population increased by about 10 percent. The “new Irish” were prepared to work for less, and yes, they began doing the jobs that the rest didn’t want. Now, they are all heading home, because it’s their countries that are beginning to experience growth.

    I do think one can argue consistently against outsourcing, while advocating the availability of cheap, immigrant labour. The legality thereof is something you need to work out; I would not be in favour of what you have described as “open borders” but a more open labour market between you and your neighbouring states makes good economic sense.

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  2. Boo,
    I probably misunderstand, but it sounds like you are saying you are far enough up the ladder to benefit from having the top end of the business remain. So just throw those on the low end to the wolves.
    I do sort of see your point, but where do you draw the line.

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  3. Racing Boo,

    The problem is in how gov’t sees the purpose of any given business. It is NOT to employ, though they do. It is NOT to benefit surrounding towns or to enhance other peripheral businesses, both of which a business will also do. The purpose of any given business is to generate profits by providing a better product or service at a better price. When gov’t develops policy that does not take this basic fact into account, the business will react accordingly. If said policy is burdensome to the business, it will leave for a more favorable environment.

    This is true of any individual as well. Make it hard for a person to earn his buck, and he will react accordingly. Why would a business, operated by people, do any different? It seems both our countries have found ways to chase away corporations. Either through regulation or tax policies, our producers have decided that it is just too expensive to run their operations in our countries. That’s called good business sense and they’ve done what is best for their companies. When the gov’t, and people on the left, get over this notion that big corporations exist to benefit anyone other than themselves and their customers, perhaps policy will change in a manner that attracts business rather than chases it away.

    Neil’s point is well taken. Illegal immigration is oursourcing in reverse—insourcing, if you will. Business is doing what it does, generating profits with at the least possible expense. Both are seen as a negative, but the outsourcing is at least ethical in the sense that the business is not doing anything illegal by setting up shop in a foreign country. It is really no different in impact on our country than if the company didn’t ever exist here in the first place, except for those who did exist, left, and in their wake remain all those who used to have jobs.

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  4. “But the illegal immigrants drive down the wages of the poor in this country and take many of their jobs.”

    This may be true, but how much do they drive down wages and how many jobs do they take? Ottaviano and Peri’s findings (http://www.econ.ucdavis.edu/faculty/gperi/Papers/OP_april_2010.pdf) suggest that immigration has little effect on natives with low education and a small positive effect on native wages overall.

    Admittedly their work is focused on legal immigration, but there’s no reason to think that illegal immigration has substantially different effects. So what’s your reason for thinking that illegal immigration has such a large effect?

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  5. Racing Boo: I’m not sure what the immigration story is over in Europe, but here, we have over 10 million poorly-educated, young illegal immigrants who drive down wages for every blue-collar job out there.

    Here, we can’t walk into a take-out restaurant, hire a landscaper, or get someone to do work on the house without running into an illegal. When the numbers are smaller, the issues are smaller and the problems are smaller. It’s ubiquitous over here and horribly damaging for the millions of people without any job who are not above landscaping a yard for a few bucks in their pockets.

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  6. I’m not in favour of illegal immigration. I would not support anything which has the end result of “a race to the bottom” where wages are concerned, and decreases the bargaining power of labour. When I said “the availability of cheap, immigrant labour” I wasn’t advocating slavery.

    Marshall, of course we need sensible, business-friendly economic policies. But Obama could be possessed by the ghost of Reagan tomorrow and the jobs would still be leaving. Why? Because the neoliberal economic program that has become enmeshed in our way of thinking incentivises CEOs to maximise profits and share prices in the short term, they are rewarded for getting the share price to spike even for a day. This also means mergers and acquisitions where corporations are buying the profitability they can no longer achieve through trading, which further increases the debt burden and raises interest rates, slowing economic growth. So corporations are forking out profits (that are badly needed to for long term investment and innovation) to financial markets, and then have to compete in destructively competitive markets to try to get it back.

    Long-term stable employment and wage levels are not possible under this economic agenda.

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