Anyone who tells you illegal immigrants working in the United States is a good thing, isn’t telling you the truth.
The Gateway Pundit reports – The Trump administration has notified more than 500,000 employers that some of their employees’ names do not match their reported Social Security numbers in a new move to crack down on illegal aliens.
The move is reminiscent of Ronald Reagan, who in 1986 signed into law the Immigration Reform and Control Act that put the onus on employers by making the act of knowingly hiring undocumented people a criminal offense.
Since March, the Social Security Administration has mailed out “no-match letters” to more than 570,000 employers, telling them of the mismatched information on their employers.
In 2016, there were nearly 8 million illegal aliens in the U.S. labor force, the Pew Research Center reported. But in 2012, during Barack Obama’s time in the White House, the government officially stopped sending out “no-match letters.”
Harvard professor of economics, author of “We Wanted Workers: Unraveling the Immigration Narrative,” George Borjas explains how illegal immigrants working in the United States hurts the American worker. He also describes how illegal immigrants who are working in the U.S. actually cost the American taxpayer more money. In a Politico article, “Yes, immigration Hurts American Workers,” Borjas claims anyone who tells you that immigration doesn’t have any negative effects doesn’t understand how it really works. When the supply of workers goes up, the price that firms have to pay to hire workers goes down. Wage trends over the past half-century suggest that a 10 percent increase in the number of workers with a particular set of skills probably lowers the wage of that group by at least 3 percent. Even after the economy has fully adjusted, those skill groups that received the most immigrants will still offer lower pay relative to those that received fewer immigrants.
Both low- and high-skilled natives are affected by the influx of immigrants. But because a disproportionate percentage of immigrants have few skills, it is low-skilled American workers, including many blacks and Hispanics, who have suffered most from this wage dip. The monetary loss is sizable. The typical high school dropout earns about $25,000 annually. According to census data, immigrants admitted in the past two decades lacking a high school diploma have increased the size of the low-skilled workforce by roughly 25 percent. As a result, the earnings of this particularly vulnerable group dropped by between $800 and $1,500 each year.
We don’t need to rely on complex statistical calculations to see the harm being done to some workers. Simply look at how employers have reacted. A decade ago, Crider Inc., a chicken processing plant in Georgia, was raided by immigration agents, and 75 percent of its workforce vanished over a single weekend. Shortly after, Crider placed an ad in the local newspaper announcing job openings at higher wages. Similarly, the flood of recent news reports on abuse of the H-1B visa program shows that firms will quickly dismiss their current tech workforce when they find cheaper immigrant workers.
But that’s only one side of the story. Somebody’s lower wage is always somebody else’s higher profit. In this case, immigration redistributes wealth from those who compete with immigrants to those who use immigrants—from the employee to the employer. And the additional profits are so large that the economic pie accruing to all natives actually grows. I estimate the current “immigration surplus”—the net increase in the total wealth of the native population—to be about$50 billion annually. But behind that calculation is a much larger shift from one group of Americans to another: The total wealth redistribution from the native losers to the native winners is enormous, roughly a half-trillion dollars a year. Immigrants, too, gain substantially; their total earnings far exceed what their income would have been had they not migrated.
When we look at the overall value of immigration, there’s one more complicating factor: Immigrants receive government assistance at higher rates than natives. The higher cost of all the services provided to immigrants and the lower taxes they pay (because they have lower earnings) inevitably implies that on a year-to-year basis immigration creates a fiscal hole of at least $50 billion—a burden that falls on the native population.