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Illegal Immigration: A Growing Problem or a Helpful Hand???

Illegal Immigration

Illegal immigration, a growing problem or a helpful hand?  As of 2008, the U.S. is estimated to have around sixteen million illegal aliens comprising roughly 5% of the population.  Over the past few years, this has been a very controversial issue both within Congress and society at large.  The term ‘illegal immigrants’ is most commonly used to refer to immigrants from Mexico, Central, and South America who sneak across the border in the hope of a better life.  They aspire to the American dream where they hope for a better lifestyle and more income to support their extended families back home.  Many come, not just because of America’s economic appeal, but also to escape abject poverty, unemployment, and oppression.  Proponents of amnesty for illegal immigrants ask how can we deny them access to the American dream and our principles of universal liberty.  They argue it’s a matter of compassion and enabling more diversity.  Opponents argue that the cost burdens are devastating, that we must follow the rule of law and cannot be selective about which laws we choose to enforce.  They ask, at what point do we say stop?

Although many Americans still don’t consider illegal employment a serious offense, its economic impact has elevated this issue to the national stage.  An objective analysis weighing the benefits against the true costs may likely show that illegal immigrants constitute a net drain on the U.S. economy – although a definitive analysis or conclusion remains elusive.

The negative impact of illegal immigrants and their drain on the U.S. economy is significant.  U.S. News & World Report recently reported in November, 2008 that the U.S. Federal Government’s annual expenditure for aid to illegal immigrants totaled twenty-two billion dollars for welfare, two billion on food assistance programs, and two and a half billion on Medicaid.  According to proceedings from a 1997 meeting of the House Judiciary Subcommittee on Immigration and Claims, “Through other violations of our immigration laws, Mexican drug cartels are able to extend their command and control into the United States. Drug smuggling fosters, subsidizes, and is dependent upon continued illegal immigration and alien smuggling.”  These drug cartels account for 80% of the supply of methamphetamines in the U.S.  Furthermore, additional hazardous effects include illegal drunk drivers and murderous illegal aliens who have claimed over nine thousand American citizens’ lives in just the last year alone; plus, criminal gang activity has ballooned as a result of the influx of illegals.  According to the Los Angeles Times, 60% of Mexican gang members in Los Angeles are illegal immigrants.  Are these really the kind of individuals or refugees we should be allowing to immigrate into our country?

The above-mentioned issues do not even begin to quantify the huge negative impact of illegal aliens on a whole host of social services and the associated hidden costs.  This has created a crisis of unprecedented proportions in our social institutions, especially schools and medical facilities.  They have contributed to an erosion in the quality of education by straining the coffers and resources of local school districts.  Medical emergency rooms are closing all over the country, having been bankrupted by the huge influx of illegal aliens who are unable or unwilling to pay for services.  They drive on public roads, send their children to public schools and engage in a host of activities, all of which drain social service coffers and cost the government money.  Many doubt that whatever taxes illegals may pay in the form of sales or unclaimed social security benefits can begin to cover the net drain they incur on social services.

On the other side of the equation, it is clear that illegal immigrants also bring some benefits to American society.  Advocates for illegal immigration claim that illegals keep the economy growing by filling low-wage jobs many Americans won’t do.  The Wall Street Journal reported in 2005 that illegal immigration is positive to our economy and that they generate a net economic benefit.  The Journal reported that, in a $13 trillion economy, illegal immigrant accounted for about 1% of total economic activity, which would mean that they would contribute about $13 billion.  Also, they make contributions toward social security that often go unclaimed, pay sales taxes, and keep the real estate market propped up in remote areas where renters are hard to find.  George Borjas, Professor of Economics and Social Policy at Harvard University, contends that illegal immigration has a more beneficial impact on the middle and upper classes, yet hurts the lower class because it takes away jobs.   Granted, this is only one study, but Borjas claims African Americans are hurt the most since they lose jobs that are filled by illegal aliens.

This raises the question as to whether the U.S. economy truly needs illegal immigrants to fill jobs Americans won’t do and whether we are doing more harm to our society by allowing an influx of illegal cheap labor to take away jobs from the poor.  With unemployment at 6.1%, a seven-year high, would American citizens perhaps consider taking all these lower wage jobs?  Illegals take $18.1 billion a year in wages away from America citizens.  In order to determine if illegal immigrants are beneficial to the overall economy, one must balance the total taxes they pay and labor savings they provide against the real total cost and opportunity cost of all the services they consume as well as economic losses derived from their associated criminal activity.  Unfortunately, there is no definitive answer and a comprehensive objective analysis remains elusive.

Large corporations and the agricultural industry are the primary advocates for doing nothing about illegal immigration and the resultant stalemate.  This is because they are huge beneficiaries of cheap illegal labor that in turn ensures their continued positive profit margins.  It is a truly propitious scenario for employers:  depressed labor costs, an abundant supply of workers who don’t demand benefits, and the avoidance of unions and labor laws.  Huge windfall profits by companies exploiting illegal laborers have resulted in outspoken officials such as Tennessee Senator, Bill Frist and Arizona Governor, Jane Napolitano stepping up and pushing for corporations to be held accountable for their actions.  For example, Wal-Mart paid $11 million in 2005 to settle a federal investigation that found hundreds of illegal immigrants hired by Wal-Mart’s cleaning contractors.  The largest crackdown in U.S. history occurred in 2006 at Swift meat processing plants when the federal government raided their plants and arrested 1,300 illegal immigrant employees.  The problem is that not enough advocates are taking on corporations.  Most recently, Democrat Harry Reid decided to cripple his party’s ability to vote on several amendments that would help legalize illegal immigration and alleviate the burden of illegal immigrants on taxpayers.  This type of stubbornness in Congress is indicative of the mentality that pervades the entire government resulting in almost no progress while the corporate and agricultural sectors continue to reap the benefits.

It’s important to understand the underlying causes of America’s illegal immigration problem.  Mexico, Central and South America are in a state of economic and/or social disarray and immigrants flee not only economic hardship but also civil war, repression, religious persecution, genocide, and dictatorships.  U.S. groups have accused Mexico of collaborating to facilitate even more illegal immigration into the U.S.  For example, over the past several years, Mexico has produced over 70,000 maps marking roads and water tanks for people illegally crossing the border.   However, according to Mauricio Farah of Mexico’s Human Right Commission, “The only thing we are trying to do is warn them of the risks they face and where to get water, so they don’t die.”  Other cases have been found in the Yucatan State of Mexico, where the government produced educational materials on how to stay under the radar once in America, including tips for finding free health care, enrolling children in school, and how to send money home.  Ira Mehlman of the Federation for American Immigration Reform says, “This is really the way they keep their corrupt system afloat, by sending their excess workers to the United States and getting billions of dollars in remittances every year… so, for them, this is a worthwhile investment.”

A primary cause has been the broad-based failure of the Mexican government to fulfill commitments to its own citizens as well as to the United States.  Mexico promised to invest billions in roads, schooling, sanitation, housing, and other infrastructure to support border factories, which would manufacture goods for America.  This plan was part of the North American Free Trade Agreement and was intended as a way to reduce illegal immigration and help the Mexican economy.  Instead, China was able to out-flank Mexico in terms of manufacturing goods import into the U.S.  With such a corrupt government, it is unclear whether Mexico will ever be able to revive its economy sufficiently and offer its people the opportunities similar to those they receive in America.  As a result, millions of immigrants continue to cross the borders and this number will only continue to grow annually.  The Pew Research Center reported that, at current rates, it is projected that by 2050 white American citizens will become a minority and the Hispanic population will become the majority, with two thirds coming directly from illegal immigration.  Eventually, all sides will have to come together and agree on a comprehensive solution that will be able to benefit all.

The U.S. Federal Government has been unable to commit to any form of comprehensive prevention measure that will halt illegal immigration.  If the government continues to offer free benefits, it is human nature for people to take advantage of them.  Compounding the issue are cities such as San Francisco or New York that promote themselves as ‘sanctuary cities’ providing safe haven and a multitude of no-strings benefits for illegal aliens.  Practical solutions must eventually be developed to address this conundrum.  One controversial issue is the Mexican-U.S. Border fence.  In 2006 Congress authorized partial funding mandating the construction of 700 miles of fences and barriers along the border.  The fence will be composed of three staggered walls, guard posts, radar sensors, and active working guards at a total cost of $1.3 billion dollars.  But will it really provide the solution?

Other advocates say the U.S. must remove the magnet that attracts illegals and propose that, if you dry up the source of the problem and eliminate the free benefits, the flow of illegal immigrants will be drastically reduced.  They argue that, by removing the core attraction, a significant proportion of illegals would eventually leave the country by attrition.  This would directly target corporations that supply jobs and would go a long way toward removing the magnet.  Putting stricter restrictions on these companies and making it a felony to hire illegals would create a strong incentive for immigrants to apply for citizenship.  Eliminating free benefits for illegals will send many of them back home once life in the U.S. becomes much more difficult.  Those who choose to gain citizenship through proper, legal channels will be granted all the freedoms and benefits that are granted to legal residents and U.S. citizens.  This raises another major component that many people believe must be addressed as part of a comprehensive immigration policy:  a practical guest worker program.  It’s not enough to simply enforce the borders or dry up the magnet of illegal corporate/agricultural employment.  These must go hand-in-hand with a fair and efficient guest worker program that still results in providing the immigrant labor resources needed while allowing them to pay their fair share of taxes, receive rightful benefits and to travel home as dictated by seasonal employment and personal family needs.

Unfortunately, the problem is multi-faceted and the solution will require a comprehensive approach.  It will be very difficult if not impossible to find a solution that pleases everyone.  Any viable solution will require addressing as many interests as possible, but must ultimately follow the rule of law and be in the best interests of the largest number of American Citizens.  So should our compassion outweigh legal justice?

Considering all the pros and cons of illegal immigration, does the end really justify the means?  What will happen to our society if millions of illegals are allowed to continue to colonize America?  Will such a transformation benefit society as a whole or lead to continued polarization and social degradation?

Illegal Immigration: A Looming Crisis or Economic Necessity?

Illegal immigration: a looming crisis or economic necessity?  This perennial controversy continues to drive a wedge between factions in both Congress and American society.  A key factor is whether the United States should allow its borders to remain relatively porous and also continue public funding to provide social services to illegal immigrants.  Illegal immigrants originate primarily in Central and South America, driven by aspirations for a better lifestyle and income to support extended families back home.  They are in pursuit of the American dream and economic opportunity that is irresistible compared to the poverty, unemployment and oppression in their native countries.  Proponents of open borders frame it as a matter of universal human rights and compassion.  They insist American principles of ‘life, liberty and the pursuit of happiness’ are universal and dictate that we must not deny anyone who seeks to improve their lot in life, irrespective of legal status.  They also assert that illegal immigrants fill jobs Americans are not willing to do and make a positive contribution to the economy.  Opponents of open borders argue for aggressive policies to severely restrict illegal immigration.  They contend unhindered immigration is no longer practical in an over-populated world and increasingly limited resources.  They further argue that a true cost accounting of the total social costs incurred by illegal immigrants reveals a huge net economic drain that can no longer be sustained.  Left unchecked, this burden will become an albatross on the back of America’s already overburdened economy, not to mention the creation of what some view as unintended and profound social upheaval.

There is no absolute right or wrong in this debate and a significant faction of society will begrudge whichever direction evolves.  It is clear that a solid majority of the American populace support the enforcement of our existing immigration laws.  Fundamentally, it boils down to a debate between somewhat idealistic, compassionate human rights advocates versus a more dispassionate, practical-minded, rule of law approach.  After in-depth research and careful analysis, it would seem that the most fair-minded, logical and practical approach is for the U.S. to ultimately place the interests of its own citizens first and follow the rule of law by enforcing existing laws prohibiting illegal immigration.  American society cannot be selective on choosing which laws to enforce.  If a law is viewed as unjust or unpopular, the U.S. Constitution clearly allows for change; but, unless or until that occurs, existing immigration laws must be enforced.

It must also be reiterated that the debate is really not about immigration per se.  It is reasonable to assume that a vast majority of Americans are not opposed to systematic, controlled immigration.  Rather, the crucial element surrounding the entire issue is the illegal aspect of illegal immigration.  Advocates of illegal immigration when presenting their case to the public often overlook this key point.

As mentioned above, there are two sides of every issue.  Despite all the negative arguments leveled against illegal immigration, there is no doubt the U.S. derives some benefits — most notably in the form of cheap labor.  Advocates for illegal immigration claim that illegals keep the economy growing by filling low-wage jobs many Americans won’t do.  The Wall Street Journal reported in 2005 that illegal immigration is positive for our economy and they generate a net economic benefit.  In a $13 trillion economy, illegal immigrants accounted for about 1% of total economic activity, which would mean they contribute about $13 billion. (wsj.com)  Illegals also contribute towards social security that is often unclaimed.  They pay sales tax and keep real estate markets propped up in remote areas where renters are difficult to find.  However, despite these arguments the economic benefits do not outweigh the net drain that illegal immigrants impose on the American economy and American citizens in the form of lost jobs and huge social costs.

The U.S. population is currently comprised of roughly 5% illegal immigrants and this number is expected to grow dramatically.  The Pew Research Center projects that, by 2050, Caucasians will become a minority in the U.S. and Hispanics will comprise the majority, with two thirds of this growth deriving from illegal immigration. (pewhispanic.org).  Some economists maintain that this would decimate the American economy.  Illegal immigration will continue to have huge economic ramifications on our society.  U.S. News & World Report reported in November, 2008 that the U.S. Federal Government’s annual expenditure for aid to illegal immigrants totaled twenty-two billion dollars for welfare, two billion on food assistance programs, and two and a half billion dollars for Medicaid. (usnews.com)  The financial impact will only continue to grow almost exponentially as the projected wave of huge numbers of illegal immigrants continues unabated.  Although the current economic crisis may result in a temporary slow down, it will not deter the growth of illegal migration over the longer term because the U.S. economy is expected to remain relatively stronger than the economies of Mexico and Central America who suffer from systematic dysfunction.  Therefore, the incentive in those countries to find greener pastures will not go away any time soon.  This begs the imponderable question of where it all leads and when might the U.S. Government and/or state and local regulatory bodies finally be forced to take decisive action to halt illegal, uncontrolled immigration.

The above-mentioned fiscal impacts do not factor in the significant negative impact that certain factions of illegal aliens have on society as a whole.  Illegal aliens are a major component in the growing plague of gang-related warfare and drug trafficking.  This is not to say that illegal criminals are the sole cause, but their continued presence will accelerate the problem in a significant way.  According to proceedings from a 1997 meeting of the House Judiciary Subcommittee on Immigration and Claims, “Through other violations of our immigration laws, Mexican drug cartels are able to extend their command and control into the United States.  Drug smuggling fosters, subsidizes, and is dependent upon continued illegal immigration and alien smuggling.”  In fact, these drug cartels account for 80% of the supply of methamphetamines in the U.S.  Many of these drugs are being handled and trafficked through gangs, which have recently grown substantially due to the influx of illegals.  This number is shocking and many American citizens are confused as to why Congress hasn’t initiated any effective countermeasures.  The trafficking of drugs, culture of gangs is emboldened as their memberships swell from the continuous flow of illegal immigrants.  According to the Los Angeles Times, 60% of Mexican gang members in Los Angeles are illegal immigrants.  These gangs have become intertwined within schools throughout California, Arizona, and other border states.  They have wreaked havoc on the educational environment, impeding students’ ability to learn and creating an almost siege mentality by threatening the safety of every student, teacher or administrator.  In many cases these unruly immigrants are simply transferring antisocial behavior ingrained while growing up in poverty-stricken environments where fighting and petty theft was often the norm.  An additional threat from our porous borders is the increased likelihood of terrorist infiltration, making border control a national security issue.  Should the U.S. be so lax in screening immigrants and refugees and could it not do a far more effective job at filtering out criminal elements?

The most overlooked and misrepresented aspect of illegal immigration is its impact is socials services and associated hidden costs, especially on local governing bodies.  This has created a crisis of unprecedented proportion in our social institutions, especially schools and medical facilities.  As mentioned above, illegals have contributed significantly to the erosion in the quality of education, especially in Border States such as California and Arizona, by straining the coffers and resources of local school districts.  Medical emergency rooms are closing all over the country, having been bankrupted by the huge influx of illegal aliens who are unable or unwilling to pay for the services.  Illegals benefit from taxpayer-provided infrastructure in that they use public roads and transport, send children to public schools, receive welfare and engage in a host of activities, all of which drain social services and the government coffers.  The difference is that U.S. citizens and green card holders pay the full gamut of taxes that fund our social infrastructure.

Many advocate that the American economy could not function without a readily available, inexpensive immigrant labor pool.  However, no one has yet made an objective, comprehensive or decisive analysis substantiating this claim.  It is equally plausible that illegal immigration has cost Americans millions of jobs and significantly lowered the market rate for labor.  While cheap labor has obvious benefits, once the total economic and social costs are factored in, it is highly unlikely that the equation can be favorable to U.S. taxpayers.  With America in a severe recession, it can no longer remain indecisive on this issue.  With unemployment approaching the 7-10% range and the auto industry on the verge of bankruptcy, many researchers believe Americans are now far more willing to take lower wage jobs.  In 2007, the Wall Street Journal reported that illegals took $18.1 billion a year in wages away from American citizens. (wsj.com) With no income tax being paid, this has huge ramifications for government spending.  In California, illegals often deprive needy students from getting lower wage summer jobs.  The tradition of youth gaining real-life work experience via part-time or summer jobs has been significantly curtailed by the influx of illegal immigrants.  It is fallacious to assume that no Americans will ever perform low-paying or manual labor jobs.  The laws of the free market dictate that any labor vacuum will eventually fill these jobs, albeit at perhaps a higher cost.  After all, who worked coal mines a century ago, well before the availability of cheap labor from Mexico and South America?

Granted, these immigrants emigrate from countries in a state of economic and social disarray and they are often fleeing civil war, repression, religious persecution, genocide, or dictatorships.  However, even the U.S. super power has very real limitations in its ability to absorb refugees and/or fund every tragic situation around the world.  Compassion must be rooted in economic reality.  The U.S. is indebted to China for trillions of dollars and can no longer justify paying for non-American citizens no matter how dire their situation may be.

A fundamental problem in curtailing illegal immigration lies with the ineffective enforcement on employers, especially large corporations and the agricultural sector that are the primary beneficiaries of cheap illegal labor to ensure continued positive profit margins.  It is a truly propitious scenario for employers:  depressed labor costs, an abundant supply of workers who don’t demand benefits, and the avoidance of unions and labor laws.  Unfortunately, it is affecting everyone else’s paycheck with higher taxes and dwindling resources.  These huge windfall profits by companies exploiting illegal laborers have resulted in outspoken officials such as Tennessee Senator, Bill Frist, and newly appointed Homeland Security Director, Jane Napolitano, stepping up and pushing for corporations to be held accountable for their actions. For example, Wal-Mart paid $11 million in 2005 to settle a federal investigation that found hundreds of illegal immigrants hired by Wal-Mart’s cleaning contractors.  The largest crackdown in U.S. history occurred in 2006 at Swift meat processing plants when the federal government raided their plants and arrested 1,300 illegal immigrant employees.  The problem is that not enough advocates are willing to take on corporations.  Most recently, Democrat Harry Reid decided to cripple his party’s ability to vote on several amendments that would help legalize illegal immigration and alleviate the burden of illegal immigrants on taxpayers.  This type of stubbornness in Congress is indicative of the mentality that pervades the entire government, resulting in almost no progress while the corporate and agricultural sectors continue to reap the benefits and American taxpayers ultimately pay the consequences.  Polls clearly show that the majority of the American populace wants change; yet, unfortunately, the government has been unwilling to support comprehensive reform.

The U.S. Federal Government has been unable and/or unwilling to commit to any form of comprehensive prevention measures that will halt illegal immigration.  If the government continues to offer free social benefits to illegals, it is only human nature for people to take advantage of them.  Advocates of immigration reform say the U.S. must remove the magnet that attracts illegals.  They propose that, if you dry up the source of the problem by cracking down hard on those who knowingly employ illegals and eliminate free social benefits, then the flow of illegal immigrants will be drastically reduced.  They argue that, by removing the core attraction, a significant proportion of illegals would eventually leave the country over time by natural attrition and that the whole argument about what to do about the millions of illegals already here is really just a red herring.  Certainly, this would force some illegals into a black market existence, but the total net reduction across the country would almost certainly make it worthwhile.  Eliminating free social benefits for illegals will also result in many returning back home once living an illegal existence in the U.S. becomes much more difficult.  Enforcing existing laws and imposing stricter restrictions by making it a felony to hire illegals would quickly remove the magnet attracting illegal immigrants.  Immigration policy must implement existing tamper-proof biometric identity verification technology such as E-Verify and enable data base comparisons across multiple regulatory bodies.  Perhaps most importantly, putting a few high-profile CEOs in prison on felony charges would send a strong signal to all parties that the U.S. is serious about immigration reform.

Those who choose to gain citizenship through proper, legal channels will be granted all the freedoms and benefits that are granted to legal residents and U.S. citizens.  This raises another major component that many people believe must be addressed as part of a comprehensive immigration policy:  a practical guest worker program.  There is no doubt that the U.S. economy, especially agriculture, can benefit from a ready source of immigrant labor just so long as it’s done in a controlled, systematic manner.  It’s not enough to simply enforce the borders or dry up the magnet of illegal corporate and agricultural employment.  These must go hand-in-hand with a fair and efficient guest worker program that still results in providing the immigrant labor resources needed while allowing them to pay their fair share of taxes, receive rightful benefits and to easily travel home as dictated by seasonal employment and personal family needs.  The models for successful guest worker programs already exist in places like Australia, with Indonesian immigrant, and Germany, Turkish immigrants.

The illegal immigration issue in the U.S. is complex, but it can indeed be resolved in a fair-handed manner that addresses most everyone’s concerns.  However, this will require compromise and sacrifice and, most importantly, a grass-roots movement among American voters to pressure both the government and corporate sectors to finally invoke the law and implement real change.  The challenge is multi-faceted and the solution will require a comprehensive approach.  Any comprehensive immigration policy must address three basic areas in tandem:  1) Close the borders; 2) Enforce/strengthen laws making employment of illegals a felony, including hard prison time for CEOs who are found guilty; and 3) implement a viable guest worker program that allows for the free flow of labor resources in a systematic, controlled manner.

Ultimately, the U.S. Government must follow the rule of law and serve the best interests of the majority of American citizens.  An ideologue mentality and utopian compassion cannot be allowed to overwhelm the rule of law and the very real economic threat to the U.S. which will result if nothing is done.  Considering all the pros and cons of illegal immigration, we can no longer justify the means.  What will happen to our society if millions of illegals are allowed to continue to colonize America without paying their fair share?  The majority of intellectuals on this issue agree that such a transformation would lead to continued polarization and social degradation.  The only viable solution is for the U.S. to adopt an effective comprehensive immigration reform that incentivizes immigrants to seek U.S. citizenship or some form of alternative legal status.  If the U.S. wants to perpetuate it ideals of life, liberty, and happiness it must finally take a clear stand on effective immigration reform.

The High Cost of Cheap Labor

In “The High Cost of Cheap Labor,” Steven Camarota, Director of Research for the Center of Immigration Studies in Washington, D.C. discusses illegal immigration’s total impact on the U.S. and, in particular, it’s negative impact on the federal budget. He is renowned for testifying in Congress and is widely published on the subject of the political impact and economic cost that illegal immigration is extracting on the United States. He is a persuasive advocate for this issue and wrote this article to engender the support of the American People for his position. This article analyzes both the direct and indirect costs illegal immigration has imposed on the local and federal levels.

Illegal immigration has been brought to the national stage over the past decade due to the vast influx of illegal immigrants and, as Camarota contends, their net drain on the U.S. economy. Camarota makes a compelling and passionate argument, supported by numerous facts, that illegal immigrants consume far more resources, welfare, Medicare, and federal aid than they produce for the economy and are therefore a huge net fiscal drain on our society.

Steven Camarota maintains that many preconceived notions about the so-called positive fiscal impact of illegal households turn out to be incorrect when examined more closely. He supports this position using a myriad of charts and facts to refute what he believes are generally accepted myths that over inflate the economic contribution of illegal immigrants. Camarota’s goal in this article is to persuade readers to adopt his compelling views on how the government should deal with the controversial issue of illegal immigration. The article is very fact driven and he supports each claim; however, his biased view does come into play throughout the article. His objective is to make the reader aware of the enormous fiscal drain and to become an advocate for his proposed solution. Based on his extensive life experience with this topic, Caramota is adept at pointing out specific problems and issues in a compelling manner. One of his key points is that illegal immigrants incur enormous hidden social costs. For example he states, “The U.S. pays illegal immigrants around $2.5 billion a year in Medicaid, $2.2 billion in food assistance programs, and they incur costs of $3 billion in the form of other federal aid, federal prisons, and the court system.” Camarota begins his article by pointing out in no uncertain terms the very negative consequences of illegal immigration. At its conclusion, he does a deft job of expanding on his premise and informing the reader as to what he believes is the true extent of the problem.

Camarota proposes an immediate, short-term solution whereby amnesty would be granted to all illegal immigrants. He explains, “Our estimates show that amnesty would significantly increase tax per household revenue by 77% ($3,200); however, it would still not offset the $8,200 per household of benefits they receive.” In Camarota’s opinion, this short-term solution would grant them citizenship, afford them the right to work in the U.S. legally and send money back home as well as paying more in taxes and abiding by the rule of law. While not the ultimate solution, he believes this amnesty approach would provide some immediate economic relief and would help create a more constructive path toward a more comprehensive, long-term solution.

Camarota concludes the article by also offering a straightforward longer-term solution: close the borders and enforce the law. He states, “If we are serious about avoiding the fiscal costs of illegal immigration, the only real option is to enforce the law and reduce the number of illegal aliens in the country.”  He explains that the government needs to be more proactive by enforcing existing laws. He further contends that, if illegal immigration growth continues unchecked, the U.S. will soon become unable to support its future population.

Upon reflection, I tend to agree with Camarota’s premise and his proposals. He wants the government to act more quickly by granting an immediate amnesty to all illegals thereby making them citizens and resulting in their paying more taxes. He supports these arguments based on the net benefits that will accrue to the country and also, of course, the assumption that his facts are correct. He also makes a plausible case for a long-term albeit controversial solution that entails closing the borders and enforcing existing immigration laws.

In my assessment, Camarota would be very satisfied with this article. He presents strong factual support in a very persuasive manner and will likely shift many readers’ opinions on the illegal immigration dilemma. The strengths of this article lie in Camarota’s ability to support his premise that illegals are a huge liability and that we are paying a very high cost for cheap labor.

If there is a weakness or shortcoming in Camarota’s article, it is his unwillingness to acknowledge or present a balanced view for the other side of the argument. He includes numerous examples illustrating how illegal immigrants have had a negative fiscal impact on our country, but never balances this argument by listing any of the positive contributions they make. Such a biased approach may serve to reinforce the views of a reader who already shares Camarota’s position. A more critical objective reader would benefit from a more balanced presentation of the facts. Omitting the contra-facts can serve to weaken the argument and Camarota would achieve greater credibility with a more objective discussion to persuade the reader based on the factual merits of his position. He has clearly done his research with punctual examples such as, “Illegal aliens impose about $26.3 billion in costs on the federal government and only pay $16 billion in taxes which equal a net deficit of $10.3 billion.” Incorporating facts and opinions from other experts or journals would enable readers to reach their own informed conclusions and not be swayed solely by Camarota’s points of view.

Camarota relies heavily on the argument that the total contributions of illegal immigrant do not offset their consumption of resources and the high cost they impose on American society. He attempts to enlist negative sentiment toward illegal immigrants by dwelling on the dramatic negative impact they have made on the American economic landscape. Camarota also assumes that his readers are concerned only about the economical impact of illegal immigration. He does not acknowledge the human rights aspect nor discuss the compassionate views of many Americans who propose amnesty on the basis that we should not deny them access to the American Dream and our principles of universal liberty.

With such a controversial issue many people may agree with Camarota simply due to the fact that, in today’s extremely difficult economic environment, the U.S. no longer has the luxury to support non-citizens who are here illegally. His goal was to shift a preconceived notion that illegals are beneficial to the overall economy and I think he succeeds in that endeavor. In the final analysis and, in spite of his one-sided approach, I believe Steven Camarota will ultimately gain the support of his readers due to his convincing presentation of the facts.

GM Hand forced to Bankruptcy

More signs of governmental control of the economy comes at the hand of General Motors (GM). The Auto Maker has received an ultimatum from the government to file for bankruptcy by June 1st. After giving roughly $14 billion in federal aid GM has failed to shed bad assets and the government is forcing their hand in hope that GM can restructure and still save its Brand name and not allow the company to go under. One proposed plan is to launch a new separate company which will purchase all remaining “good assets” from GM. As for the bad assets they will be liquidated over the next several years as part of GM’s bankruptcy sale. This option would greatly reduce the size of GM’s company, yet currently is the only logical option as currently the company has no means in being able to sustain itself successfully for the next several years. As for investors within GM I would stay away. GM is still on shaky grounds with many unanswered questions. First I want to see a strong restructured business plan that provides a confident long-term outlook. They need a way to shed bad assets and keep good assets in hand which is why I applaud the plan mentioned as it will do that in a clear-cut format. I know I have been a basher of the American Auto Industry but I actually hope GM can make a successful comeback. The company has to have a new motto and build off next generation cars and move away from the large trucks and SUVs they have been producing the last several decades. GM needs to become a much smaller company as well. Part of their problems were they became so large, with so many weak links that when it all crashed it was to late to fix the problem. With proper management their is no reason that GM can’t make a stable comeback the question now would have to be when.

Capitalism under Obama

Even during good times, economies are often changed dramatically by political decisions. If you want an example look at South America over the last 30 years. In the U.S., Capitalism is always under threat and the threat is higher when the legislative and executive branches are both in the control of liberal Democrats, who are big admirers of the European system of high social welfare expenditures and “managed” or better, mismanaged capitalism. Unfortunately, currently with the new American political order, the Obama Administration we might see a stagnation of the sort that other managed capitalist economies like Japan and most of Europe have experienced. Being optimistic I hope the pioneering free enterprise spirit of the U.S. can quickly reassert itself. Putting the recession aside, the big long-term problems of the country are a bankrupt social security system which we can thank FDR and bankrupt Medicare and Medicaid systems which we can thank LBJ. This is not to say that Republicans are faultless. However most of the time it is dangerous to have both the legislative and executive branches firmly under the control of the same party, whether Democrat or Republican. The reason we founded the system of separation of powers was to make sure this did not happen. Politicians like power and spending generates power. Democrats and Republicans like to spend money; they just disagree on where the expenditures should go and who it should go to. Democrats like social programs. Republicans like defense expenditures, energy, and farm subsidies. Although the economy is likely to suffer from high unemployment rate and low profits reports from corporate American, the market has already incorporated all this bad news into prices of the shares. In the real economy the pain of a recession may be spread out over several years, but investors bear the full expected impact as soon as the market sees it coming. Expect markets to rise rapidly faster than the economy imporves. Current times are a perfect example. This means there is no reason to be gloomy about our current investment prospects. Prices may continue to fall, but only if the news turns out to be even worse than the market expects. We are equally likely to be surprised by good news that pushes prices back up. It is impossible to forecast how prices will evolve, but we believe the market is currently offering investors unusually high expected returns as compensation for this uncertainty.