for BMW

jeudi 27 février 2014

Income Inequality and the Immigration Act of 1965

I was reading an Ann Coulter Article about minimum wage which pointed out:

http://ift.tt/1codPfA

Quote:

Since the late 1960s, the Democrats have been dumping about a million low-skilled immigrants on the country every year, driving down wages, especially at the lower end of the spectrum.

According to Harvard economist George Borjas, our immigration policies have reduced American wages by $402 billion a year -- while increasing profits for employers by $437 billion a year. (That's minus what they have to pay to the government in taxes to support their out-of-work former employees. Of course, we're all forced to share that tax burden.)

Or, as the White House puts it on its website promoting an increase in the minimum wage, "Today, the real value of the minimum wage has fallen by nearly one-third since its peak in 1968."

Why were wages so high until 1968? Because that's when Teddy Kennedy's 1965 Immigration Act kicked in, bringing in about a million immigrants a year, almost 90 percent of them unskilled workers from the Third World.

Our immigration policies massively redistribute wealth from the poorest Americans to the richest. It's a basic law of economics that when the supply goes up, the price goes down. More workers means the price of their labor plummets.

Unfortunately, politicians spend a lot more time talking to rich employers than to working-class Americans. And the rich apparently have an insatiable appetite for cheap labor.

Harvard Borjas Article/Study

http://ift.tt/1kcfvku

This is something I had not considered. I don't think that it is the only reason for a widening gap, but I wonder how much of an effect, if any, our immigration policies had on destroying working-class wages?

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