5/2/14

Illegal Alien Labor Supply and the Retardation of Minimum Wage


With of millions of illegal alien workers in the U.S.A. and the potential for millions more arriving whenever the economy improves a little the demand for labor imposes a natural governor retarding the rise of the natural minimum wage. One feels the Democrat Party efforts to force through a minimum wage increase high enough to stimulate the transfer of jobs to Mexico and China is a King Canute sort of aloof Ivy League idiocy of those detached from the reality of the sun belt and non-blue states full of government workers.

Consider Phoenix temporary employers for the homeless and others without quality permanent employment. If the minimum wage is $15 an hour then Labor Ready and Labor Finders would need to charge employers about $25 an hour per temp worker. With illegal aliens working for $3 an hour the possibilities of an American citizen getting a job would be slim to none. No one besides large corporate employers that can't hide illegal temporary workers would hire. Americans. With N.A.F.T.A. making cross border production easy-breezy production might preponderantly shift south of the border. That's a  small act of Congress but a giant leap for Mexico.

Democrat Party leadership doesn't seem to understand the fundamentals of supply and demand. Like King Canute they seem to feel that they just need to command something to happen and it will be so. Reality is an externality to not only global warming deniers but to Democrat economic analysts.

So Nancy Pelosi is ansy to get illegal aliens by the millions made legal so they can work for $15 an hour too. No worry about the cheap labor for Democrats though-they expect millions and millions of new illegal aliens to arrive to take the jobs Americans are legally able to take for less than $15 an hour. They ought instead to consider the actual facts of labor supply and real wage compensation in relation to demand for labor and seal the border against illegal immigration entirely. If jobs that can't be outsourced are must be filled by legal workers the value of labor will increase and wages will naturally rise. It would be a simple matter to create hundreds of thousands of new temporary jobs building a vast Mexican border boundary control zone that is ecologically advanced with canals for desalinating seawater to make fresh water for irrigation and drinking along the desert .

The Democrat Party, deficient of rational economic reason since the loss of Tip O'Neil has no sense of nationalism and benefits foreign nations equally as well as that of the United States. They simply don't know about ball control, and like the Republicans who are incomprehending of how the Russian bread basket-the Ukraine, is of inestimable value to the north Rus people (some Congressmen believe Russians should buy there bread from Wal-Mart), or Democrats and Republicans that support the rise of a constellation of new Al Qaeda training camps all over North Africa, the middle east and central Asia as a result of the ineffective interventionist policies probably want to stimulate the rise of Madrassas and Al Qaeda cells in the Ukraine.

It might be informative to compare the historical grain production from the Ukraine shipped to the rest of Moscow since the 18th century to determine how much is lacking presently. It should be noted that Russia itself exported 20 million metric tons of wheat in 2010-2011. 

http://www.marketwatch.com/story/russia-ukraine-surging-in-global-grain-markets-2012-05-14

 http://www.fao.org/docrep/017/aq344e/aq344e.pdf Ukraine wheat export economy 1990-2000

 http://en.wikipedia.org/wiki/Agriculture_in_the_Russian_Empire

 http://www.nass.usda.gov/Education_and_Outreach/Reports,_Presentations_and_Conferences/Yield_Reports/Grain%20Production%20in%20the%20USSR%20Present%20Situation,%20Perspectives%20for%20Development%20and%20Methods%20for%20Prediction.pdf

There is a choice of building the United States toward rational ecologically efficient lines with secure, responsible boundaries and population or just incompetantly increasing a sprawl of a few hundred million new Americans, destruction of the remaining environmental health and continuation of cheap labor, low-tech driven boom and bust economic cycles premised on exploiting cheap labor and avoiding environmental and social responsibility wherever possible. Without a Democrat Party that is competent and responsible there is no one to reign in the economic aggression of Republican capitalism when it needs to be moved into constructive channels.

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