The Border Swings Both Ways

Abstract

The United States-Mexico border is a large source of controversy in American politics. The economics surrounding immigration, both legal and illegal, are a critical area to take a closer look at.

Article

A huge domestic debate is raging now on the status of (and what to do about) the eleven plus million working poor in America—better know as illegal aliens. Most of the noise is against keeping these people. Let’s build a thousand mile wall says Buchanan. They tried that in Berlin, and the Soviet Union, I think. It’s economic, they say.
I actually think it is darker than that.

But this is a supply chain magazine, so let’s stick to the supply chain issues!

More Tax Payers

Think of the economics. These people are working, for low wages, yes. And using services of the society because the are not paying taxes. Ok, this problem is easy to solve. Guest passes would make them legal workers, who now would pay taxes. 11,000,000 people who will now pay taxes!!!! No doubt they will not be in the 35% bracket—not at first, anyway.

But making them legal gives them a stake at bettering themselves—the American dream.

In addition, we are really worried about border crime—drugs, etc. Do you think a person who is fearful of authority will turn in a potential criminal—no way! But an upwardly mobile person— even a guest worker—will want his neighborhood safe, so he can go safely to work and have his property kept safe—not stolen while he is out toiling.

We Benefit

Here are some benefits to the US for the guest worker program:

  • Income tax (over one billion on the national level—peanuts, but a start)
  • Reduced counterfeits, manufacturing in sweat shops ($200 billion world wide problem)
  • Reduction in border crime and costs associated with border crime (billions!!!)
  • Improved drug enforcement, and reduction in smuggling (billions)
  • Improved law and order in the barrio.
  • Enhancing the small business structure of America—shopping and sending goods home to the family—this is already a multi million dollar micro economy in Texas and California. With guest passes, these folks will open credit cards and really get into the great America way—Shop till You Drop!
  • Reduction in exploitation of both the family of the worker back in Mexico as well as the silent suffering here.

The fact is that all economies have ‘entry level’ jobs— from Wal-Mart, to MacDonald’s, to field workers, road workers and basic construction. As much as we all wish for a basic egalitarian base—as capitalists we yearn for an upside, of course—but we don’t want a bottom of misery for any one—here or abroad. I notice job openings a plenty—I don’t want those jobs for me. I am lucky to be in the glorious middleclass of America—the top 5% of wealth in the world.

About Our Needs

Mexico has done an abysmal job of creating a solid, sustaining manufacturing trade and craft base to create a genuine emerging middleclass. No doubt things have gotten better there, but I think Mexico’s policies should not drive ours. Their opinions have very little to do with ours. We don’t ‘owe’ them anything to allow people to work in the US. No, this is about our needs.

The reality is that we need these workers. And, if we want to tackle the problems of counterfeiting, smuggling, drug trafficking and other unseemly activities that some of these people are forced to associate with or participate in, it won’t be by not enabling them to have a life out in the open.

I realize that this is a minority opinion, but the reality is that these folks arrive and are instantly absorbed into the economic system. They are here to work—not to take handouts. Let’s go on with allowing them to work out in the open, and pave the way to more reasoned approaches to visas, emigration and managing the US borders!


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