Coulter, Cubans, Immigration, Wages, Improving the Economy

Ann Coulter has a solution for raising wages to $14.00 an hour:

Ann Coulter is often right, very right, especially when she talks about the effect of what she calls “liberal” policies, what I call “left-fascist” dictates. (When government enacts a law, that is a “dictate”, because you obey “or else!”). Her writing is entertaining too.

But she is also wrong sometimes. Conservatives are following the socialist plutocrat misdirection tricks when they beat the drums of immigration too loud.

It may be that “all other things being equal”, more immigration for a time may bring down wages, especially if the immigration is unskilled and doesn’t bring investment wealth along with it.

But if they bring wealth-creating aptitude, it doesn’t matter if they come into the country completely broke. The Cubans infused Miami, Florida in 1959 and then 1960s with more than just a major population boost. That first wave of Cubans had owned ranches, businesses, sugar cane plantations, they had been the organizers and investors in Cuba. They knew how to build things up.

They are a very big net gain for the economy, in proportion to their numbers. At first these penniless immigrants may have displaced an unskilled worker here and there, but their net effect was to increase production.

But take the unskilled workers. If you really and truly stop immigration and so restrict the labor supply by mandate to keep up the demand and pay for yourself, there some negative effects.

One, if you’re a computer programmer for example, this makes offshoring more attractive than it was before.

Two, on a more macro scale, restricting the labor supply (skilled or unskilled both) raises the production cost for the business. The cost going up increases pressure to raise the prices on the production of goods and services. That cost is borne by the consumer, eventually.

Consider that the consumer is everybody everywhere all the time.

So, that may seem it gives you an advantage. But let’s say a big number of people think the same way. Every other profession in industry does the same thing. But wait, with information technology, that’s all industries. Everything you buy costs more, because you’re financing the other guys who get the same benefits from restricting the supply of your skill.

But the middleman gets his cut, and he does not ask politely. The middleman is the tax man who takes his cut like it or not, to finance enforcement. You don’t usually make the connection between the higher cost of things and cutting down immigration numbers, or the extortion effect of enforcement, but those connections are there.

It’s the same principle with the minimum wage demands by unions.

It’s true that some “Democrat Party” strategist devil came up with this diabolical plot to do this big push for a minimum wage. They desperately want to change the subject away from Obamacare. Their polls and their focus groups tell them that this favors them.

But the Republican politicians are somewhere between stupid and opportunistic on this and other issues. The minimum wage is a fantastic opportunity to educate the public. But they use the stupidest arguments to oppose it.

The stupid argument is that it’s bad for the economy, it creates unemployment. This is true, and it should be part of it, but saying companies have to fire people is maybe not the best approach for convincing new numbers. They should emphasize at every turn that poor young whites and blacks should have a way to make at least a “training” wage. The marginally productive, like special needs youth, they should have an opportunity to feel productive.

Rand Paul is doing some of this. He is definitely not his father, I disagree sharply with some of his approaches, but that’s what he’s doing. He went to Detroit to set up shop in an urban area with the blight caused by decades of non-stop socialistic policies.



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