Populist Economist – Close The Immigration Window

One would think that immigration would be a slam dunk right wing idea. While this is true, the first time a left wing populist says “We’re full”, he or she will win landslides and handpick his or her successor. This is in effect what Lega has done with their alliance with 5Star. In America, this would be the Trumpists joining forces with the Bernisheviks and remolding American governance for a generation. This is overdue and easy to see as more parts of America turn into the Star Wars cantina scene. There are quick and easy federal moves to make this happen, but there are also initiatives states can do to harden their areas.

Tackling illegal immigration is of course just one piece of the puzzle. This will remove labor supply, increasing wages. By removing labor supply at the low end it creates a slight shortage which will force employers to bid for entry level and lower skiled work, which will have knock on effects up the chain. Immediate fixes are constructing a border wall and repositioning all of our military surveillance technology to the border for guarding our nation’s porous southern border. The wall would cost +/-$25 billion which could easily be paid for with a small 10% remittance tax on money to Mexico. We would want to set this low so that money mules would not pop up offering to transport sums to Mexico. If one sets the tax too high, the mules could take a cut to provide the transfer. A small tax still pays the wall off quickly.

Automation is coming and in many spots already here. Midwestern farms automated more than California merely due to distance to the border and difficulty in a steady supply of illegal labor. It is time California farms automated. Automation is also going to put pressure on labor demand in general with economists unable to agree on how many, but millions is a safe bet. Why would America not encourage automating away jobs of lower value filled by illegal workers while simultaneously promoting automation elsewhere? These are policies for the open borders ideologues and the capital of specific economic interests.

Additional regulations would also kill the infrastructure that allows illegals to live and prosper. Let us be frank that illegals do get exploited by employers and landlords who provide these individuals with cash revenue that will not be reported (landlords) or unreported labor that does not trigger the multitude of employer costs for new employees. Employers do not want to pay proper wages and landlords want to stuff people into properties that they do not want to upgrade to compete with newer units.

Simple fines for employing illegals or renting to illegals would suffice. The fine for employers could be equivalent to minimum wage for 2080 hours per violation. This is similar to New York where failure to carry the mandated state leave program triggers fines well in excess of the cost of the coverage. Landlords can rent to illegals and suffer no fines. None. Even in states where it has supposedly been made a crime, landlords get out of problems by the plausible deniability of not actively harboring them. Federal laws actually make it a crime to decline to rent to illegals or demand certain documentation.

This should change. Each violation should trigger a fine of a year’s worth of rent for the mean rent in their zip code. Use mean so that we know the fine will be in excess of what the rent most likely is for the substandard apartments or homes. Everyone knows the shoddy apartment buildings or trailer parks that companies stuff their illegals into with landlord complicity. People only see it when they take their kid to school five years later. This does not even need federal law. Any state could write something similar to the Alabama HB 56 law, which was attacked by the Obama admin but most parts stood. Tack fines onto the violations and watch everyone comply. The cost of noncompliance will dwarf using E-verify and running background checks.

Illegal immigration is not enough. There are too many legal immigrants entering the nation as well. A quick simple fix is ending chain migration. This has immediate economic efects by removing public goods and services users. Other fixes are curtailing or eliminating student visas and targeting the myriad of visas that employers use to reduce costs and feed the capital-lobbyist-politician cycle. The H2B visa is why so many Eastern Europeans work summer amusement park jobs in New England. The J-1 can be reduced as right now we let over 300,000 foreigners in on these visas. Bit by bit, the 1.1 million legal entrants can be chipped away, creating opportunities for the millions of American who have dropped out of the workforce or are just entering.

I want to talk about two visas that should be reduced dramatically or eliminated entirely: the H1B and the EB-5. You may have heard of these two visas. The H1B is the white collar backstabber visa. The H1B often fulfills more routine white collar work or white collar production work. This is entirely to control costs and employers do this by using foreigners that they can cycle out after a few years. This formerly was the strata of jobs that employers would fill with new hires and figure out who to assign elsewhere and who to promote. I have talked to IT professionals who have stated how entire departments that once found the future project managers and team leaders for other departments around their firm have become set it and forget it IT janitor pits.

This is not just a cost of today move. This is about the future. By not using natives, they never have to worry about development, if they’ll demand more and if they’ll be there long term to accrue tenure and see their pay jump. Pay can also be lower since employers mine Asia. This has created a caste of Indians in America who perform routine white collar work. Every city has this now. This is also a potential national security threat as H1Bs can get access to sensitive technology at different companies. Beyond just the H1B, there is always the issue of them bringing a spouse, having kids and suddenly the one H1B becomes a family of four. As a side note, all four will get affirmative action preference for hiring over native whites.

Dirtier than the H1B is the EB5, and this one should be shut down entirely. This visa should be renamed the Buy Citizenship. For $1 million or $500,000 in depressed economic zones, a foreigner invests in a business that will employ ten Americans, and they get the easy street to citizenship. Worse than this is the EB5 can be split into shares. It is not just for one person as they can split it up, plus their shares can be sold. With chain migration, this could relocate entire villages if scammed enough.

Banks love these EB5s because the investor can provide cash but also as they are normally from the third world, they can qualify for affirmative action loans and fulfill a banks quota for lending to minorities. If you ever wondered why so many run down motels are owned by Indians, this is the cause. This goes for mini-marts in urban areas. Subway has fallen on harder times and relies on this to churn franchises over. Unlike the H1B it does not depress wages. The EB5 investors help fund marginal projects, after all, Jared Kushner’s family was begging Chinese nationals to invest via EB5s. This conduit allows asset owners of dodgy businesses to receive inflated purchases prices for their businesses. This is a payoff for holders of declining interests.

This is an easy right wing economic policy, but should also be a winner for the left wing. Any improvement of the under and working class would alleviate strain on public goods and services. The last mass immigration experiment in America ended with the door closing in 1924. This helped congeal an American identity that achieved great heights in the 20th century. If there is any hope to firming up a 21st century American identity, it is in closing the door and sorting out what it means to be American. The future is not Brazil since Brazilians have a strong sense of national identity regardless of where they fall on the color spectrum. No one can agree on what is America/who is American, so unlimited immigration will only offer the coup de grace to the American experiment. Left wingers may scoff at this, but the populists and old union Democrats must realize the payoff to capital open borders is. The future of open borders is favelas and a one party state, but not for long. There can be no shared story if all people have are Marvel movies and Iphones. If the left does not see this coming, they will rule over ashes as the system is crashed and capital flees for safety elsewhere.

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