Thread: Illegal Immigration Crackdown May Push Jobs Out Of The U.S.

Illegal Immigration Crackdown May Push Jobs Out Of The U.S.

BY SEAN HIGGINS
http://www.investors.com/editorial/IBDA ... e=20070821
INVESTOR'S BUSINESS DAILY

Posted 8/21/2007

The Bush administration's latest immigration policy may shut out illegals but could also export jobs, business groups warn.

The policy forces employers to fire people who can't be verified as legal, or face stiff fines.

That's certain to shrink the low-skilled labor pool. But rather than push up low-end wages, it's more likely to move those jobs overseas where labor costs are cheaper, say many in the business community.

Austin Perez, a lobbyist for the American Farm Bureau, said farmers' labor costs are "at the breaking point." They can't raise wages further without charging more.

Enforce Locally, Eat Globally

But shoppers at the grocery store don't have to buy U.S.-grown fruits or vegetables. They can buy produce from other countries.

"If our guys try to raise prices, they are going to be replaced by foreign production," said Perez.

Angelo Amador, director of immigration policy for the Chamber of Commerce, says that isn't just true of agriculture. Lots of low-end jobs can be outsourced — even in industries one wouldn't expect.

"People say some jobs like construction cannot go abroad. Well, actually a lot of it can be done prefabbed abroad," Amador said.

Douglas Rivlin, a spokesman for the National Immigration Forum, a pro-immigration coalition group that includes big business, issued a similar warning.

"Businesses may close or move offshore because of the loss of workers and the costs of compliance," he said in a press release.

On Aug. 10 the White House announced, among other provisions, that it would raise civil fines for hiring illegal workers by 25% and require employers to verify the Social Security numbers of employees.

Getting Tough On Firms

The Social Security Administration will send "no match" letters to employers identifying hires using numbers that don't match the data on file.

The program had existed before, but until now employers were not required to resolve the cases. They are alerted if 10 or more employees show up on no-match lists.

Employers will now have 90 days to clarify the matter. If the worker is not legal, employers must either fire the person or face an $11,000 fine per employee.

No one knows exactly how many illegal workers are in the U.S. A common estimate is 12 million.

Pia Orrenius, senior economist for the Dallas Federal Reserve, has found "no match" letters to be highly effective in dissuading employers from hiring illegals.

Orrenius estimates that over half of illegals use bogus Social Security numbers to get jobs. SSA data show payroll taxes on $586 billion of wages have been paid so far in fiscal 2007 by people whose numbers don't match the data on file.

After 9/11, when the no-match system began, employment by Latin American males fell by 11%. Many found off-the-books jobs, Orrenius says, but some employers got out of the business entirely.

"It is hard to measure the correlation and causation between changes in immigration policy and offshoring and outsourcing," she said. "But obviously the higher the wage costs in the U.S., the more you are going to accelerate this trend."

Consumers usually feel the costs from taxes, regulations and mandates. Popular resentment can be a powerful tool to reverse the policy.

The tougher line on immigration might not spark that if the labor costs can be moved overseas. Polls have generally found immigration restrictions popular.

With new-home construction at a 10-year low, demand for low-skilled labor is weak.

But many businesses use migrant labor and will suffer, even if most Americans don't notice.

"People say, 'Well, only the dishwashers are illegals.' Well, what about everyone else working at the restaurant?" said the Chamber's Amador.

Fans of restrictionist policies like the Center for Immigration Studies argue that they will cause some economic pain, but only briefly.

"There is going to be an economic impact, but it will be a transitional impact," said Mark Krikorian, CIS' executive director. "We've heard these Chicken Little arguments over and over again in other contexts, but they are all lobbyist spin."

Good News,the traitor businesses are threatening to move off shore.Do so and take your Illegals with you !!!!!!!!

This would be a good thing and would make startng a business with citizen employees much easier.

Our countries businesses must not be allowed to continue their slave labor practices which in turn hurts taxpayers who must foot the bill thru welfare,schooling,health care for their workers.

We may as well pay a little more up front .
Its the only way to stop the invasion.....

The remedy would be to raise import taxes which would keep America's bussinesses competitive.

That's certain to shrink the low-skilled labor pool. But rather than push up low-end wages, it's more likely to move those jobs overseas where labor costs are cheaper, say many in the business community.

So is this a threat on their part? (Business community) Because it sure sounds like one to me.
Greedy bastards, they know this isn't true.

It's the policy of this admin. to support out sourcing of American jobs.
Jorge Boosh has aided in the outsourcing of millions of good paying jobs.

If we don't have enough workers to fill low paying job vacancies, let them go overseas. We should not be competing for low wage jobs, it will only lower our std. of living.