Thursday, May 09, 2013

We'll Lose Money With Every Illegal immigrant, But We'll Make It Up In Volume

The Detroit Free Press Headline reads: Social Security: Immigration bill would boost economy

Apparently having a few million now legalized low-skilled workers will be a boon to this economy. You know the same economy where there's currently a surplus of low-skilled workers and if anything employers are clamoring for highly specialized skilled workers.

The dubious claim is that legalizing these workers, who are at least in theory already here and working under the table, will result in economic growth and help save Social Security.

In a letter to Sen. Marco Rubio, R-Fla., one of the members of the Senate "Gang of Eight" that is pushing for the overhaul, Social Security Chief Actuary Stephen Goss estimated the bill would add 3.2 million jobs, increase the country's gross domestic product (GDP) by 1.63% and bolster the Social Security trust fund over the next 10 years.

In other words, 3.2 million new legalized workers paying into Social Security at low wages will save the system, the very same system where low wage workers can end up drawing more from it and other programs than they contribute. What could possibly go wrong?

It's only revealed five paragraphs down in the article the real economic effect of such legalization:

However, those who oppose legalization of unauthorized immigrants, such as the Heritage Foundation, say allowing 11 million people who are largely low-skilled to access U.S. taxpayer-funded social benefits will cost more than it generates. A recent Heritage study predicted the bill would cost the country $6.3 trillion over the next 50 years.

Interesting to see that the US Government in taking over GM also adopted GM's economic philosophy.

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