Wednesday, October 04, 2006

Immigrants and the Economy

The Washington Post displays that the farming industry is the first to feel the impact the immigration debate has upon the the American economy. For those who enjoy fruits expect to pay a higher price. I won't spend your time by reinstating what the Washington Post had said, but I will use it to extend my arguement.

The arguement is simple. As the border tightens, the illegal immigrants look towards a job that enables them to gain year round rather than work on the fields which workers are needed only during certain times throughout the year. The decrease in workers in agriculture will decrease the amount of produce produced throughout the year which causes the price to increase.

Let us keep it simple. Assuming demand for produce stays the same, the supply will shift to the left as quantity has decreased. Remember where supply and demand intersect is the market price therefore the price has now increased. Are we to go back in time where only the rich could afford to receive the benefit of eating grapes?

Well, if we wish to have a tighter border we must have expected to pay higher taxes as to pay the wages for the border patrol, workers who build the wall across the Mexico border, and for an increase in prices upon products we buy. I am sure if we add all the costs that we must pay and compare them to the costs claimed caused by illegal immigrants we shall find that the cost of increased border tightening is higher than having illegal immigrants. For this we can put the stamp of INEFFICIENT to the policy of tightening the border.

3 comments:

Anonymous said...

Not to mention the effect of peak oil on the price of food. It's going to be VERY expensive to eat in the next few years.

Idunois said...

Thanks Anon 3:26

Peak oil will definitely add to the price of food. My illustration was assuming all else the same I just did not place that assumption because there can be many other factors that will drive the price higher and lower. Never know the government may try to subsidize the producers costs... in that case it would be even more damage in the form of taxes. May not eat produce, may not want produce, but the government in trying to help the produce farmers may make you pay for it anyway. Thanks again for your input on peak oil anon. Maybe you should write your own book on the subject??? We can tell it sells

Anonymous said...

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Just found this one. Let me know what you think.