One Creative Thought

RX: One creative thought, take daily until the symptoms go away. Find creative suggestions and/or solutions to problems within and without the US.

Friday, March 31, 2006

Increase Minimum Wage - Decrease Illegal Workers

Okay - while commenting on Mr.T's desire to increase the Federal minimum wage amounts, I touched on the idea of minimum wage increases as being counterproductive to importing illegal immigrants.

PS: This is OPINION folks - purely suggestive with but a few probable facts. But I think it does bring out an issue others have yet to discuss.

I propose the following:
"If you increase the Federal Minimum wage from $5.15 to $7.25 in two years, you will reduce the need for illegal immigrant workers."
You hear time and time again the classic Immigration Mantra "jobs Americans won't do". Well, there are few jobs - and I mean few - that lower economic-class Americans wouldn't do for $7.25 an hour.

They WILL take those jobs. But wait!

Increasing labor cost is counter-productive to stimulating an economy. After all, LABOR COSTS are a part of the equation when calculating how much to charge a potential customer for a product.

As labor costs go up (forced by gov't mandated minimum wage levels) so does everything else - with the potential for an actual decrease in consumer buying power. Translated: "You mite git more but you gits less."

If current immigration reform goes the way "some" want it to go, we're going to have 8-14 million additional "legal" residents. Do I hear a "booyah"?

The cost of hiring those new "legal" residents "could" go up don't you know; because Teddy Bear and buddies are pushing for a mandatory increase in minimum wage. And an election year is fast approaching us. Suppose they get the boost in minimum wage, okay?

Now the 8-14 million will not only win on the immigration issue - they're going to get a pay increase too! Way to reward LAW BREAKERS - give them status AND more money!

Now...

I imagine those who really need the cheap labor will find "some method" of still obtaining it - right? But how? Where?

Like uhm... "Federal Guest Workers". Uh huh - and want to bet they will be EXEMPT from Federal Minimum Wage Guidelines but will HAVE to pay ALL Federal, State and Local taxes? Reciprocity you see...

To recap:
  • 8-14 Million illegals become legal residents in-waiting (hee hee).

  • Minimum wage guidelines apply to those 8-14 million, resulting in a potential labor cost increase of $16 to $28 MILLION PER HOUR to be absorbed by other legal citizens.

  • New foreign workers, via the Federal Guest Worker Program, will NOT qualify for Federal Minimum Wage guidelines - as they are temporary visitors. They WILL have to pay ALL Federal/State/Local taxes.
So tell me - who's the new "illegal" in terms of economic power (money)? Why none other than the new Federal Guest Workers, that's who.

Then tell me this: How long will it be before Federal Minimum Wage Guidelines are applied to the Federal Guest Workers?

When that happens - the corporations, companies and organizations seeking cheap labor will have to turn to the only remaining, untapped force available.

Americans - or Robots. Wanna bet they choose robots?

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