Depreciation of Wages for Americans and Legal Immigrants
Wage depreciation for Americans and legal immigrants is a serious consequence of illegal immigration. It should come as no surprise to any American citizen that wages have been flat and even declining for a very long time. Middle class workers as well as the low skilled working poor know that their take home pay hasn't come close to keeping up with inflation.
But we hear about continual improvements in worker productivity - so where is the money? In past generations workers shared in their productivity gains. It is a uniquely American story - poor kid works hard and ends up rich. At least it used to be that way. Nowadays a person in middle or poor working class has a better chance of hitting the lottery than getting rich through their hard work.
Why is that? Well - the rich folks have gamed the system. Starting in 1965 and continuing through the 90's with the 1996 immigration act we've begun to import more foreign workers than at any time before in our nation's history. Even more than at the height of the great waves of immigration in the early 1900's to intentionally depreciate wages in America.
When you count up legal permanent residents, refugees, family reunification and special work visas you end up with about 1.8 million people. Now with over a million potential new workers admitted each and every year and our population increasing from the high birthrates of recent immigrants - we have a big problem with wage depreciation.
With real unemployment (U-6+discouraged) in the 23%+ range and the importation of over a million foreign workers each year we have a huge labor oversupply. Companies have their pick of the cheapest workers from around the world. Unfortunately that usually means higher priced Americans are pushed aside for less expensive foreign workers.
On top of that the law of supply and demand comes into effect. The more workers willing to do a job, the cheaper the work becomes. The massive oversupply of labor is why wages are flat. Illegal immigration and illegal immigrants create wage depreciation that hurts American workers. Companies have no reason to pay people more money because if you demand more - they will replace you with someone who will be happy to work for less.
It is easy to connect the dots why the billionaires are all for saturating the labor market - they make even more money by paying their workers less. That is why they are paying off some politicians and threatening others to enact amnesty.
Flooding the labor market with 11-30 million new 'legal' workers with enforcement 5+ years down the road and doubling legal immigration along with tripling of special work visas (H-1B, L-1 etc) will suppress wages for the next hundred years as we will always have an oversupply of labor.
If amnesty (and the massive increase in legal immigration and work visas) passes it is highly likely that we will see 3-4 million American citizens each year lose their job and be replaced by cheaper foreign labor in the US. And salaries and hourly wages will continue to drop.
Wage depreciation is actually intentional wage suppression for Americans through an oversupply of labor that can only be corrected by tightening the labor market. We need to have fewer workers than available jobs. We must stop amnesty and dramatically reduce legal immigration for this to occur. Please call and write your representatives at the State and Federal level and demand that they care more about working Americans than pouring more money into the pockets of billionaires.
If enough Americans take action then illegal immigration and wage depreciation can be stopped!