Shocker: Denying Companies Illegal Labor Forces Wages, Benefits To Rise

As Mark Krikorian says, “Damn you Adam Smith.”

Raids could force meatpackers to raise worker pay
[...]
“I think it is a big problem, a huge issue for companies,” said Lance Compa, a Cornell University professor who has studied workplace Immigration issues.
“What (the companies) are doing now is scrambling. A lot of them are turning to employer agencies to fill their workforce. But if they want a stable workforce, they’ll almost certainly need to raise wages and benefits.”

Now, typically you wouldn’t invoke Adam Smith and his “invisible hand” in an instance where the government is arresting and deporting workers, but in this instance it works. The workers being taken out of the labor pool are illegal workers whose labor was being exploited outside of our tax/labor/citizenship laws. Now, I don’t necessarily agree with all those laws, but that doesn’t mean we can just start ignoring them when they become inconvenient.
If we need to change or labor laws then fine. Let’s change them. If we need to make it easier to legally immigrate into this country (and I think we do) so that businesses here can get the labor they need then fine. Let’s do that. But let’s not just ignore the law.

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  • http://Array RLM

    This story is so obvious that it shouldn't even have to be reported. Labor is just another input into production, much like the raw materials, plant and equipment etc. In Econ 101 we all learn about the law of supply and demand. To much supply drives the price down. Therefore, to much illegal immigration drives down the price of labor.
    One of the arguments that you hear proponents of immigration say is the "they're just doing jobs that Americans won't do". The real quote should be "they're just doing jobs that American's won't do at the wages we are willing to pay". I don't think paying a hotel housekeeper $10.00/hour instead of $6.00 per hour is going to cause the price of rooms to rise by much, but it is a price I am willing to pay. I know this post is getting long, but wages have not kept up for many many years.

  • RLM

    I would like to continue on my train of thought regarding wages. When it comes to wages, I reflect back to my college days. In 1980 I worked part time in a warehouse driving forklift, loading and unloading trucks, sweeping up, and sometimes helping the drivers on their routes during a busy time. I worked around 15-20 hours per week. I made $5.00 per hour. In 2007, I would have had to make around $14.00 per hour to have the equivalant purchasing power. Now, how many part time jobs can a college student get that allow you to work 15-20 hours per week and make $14.00 per hour. I'll bet most of you can't think of to many…

  • http://sayanythingblog.com/ likwidshoe

    It's that supply and demand thing that the left tells us was "discredited".

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