Robert F. Kennedy, Jr. understands illegal immigration perfectly: The Taxpayer Burden As An Externality
By
Charles Breiterman, Monday, April 27, 2009, 11:01 AM
In
Friday’s blog, I introduced our
taxpayer burden page. Eighty percent of illegal immigrants are low-skilled, and earn low wages with no benefits. But large concentrations of illegal aliens reside in cities such as New York, Los Angeles, and Chicago where it is expensive to live. Still, they apparently live better in their homelands. More than 3 billion people in the world live
on less than $2.50 per day. In
Friday’s blog, I discussed an actual illegal immigrant family in Los Angeles consisting of a husband, wife, and 5 children, living on $15,000 per year. I believe it is impossible to make ends meet in Los Angeles with 5 children on that salary. They survive by turning to welfare benefits and private charity.
Employers gain from illegal immigration because they can hire workers at lower wages. Illegal immigrants gain because they can earn more money than they could in their homelands. The problem for the taxpayers is that some of the cost of the employment relationship is shifted onto us. That cost shifting is an
externality. Understanding the
externality concept is essential to understanding why NumbersUSA has its roots in environmentalism.
An externality is when the benefit or cost of a transaction is not reflected in the price arrived at by the buyer and seller when they enter into the deal. The benefit or cost is shifted onto society. When society receives a positive benefit from a private transaction, that is known as a positive externality. An example is when an apartment dweller installs a smoke alarm. The money is exchanged between the apartment dweller and the smoke alarm company, but the entire building benefits from the early warning if there is a fire. Lives and property may be saved because of the private transaction.
An example of a negative externality is pollution. Cars used to have no pollution controls. The buyer purchased the car, General Motors sold the car, and the rest of us had to breathe the polluted air. People got lung disease due to the sum effect of millions of private transactions. The cost of the pollution generated by the internal combustion engine was shifted onto society. With the passage of clean air legislation in the early 1970s, rather expensive pollution control features were added to cars in order to prevent pollution. By that action, cars buyers and sellers were required to pay money (in the form of higher costs of production and higher purchase prices of automobiles) to prevent the externality from being shifted onto society.
In a
recent Frontline documentary on water pollution,
Robert F. Kennedy, Jr. participated in an exchange that almost perfectly illustrates why the externality concept applies to illegal immigration:
Kennedy:
(at 41:27) Corporations are externalizing machines. They are constantly devising ways to get somebody to pay their costs of production. And if you are in a polluting industry the most obvious way to do that is to shift your cleanup costs to the public and make yourself a billionaire poisoning the rest of us.
Interviewer:
Are you saying the market is distorted?
Kennedy:
You show me a polluter; I’ll show you a subsidy.
The only alteration I would make to Kennedy’s statement is that all employers, not just corporations, seek to externalize costs. They are just trying to improve their bottom line.
It’s very simple: Employers gain from illegal immigration because illegal immigration increases the supply of labor in the U.S. economy
(by 8 million workers), which in turn reduces the cost of labor in the United States. The lower cost of labor allows employers to hire workers at lower wages and therefore make more money. If it is a small landscaping business, the owner can make more money by hiring workers at lower wages. If it is a large, public corporation, the managers can make more money by hiring at lower wages. Some of the money will go to executives in the form of higher salaries, and some of it may go to the shareholders as higher dividends. Sometimes the employer knows they are hiring illegal immigrants; many times the employer does not because the illegal workers have fake papers (which is a federal crime).
But since 80% of illegal immigrants are low-skilled, they usually earn such low wages that they turn to welfare to make ends meet. So we, the taxpayers, are subsidizing illegal aliens as they break our nation’s reasonable and duly enacted laws. And we, the taxpayers, are subsidizing employers’ increased profits due to lower labor costs. To paraphrase Robert F. Kennedy, Jr. “You show me an illegal alien; I’ll show you a subsidy.” And to paraphrase Kennedy again, “if you are purposely hiring illegal workers, you are shifting your labor costs to the public and making yourself a billionaire while the rest of us pay taxes to provide welfare to your workers.”
And yes, the market is distorted, as Kennedy’s interviewer noted. The availability of welfare benefits to illegal immigrants acts as an inducement for them to come here and accept jobs that Americans would rather not accept because they pay is so low that you cannot take the job without going on welfare.
The taxpayer burden of illegal immigration is a negative externality of the cheap labor employer-employee relationship. It is a negative externality just like pollution is. The concept of the negative externality is at the heart of environmentalism and that is why the NumbersUSA founders were environmentalists before they realized what massive immigration was doing to the United States. Because they were and are environmentalists, they understand that illegal immigration imposes negative externalities on society. But I think that if you put the plain evidence in front of Robert F. Kennedy, Jr. and asked him if illegal immigration imposes a negative externality on society, he would deny it. It wouldn’t be politically correct for him to allow logic to lead him to an honest conclusion.
CHARLES BREITERMAN is a Lawyer and Research Analyst for NumbersUSA
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William7555 of CT
Tue, 04/28/2009 - 5:53pm
New
Re: Robert F. Kennedy, Jr. understands illegal immigration perfe
Who will benefit most from a mass amnesty?
Certainly not the American tax payer.
Amnesty is a guarantee that liberal democrats or RINOs will be in power for the next half of this century.
The Republicans looked the other way to pay off big business.
The fall of Rome looks inevitable
Dave362 of WI
Tue, 04/28/2009 - 2:38pm
New
Re: Robert F. Kennedy, Jr. understands illegal immigration perfe
When Gaylord Nelson said in a 2001 interview with the Milwaukee Journal Sentinel that people who claim to be for the environment but against limiting immigration are phony, he had the likes of RFK Jr. in mind.
Richard6783 of MA
Tue, 04/28/2009 - 12:00pm
New
Then there is your comment
Then there is your comment that "most illegal aliens have their passage money financed by people already here and are preselected on the basis of expectation of payback." Well,under U.S. Code Title 8 Section 1324, it is a felony for "Any person who, knowing that a person is an alien, brings to or attempts to bring to the United States" [illegally]. It is punishable by a minimum of 5 years in prison. So some people already should be doing some serious jail time.
Yes that is what gets me about people arguing for amnesty on the basis of mixed households. It implies a high likelyhood that whatever family broke the conditions of their legal entry and then financed the illegal entry of their illegal alien relative.
The people who are financing illegal immigration should be financing income enhancement and job creation in their old home countries.
John3870 of MN
Tue, 04/28/2009 - 4:25pm
New
Bringing up the name
Bringing up the name "Kennedy" brings to mind Edward Kennedy. Senator Edward Kennedy stood in front of the cameras, last summer, and boldly pronounced all people who oppose his amnesty bill to be "bigots". What a hyocrite. You see "bigotry" is orginally, and is still firstly defined in the dictionary, as "a person who is obstinately or intollerently devoted to his own opinions and prejudices,esp one who regards or treats the members of a group with hatred and intolerance". It is dishonest to give Edward Kennedy a free pass on his hypocrisy and "bigotry" because he is ill. We all are going to die so poor health doesn't excuse irrational/mean spirited/hypocritical judgments. No you cannot be pro-mass immigration and pro-illegal immigration and be pro-environment...period. A pro-mass immigration environmentalist is truly an oxymoron. I have long believed but have been agast to see that many supossidly rational "environmentalist" are neither able to see nor even comprehend the long term affects of mass immigration. This is unchallenged Political Correctness(PC). PC is a lie wrapped in a lie wrapped in self serving and racist/biast power politics. It silences democratic debate with hateful name calling. And it makes the task of protecting what is left of our environment politically impossible because name calling now trumps clear/holistic thinking. Thanks to all those,like Edward Kennedy, who are intellectually blinded by their own politically correct bigorty. Our task goes far beyond immigration issues. I have long said that you'll never solve our many problems if you cannot defeat political correctness by showing it as the mindless dogma that it truly has become. That is not name calling that is just the facts.
Marie5003 of PA
Tue, 04/28/2009 - 8:36am
New
Re: Re: Robert F. Kennedy, Jr. understands illegal immigration p
Most Americans define themselves this way, myself included. This is why, when asked, I say that I am an American.
Richard6783 of MA
Mon, 04/27/2009 - 11:55pm
New
NumbersUSA Moderator: You
NumbersUSA Moderator: You make an excellent point, but one that might pertain more to the people these countries lose through legal immigration.
NumbersUSA Moderator: Through illegal immigration, the source country is getting rid of people who are willing to break laws for personal gain. In that sense, illegal immigration is like many other crimes. Also, what sort of talent and enterprise does it take to cross a border or overstay a visa in intentional violation of another nation's laws and then demand legalization? Is that the sort of talent and enterprise we want to encourage? And what about the people who remain in the source country and are successful there? Are they not talented and enterprising? Then there are the people who remain in the source country and struggle to change things for the better. I think they deserve substantial praise.
It is actually true of both in that most illegal aliens have their passage money financed by people already here and are preselected on the basis of expectation of payback. People who have skills and work experience have an easier time getting financed. Their skills might be low compared with other workers here but are higher than other workers there.
Also their willingness to break law could as easily be applied to Mexican labor law which requires employers to provide an unusually long severance. The requirement to provide a reserve in the formal labor market limits start ups. A systemic disposition towards working with under the table entrance might be replaced by under the table job sites. One employer with 800 employees is more burdened by red tape than a community of 40 contractors with an average of 20 employees each.
NumbersUSA Moderator: Thank you for the interesting information, Richard. If I am understanding you correctly, a Mexican law makes it more difficult to start a business in Mexico ("Mexican labor law .. limits start ups.") It seems to me that they need to change that law. It's not the responsibility of the United States to provide jobs for Mexicans because of their own stubborn failure to change their laws. We have our own problems to take care of and people have been hurt by massive Mexican immigration enough already in terms of lower wages and jobs lost to foreign workers. And if we deported enough people back to Mexico, the government would finally be forced to respond to their unemployment problem instead of exporting that problem to the United States- they would be forced to change that law.
Then there is your comment that "most illegal aliens have their passage money financed by people already here and are preselected on the basis of expectation of payback." Well,under U.S. Code Title 8 Section 1324, it is a felony for "Any person who, knowing that a person is an alien, brings to or attempts to bring to the United States" [illegally]. It is punishable by a minimum of 5 years in prison. So some people already should be doing some serious jail time.
Laurel6425 of IL
Mon, 04/27/2009 - 10:39pm
New
Re: Robert F. Kennedy, Jr. understands illegal immigration perfe
A conservative talk show host today postulated that Obama's real goal is to increase the numbers of illegal aliens as much as possible, then grant them amnesty, before the 2010 Census, thereby redistricting the U.S. into regions that will enable his re-election. If the game plan is to vastly increase the numbers of Democratic voters, Congress won't care at all about unemployed Americans. They only have a short time to act, which is why Schumer will be talking once again about immigration reform this week, and why Obama refuses to close the border despite the swine flu epidemic. Swine flu throws a jinx in his plan, since closing the border would mean limiting the numbers of aliens crossing over.
Duane7810 of TX
Mon, 04/27/2009 - 5:14pm
New
This is unrelated to the
This is unrelated to the above topic....but I just received this email from CA Senator Diane Feinstein that all may find interesting....email content follows: I received your letter and appreciate your support for the electronic employment verification program, E-Verify. I would like to provide an update on the status of this program.
The current E-Verify program operates on a voluntary basis, allowing participating employers to verify if a potential employee is lawfully authorized to work in the United States. On March 11, 2009, the President signed into law the Omnibus Appropriations Act, 2009, which included an extension of the termination date of E-Verify, permitting its operation until September 30, 2009 (Public Law 111-8). $100 million has also been appropriated for E-Verify for the fiscal year 2009 through the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009 (Public Law 110-329).
I share your serious concerns about the loss of U.S. jobs and the impact of the economic crisis on American workers. I support a tough and smart reform of U.S. immigration laws, which includes protecting American jobs, helping businesses maintain a legal workforce, and reducing unauthorized employment in the United States.
I recognize that E-Verify is a priority for you in the debate on immigration reform in the United States. I will certainly be mindful of your support for this program should the Senate have an opportunity to debate this issue in the near future. I invite you to contact my Washington, D.C. staff at (202) 224-3841 if you have any questions or additional thoughts.
Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
End of the Sentor's email.
NumbersUSA Moderator: Yes, this will be the topic for a future blog. There are probably many Members of Congress who are already giving signs to their constituents that they support E-Verify in hopes of turning around and packaging it with some sort of amnesty program in the future.
Elena1163 of NY
Mon, 04/27/2009 - 4:43pm
New
Re: Robert F. Kennedy, Jr. understands illegal immigration perfe
I wonder what would happen if the American people took jobs at lower wages that the illegals (under cut them) and then lived off or welfare and private charities?
PS
The analysis presented is brilliant!
MD2510 of MA
Mon, 04/27/2009 - 2:25pm
New
Great analysis, why is it
Great analysis, why is it always missing in the so called newspapers?
"But since 80% of illegal immigrants are low-skilled, they usually earn such low wages that they turn to welfare to make ends meet. So we, the taxpayers, are subsidizing illegal aliens as the break our nation’s reasonable and duly enacted laws. And we, the taxpayers, are subsidizing employers’ increased profits due to lower labor costs."
I would add to the things that taxpayers subsidize for the low-skilled immigrants - both legal and illegal
a) faster depreciation of the infrastructure investments like roads, water systems, sewer systems that taxpayers have already made and new immigrants enjoy from the very day they arrive
b) value of the US citizenship that they and their children will enjoy forever. It is much like selling additional stock in a company which dilutes the value of existing shareholders. The citizenship itself has an intangible value of millions of dollars per person which the hiring companies do not have to meet but comes from dilution of citizenship.
C.1809 of FL
Mon, 04/27/2009 - 1:16pm
New
Re: Perhaps another
I have often thought and even said if we are to take in immigrants it would be those Honest people who stayed in their home countries,applied Legally,no matter how tough it gets for them while they wait to become part of our USA family.
Coming to the USA Illegally shows contempt for our laws as well as disrespect for USA citzens.Is this the type of people we should welcome to our national family ? I think the answer is very clear.
Even to entertain Amnesty is revolting and a slap in the face to legal immigrants.
Richard2467 of TX
Mon, 04/27/2009 - 12:14pm
New
Re: Robert F. Kennedy, Jr. understands illegal immigration perfe
Great article! However, I have a few questions. They are:
A. Illegal aliens have left our deserts full of human waste, garbage and damaged plants. Where is the EPA? Where is the Sierra Club?
B. By driving vehicles, illegal aliens pollute our air. Where is the EPA? Where is the Sierra Club?
C. Illegal aliens stress our water and land resources. Where is the Sierra Club?
D. Why have politicans flooded our schools with illegal aliens and forced us to spend tax dollars on bilingual education instead of spending all of it on math and science?
E. Why do my hospital district taxes keep rising so that illegal aliens can go to the emergence room and get free health care?
F. If the government is spending billions on benefits for illegals, is the goverment going to restore your 401K?
G. The stimilus bill included $30 million to study and protect the San Francisco marsh rat. However, congress would not make E-verify permanent to protect American jobs. Is a rodent more important than jobs for American citizens?
The madness never ends!
Richard6783 of MA
Mon, 04/27/2009 - 12:13pm
New
Call this number and ask if
Call this number and ask if they have seen this article yet. That is just Monday afternoon.
Professor Robert F. Kennedy, Jr.
Professor of Environmental Law;
Co-Director, Pace Environmental Litigation Clinic
AB, Harvard University
JD, University of Virginia School of Law
LLM, Pace University School of Law
Assistant:
Mary Beth Postman
(914) 422-4343
Office: E-House
Dorothy7665 of NE
Mon, 04/27/2009 - 11:41am
New
Perhaps another
Perhaps another "externality" resulting from illegal immigration might be societal/"human capital" losses experienced by the home countries of the illegal immigrants. Those nations lose talented and enterprising people who might have otherwise remained and contributed to building their economies and infrastructures.
NumbersUSA Moderator: You make an excellent point, but one that might pertain more to the people these countries lose through legal immigration.
NumbersUSA Moderator: Through illegal immigration, the source country is getting rid of people who are willing to break laws for personal gain. In that sense, illegal immigration is like many other crimes. Also, what sort of talent and enterprise does it take to cross a border or overstay a visa in intentional violation of another nation's laws and then demand legalization? Is that the sort of talent and enterprise we want to encourage? And what about the people who remain in the source country and are successful there? Are they not talented and enterprising? Then there are the people who remain in the source country and struggle to change things for the better. I think they deserve substantial praise.
Josh 2226 of FL
Mon, 04/27/2009 - 11:39am
New
Robert, "Eight percent of
Robert,
"Eight percent of illegal immigrants are low-skilled,"
should instead be
"
Eighty percent of illegal immigrants are low-skilled,"
NumbersUSA Moderator: Fixed. Thank you.
Albert3441 of PA
Mon, 04/27/2009 - 11:36am
New
This analysis makes it easy
This analysis makes it easy to see why organizations such as the Chamber of Commerce would support open borders policies and why some Republican Party politicians, closely allied with these interests, support amnesties, guest worker programs, more H1-B visas, etc. But there is another dimension to this issue: racial politics. Forty-years ago, the Democratic Party completed its transition from social contract politics to racial politics. Most racial minorities now vote democratic, but most non-minority voters are alienated by racial politics. So, as more traditional Democratic voters leave the party, the obvious solution is to import a new constituency of poor, racial-minority voters. A large amnesty for illegals would virtually guarantee one-party rule for decades. Of course, there is no national dialogue about either of these phenomena because of the need to enforce political correctness, the shield and buckler of the open borders movement.
Thomas8762 of GA
Mon, 04/27/2009 - 11:23am
New
Re: Robert F. Kennedy, Jr. understands illegal immigration perfe
It always amazes me that so many people are unable to make sound judgements because their minds are encumbered by their political philosophy and political correctness. That is why I have always refused to be called either a liberal or a conservative.
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