The standard liberal argument for allowing illegals to remain in the U.S. is that they do the work that Americans wont. However, in a look at the latest jobs report that came out on Friday, the sad reality that many conservatives feared has now taken place. Most jobs in the ‘New Economy’ aren’t going to American citizens, but instead to foreign workers. And by a margin of over 3 to 1.
It began with corporatists like Bill Gates calling for the government to increase H1B visas to allow foreign workers in to fill high-tech positions in computers and engineering. But just last week a report came out that Disney not only hired foreign workers to replace American workers, but they also ordered these employees to train them so that they could take over their positions at a much lower wage.
In other words, the “foreign-born” catogory includes both legal and illegal immigrants unfortunately, the BLS is unable, or unwilling, to distinguish between the two.
As a result, it may well be, that the surprise answer why America’s labor productivity (which recently posted its worst 6 month stretch in 22 years) has plummeted in recent years and certainly months, confounding economists who are unable to explain why “solid” labor growth does not translate into just as solid GDP growth…
… and why wage growth has gone precisely nowhere, is because the vast majority of all jobs since December 2007, or 75% to be specific, have gone to foreign-born workers, a verifiable fact. What is unknown is how many of these millions of “foreign-born” jobs have gone to illegal immigrant who are perfectly willing to work hard, and yetwhose wage bargaining power is absolutely nil (after all they are happy just to have a job) thereby leading to depressed wages for native-born workers in comparable jobs, resulting in wage growth which over the past 8 years has been non-existent. – Zerohedge
So… the great ‘jobs recovery’ has really been in fact, a recovery for corporate America and a continued spiral downward for the American people.
Graphics courtesy of Zerohedge and BLS
In addition to most new hires being foreign and/or illegal workers, those in the highest level of need, the 35-54 year segment, are negative for job creation over the past several cycles. This segment is the primary one that supports GDP through their consumer spending, family growth, and investment/savings.
Welcome to the new normal in America. Low paying jobs that are filled by foreign workers and where American workers are kicked out and replaced by non-Americans who will work at a cheaper wage.
Have to love the recovery don’t ya?
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.