Increasing the Minimum Wage: a Modest Proposal

Liberals are constantly whining about the need to increase the minimum wage, which even the most left-wing economist knows will eliminate jobs. But it's too great a temptation for weak politicians and self-absorbed, preening leftist presidential candidates with no ideas worth promoting to demagogue the issue and themselves onto the evening news. A better way to increase the minimum wage exists, however, that conservatives could readily support along with liberals. That is to deport the 15 million illegal aliens now living in the USA. The effects would be multiple, immediate, and beneficial. Let's review what would happen after this deportation. 

Wages would increase

Wages in industries that employ illegals such as construction, hospitality, services, manufacturing, and agriculture would increase because illegals hold wages down. Since these are the very "starter" jobs that our unemployed young people need to get a leg up in life, removing illegals would open up the American Dream to Americans once again, plus increase wages in those very same industries, something liberals have tried to achieve for decades. The wage increases would occur naturally through market forces, something conservatives could enthusiastically support. 

Unemployment would decrease

The best jobs program conceivable is to deport illegal aliens and give their jobs back to Americans. With millions of jobs held by Americans rather than illegals the unemployment rate would plummet. The strong jobs market might even entice many discouraged Americans back to seeking employment once again, increasing the record-low labor participation rate which has plummeted under job-killer Obama. 

Tax revenues would increase

Illegals do not pay their fair share of taxes. With more Americans working at higher paying jobs (per the above), tax revenues would increase dramatically. The U.S. economy would lift out of its tepid recovery mode, the deficit would shrink, and more funding would become available for important national productivity improvement projects such as repairing our aging critical infrastructure and hardening it against terrorists, and providing 21st century jobs training for low-income workers. 

Some prices might rise slightly

You don't need an Ivy League degree to understand the difficulties of living in a deflationary environment, which we are in today due in large part to suppression of price increases caused by illegals flooding into the U.S. economy. As prices flatten and then spiral downwards in a deflationary economy people put off buying decisions, thus reducing demand further and driving prices lower. Deflation is such an acute problem worldwide that national monetary authorities such as the U.S. Federal Reserve, European Central Bank (ECB), and Bank of Japan (BoJ) consider it to be one of their primary challenges. A bit more inflation with illegal aliens out of the economy in the U.S. could be a welcome development. 

There are many other benefits to deporting the illegals that are beyond the scope of this brief note, such as balanced state budgets; drastically lowered spending on bloated social programs of dubious benefit; and reduced crime, drugs, gangs, terrorism, disease, prison congestion, hospital emergency room overcrowding, failed schools, abortions, out-of-wedlock births, and a host of other social problems. Perhaps it is time for our elected representatives in Washington to quit making such a big racket about working across the aisles, and actually do something like taking a fresh bipartisan approach to raise the minimum wage the old fashioned way -- deport illegal aliens. 

Liberals are constantly whining about the need to increase the minimum wage, which even the most left-wing economist knows will eliminate jobs. But it's too great a temptation for weak politicians and self-absorbed, preening leftist presidential candidates with no ideas worth promoting to demagogue the issue and themselves onto the evening news. A better way to increase the minimum wage exists, however, that conservatives could readily support along with liberals. That is to deport the 15 million illegal aliens now living in the USA. The effects would be multiple, immediate, and beneficial. Let's review what would happen after this deportation. 

Wages would increase

Wages in industries that employ illegals such as construction, hospitality, services, manufacturing, and agriculture would increase because illegals hold wages down. Since these are the very "starter" jobs that our unemployed young people need to get a leg up in life, removing illegals would open up the American Dream to Americans once again, plus increase wages in those very same industries, something liberals have tried to achieve for decades. The wage increases would occur naturally through market forces, something conservatives could enthusiastically support. 

Unemployment would decrease

The best jobs program conceivable is to deport illegal aliens and give their jobs back to Americans. With millions of jobs held by Americans rather than illegals the unemployment rate would plummet. The strong jobs market might even entice many discouraged Americans back to seeking employment once again, increasing the record-low labor participation rate which has plummeted under job-killer Obama. 

Tax revenues would increase

Illegals do not pay their fair share of taxes. With more Americans working at higher paying jobs (per the above), tax revenues would increase dramatically. The U.S. economy would lift out of its tepid recovery mode, the deficit would shrink, and more funding would become available for important national productivity improvement projects such as repairing our aging critical infrastructure and hardening it against terrorists, and providing 21st century jobs training for low-income workers. 

Some prices might rise slightly

You don't need an Ivy League degree to understand the difficulties of living in a deflationary environment, which we are in today due in large part to suppression of price increases caused by illegals flooding into the U.S. economy. As prices flatten and then spiral downwards in a deflationary economy people put off buying decisions, thus reducing demand further and driving prices lower. Deflation is such an acute problem worldwide that national monetary authorities such as the U.S. Federal Reserve, European Central Bank (ECB), and Bank of Japan (BoJ) consider it to be one of their primary challenges. A bit more inflation with illegal aliens out of the economy in the U.S. could be a welcome development. 

There are many other benefits to deporting the illegals that are beyond the scope of this brief note, such as balanced state budgets; drastically lowered spending on bloated social programs of dubious benefit; and reduced crime, drugs, gangs, terrorism, disease, prison congestion, hospital emergency room overcrowding, failed schools, abortions, out-of-wedlock births, and a host of other social problems. Perhaps it is time for our elected representatives in Washington to quit making such a big racket about working across the aisles, and actually do something like taking a fresh bipartisan approach to raise the minimum wage the old fashioned way -- deport illegal aliens.