The Corrupt Economics Of Immigration
Immigration and Economic Growth
Supporters of the Democratic Party's open borders policy often argue that immigration boosts the economy. For instance, David Bier of the Cato Institute recently stated that the Congressional Budget Office predicts a $7 trillion boost to the economy and a nearly $1 trillion reduction in federal debt by 2034 due to immigration. While this may seem impressive, it pales in comparison to the expected cumulative GDP of the United States over the next decade, which will likely exceed $300 trillion. Nonetheless, it's not incorrect to say that immigration contributes to GDP growth.
Quality of Economic Growth
However, what is often overlooked in these analyses is not just the quantity of economic growth caused by immigration, but the quality of that growth. Supporters of free trade often fail to consider the challenges faced by our manufacturers when competing against subsidized imports manufactured without the environmental and labor standards applicable in the United States. Similarly, calls for the abolition of residential zoning laws often ignore the subsidies and tax incentives that incentivize developers to demolish homes to build apartments.
Immigration and Government Subsidies
When it comes to immigration, the call for open borders often overlooks a critical prerequisite: immigrants should not receive government subsidies or special benefits. They should be able to support themselves immediately through private employment. However, modern immigration to America offers new arrivals a range of taxpayer-funded benefits often exceeding what is available to the average American citizen. This creates incentives for mass migration that would not otherwise exist.
Corruption in the Housing Industry
The economic processes at play in cities like Springfield, Ohio, have led to a system strikingly similar to what has been termed the Homeless Industrial Complex. This system involves a network of government contractors, tax-sheltered NGOs, and public agencies that contribute to making the cost of living unaffordable for America’s working families. California is a prime example of this corruption.
California's Homeless Crisis
California's inability to address its homeless population, which has now risen to an estimated 186,000, is largely due to a corrupt alliance between government and politically connected corporations. The growth of state regulations on home construction, excessive local permit fees, protracted building approval processes, and the near total ban on urban expansion have made it impossible for unsubsidized developers to build affordable homes.
Impact on Immigration Policy
This corruption also influences America’s immigration policy. Policies that began in California, such as restrictions on growth, excessive regulations, and increasingly elaborate building codes, are now spreading across the country, driving up the cost of building homes. This, combined with immigration, exacerbates America’s housing shortage, driving prices up even further.
Corruption and Immigration
This corruption is not accidental. It benefits a powerful coalition of players including investors, corporations, developers, NGOs, government agencies, and environmentalists. It also appeases socialists due to the central role of government regulations and subsidies.
Libertarian Perspective
Libertarians should be aware of this issue. Open borders are only feasible when there is no welfare state awaiting new arrivals. The economics surrounding immigration reflect a corrupt system that libertarians often fail to acknowledge or fight against. This system results in a massive transfer of wealth from America’s lower-income and middle-class communities to the hands of an oligarchy, which is not a healthy version of capitalism.
Unhealthy Economic Growth
This is also not healthy economic growth. That politicians like Kamala Harris have managed to sell this betrayal to the American people as necessary to solve the twin crises of “climate” and “equity” is a significant deception.
Bottom Line
The economics of immigration in America today are deeply entwined with corruption, benefiting a powerful coalition at the expense of lower-income and middle-class communities. This is not a healthy version of capitalism or economic growth. What are your thoughts on this issue? Share this article with your friends and sign up for the Daily Briefing, which is every day at 6pm.
