Illegals can underbid Americans on wages for the same work done because illegals face a different break even than U.S. citizens and legal residents face. It's really that simple.
The lovers of illegals, whatever their agenda — typically socialist, liberal, progressive, pseudo-libertarian — will claim Americans are lazy. Thus, they will claim illegals will do the work Americans won't do.
Being illegal means illegals don't pay income taxes to anyone. Whether from Mexico or elsewhere, illegals beat Americans at wage auctions precisely because they are illegal.
Income taxes are the biggest expenditure of every American. Even if illegals pay the same living costs as Americans, illegals can accept lower wages for the same work because they don't pay income taxes.
Political supporters of illegals need to show the world they can bend the laws of mathematics. Of course, they cannot do so. The pro-illegals advocates can't beat the math.
A firm faces this: ƒ (Break even) = Sales - Costs
A individual faces this: ƒ (Break even) = Wages - Costs
So when you compare the break evens for illegals to Americans, you get this:
ƒ (Break even Illegal) = N × Wages - Costs
ƒ (Break even American) = (Wages - Taxes) - Costs
where N < 1.0, N × Wages > Wages - Taxes
Because wage-earning Americans must pay income taxes — that is what being legal means — Americans have higher break evens than illegals since illegals don't pay income taxes.
Worse, American workers must pay income taxes on Gross Sales while American businesses pay income taxes on Net Sales, which in itself is a scam on Americans. That means, individuals must pay taxes to Congress and their states before they pay their costs (living expenses).
Americans can't even can buy a loaf of bread to eat until they pay Congress and their state legislators income taxes. However, illegals don't suffer the same penalty.
Even when illegals bid at lower wage rates, their wages are higher because they keep all of their wages. And if they have kids in America and collect welfare, their incomes are even higher.
• POVERTY AND ENVY
• BUT I SPENT 150 HOURS HANDCRAFTING THAT OIL ON CANVAS! OR THE LABORER'S SILLY THEORY OF VALUE
• LIVING RHETORIC TO GET AN UNEARNED PAY RAISE
Legal wage-earning Americans are subsidizing illegals and those who hire illegals. Without these subsidies, there would be no advantage to hiring illegals. Illegals simply wouldn't come here.
At 4:02 in this video below, famed monetarist economist, the now-deceased Milton Friedman spews the fallacy of "they take jobs that most residents won't do." Friedman parrots a stupid belief, a mindless mantra that immigrants come to take the work Americans won't do.
Milton Friedman was a theory-reading academic and not a profit-and-loss businessman. So Friedman fell for the "Americans are lazy" big lie.
Easy-to-understand math proves wrong Milton Friedman and proves wrong everyone who believes as Friedman does.
So what should Americans want to happen? There must be three fixes in law:
- Firm operators caught employing illegals should have their assets confiscated and sold off at auction.
- Even when a child is a U.S. citizen, only U.S. citizens and legal residents should be allowed to file for welfare on a child's behalf. The adult filing for welfare for a child should be forced to prove legal residency status.
- Legal immigration should be temporarily stopped during every recession.
Illegal immigration is a boon to anti-capitalists.
For the firm operators who employ illegals, they enjoy unearned profits. Without illegals, many would be forced to exit the field of competition, shrinking supply and raising prices for those who produce efficiently with capital.
Illegals act as an anchor pulling down wages for everyone else on the wage-scale ladder precisely because the swell of working age population negatively effects the return on capital.
Flooding a country with illegals suppresses capital spending because enterprisers can't get suitable returns to capital in the face of cheap labor. With capital spending suppressed, wages are suppressed. All of that causes an economy to go into a death spiral.
Have a look at the chart socialists and politicians don't want you to see and the chart that shows economists don't understand commercial life:
Heed my dictum: Labor makes property. Capital makes property efficiently.
Workers can better themselves only so far before hitting the wall of efficiency gains. For substantive gains in production requires capital. Only when returns to capital are increasing will anyone take his property and put it to production.
Where you find no capital, you find no wages — many Africans live this way. Where you find many workers, even in the face of some capital (per capita capital low) you find low wages — the Chinese and Hindians live this way.
If anyone supports illegals, then why have any laws? Why have any property laws? Why have patent laws? Why have copyright laws?
For those supporting illegals, why not let someone take your car if they want to use it to drive to work? Why should law exist to justify others stopping car thieves on your behalf?
If you're going to have a sovereignty, you cannot have unfettered immigration, illegal or legal. Legal immigration should be restricted so that the foreign-born population never exceeds five percent of the total population in any year.