ILLEGAL IMMIGRATION. WHY IT'S BAD FOR YOU AND A BOON FOR ANTI-CAPITALISTS.

All need to stop parroting idiotic phrases that support the false belief that illegals will take the work that Americans won't do. Those who parrot such idiocy only support those who favor illegal aliens.



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

The two equations express the same thing. Wages are sales of work for pay through time as Sales are sales of product for payment through time.

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.

As taxes are an unearned share of profits swiped by lawgivers, Americans can't get out of their compulsory taxes. Income taxes leave legal Americans with lower wages on higher wage rates than illegals because Congress and state legislators swipe a giant chunk of the wages of legal Americans.

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.

As I have shown you before, no one will work at a loss. Americans won't work at jobs where the pay rate fails to cover costs (i.e., living expenses).

• 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:

1. Firm operators caught employing illegals should have their assets confiscated and sold off at auction.
2. 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. 
3. 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.

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PRICES HAVE BEEN FALLING FOR YEARS! INFLATION? MAJOR DEFLATION HAS BEEN UNDERWAY SINCE 2007. SO WHY DOES LIFE SEEM HARDER? THE ANSWERS ARE COMING NEO.

In THE CONSUMER PRICE INDEX NEVER HAS MEASURED INFLATION, EVER. CLAIMING SO HAS BEEN A EPIC CON JOB, I show how the  "the most widely used measure of inflation," the Consumer Price Index (CPI), fails to measure inflation precisely because those behind it measure prices and not inflation. 

The worst is the jokers at the BLS who conjure the CPI measure current inflated prices by a base of past inflated prices. Stop. Think about that for a moment.

With their failed method, they cannot eliminate the effects of inflation. In short, the CPI is bunco.

Milton Friedman was a famed economist, popular writer and winner of the Nobel Prize in Economics back in 1976. Friedman is famous in egghead circles for having said:

"Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output." 

Edwin Walter Kemmerer was a famed economist, a man known as "the money doctor." Kemmerer said this about inflation:

Friedman and Kemmerer point the way. Here is the Red Pill that you must swallow if you want to free yourself from the silly, false belief of rising prices means inflation. 

You must come to see that you do not have money. No one does. 

Instead, you have Federal Reserve Bank Units (FRBUs), or if you like better, Federal Reserve Buying Units. FRBUs are what pay for goods. All goods get priced in FRBUs. 

Money is coined metal by weight and fineness. Always, money can exist without banking and government. Cash only can exist with banking and banks. Legal tender cash needs banking backed by the force of government.

In the fiduciary monetary system of centralized bank notes, inflation is merely the growth of the circulating media — cash, which is evidence of past deposits circulating in perpetuity and bank credit in the form of checkable deposits transferred by bank instruments such as checks and debit cards.

Thus, to know reality and escape the Matrix requires you to account for inflation by FRBUs and by no other way. The FRBU deflator is our red pill to see reality. 

INFLATION FIRST, THEN DEFLATION ALWAYS. 

Inflation happened already. That is what led to the banking crisis of 2008.

The damaging effects of inflation become revealed when the growth of credit outstrips the growth of output owing to credit being priced too cheap. Banking crises always happen at peak inflation right in the midst of prosperity.

Have a look at true credit and true GDP.

Since 2008, true bank credit has been falling. True GDP has fallen right along with the fall in bank credit. The fall of bank credit means deflation has been underway. 

True bank credit is down -43.4% from peak credit at the start of Q2, 2008. True Credit has been falling at an annualized rate of -9.1%.

True GDP has been falling and falling. True GDP is down -42.8% from the peak! True GDP has been falling at an annualized rate of -8.9%!

That's a trade depression. Look at it. I call it the Greatest Depression.

AND FALLING PRICES, IT'S TRUE

So let's have a look at true prices, shall we? Prices have been falling for decades since before peak credit. 

Say what?! Yes, it's true. Once the effects of accretion of FRBUs get removed using the FRBU deflator, we get true, inflation-free prices. 

First let's look at food and energy.

It's no wonder chief bankers at the Federal Reserve exclude food and energy from their watch. Yet, always, you hear many decry that your friendly neighborhood Fed Res bankers ignore food and energy prices.

Now, let's look at house prices. 

House prices went on quite the roller coaster ride between 1980 and 2013. Yet, the average price for a house today is lower than in 1980 by 36%! 

Interestingly, the average house price to income has averaged $6.63. The 2012 ratio of $6.44 is under 3% from the average.

Yet, there is a fly in the ointment, which I shall get to soon, the fly on the wall that explains why you suffer.

But first, here is the ugliness that many Americans understand. Tuition prices have risen a whopping 85% since 1980!

WHY MISERY IF PRICES ARE FALLING?

So why do Americans feel so miserable and claim to be broken financially? Well, there is good reason for that too.

A wage is a price and as all prices have been falling, so too have wages fallen.




The average wage has fallen 41% since 1980!




So why have true wages fallen? All should heed my dictum:

Labor makes property. Capital makes property efficiently.

THE CHART SOCIALISTS AND POLITICIANS DON'T WANT YOU TO SEE

True wages have fallen in lockstep with true capital spending per capita of prime age working adults (25-54). Wages and capital are interlinked.

Trading wealth as property in cash and credit in a purchase and sale for wealth as property in things determines the extent of markets. Only in proportion as labor becomes pricier that it becomes profitable to use cheaper methods (capital) to amplify labor.

There are no means by which living standards can better that do not involve the increase in wealth per capita of prime age workers. Increasing returns to capital arise when true wages go up. To discover how to make increasing returns to capital is to solve the problems of poverty and lowering living standard. 

As can be seen here, the growth in prime age working adults in America has been tremendous, up 45.3% since 1980.





And not-so-coincidentally, wages have fallen 41% and capital spending has fallen 49.5%!





Born-again socialism revivalist preachers like Thomas Piketty who attack wealth simply do not understand trade and commercial life at all. 

Having more wealth is what makes all better off. More wealth comes from more efficient production. More efficient production comes from more capital.  More capital spending per worker raises wages. 

While the living standard in America has been falling, the living standard for Chinese has been rising. Why is that? There has been more capital spending per worker in China since the Chinese turned capitalist.

It's the same story everywhere.

Be sure to check out these:

• WHY IS THE ECONOMY SO HORRIBLE? BECAUSE ACADEMIA ECONOMICS IS FAKE.
• WORK NEVER CREATES VALUE. WORK CREATES PROPERTY.
• INFLATION REVEALED! "REAL GDP" AND FEDERAL RESERVE BANK UNITS.
• THE THEORY OF TRADING PROPERTY FOR PROFIT
• FALLACY FRAUGHT FORBES TRIES TO STOKE FEARS OF HYPERINFLATION

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