Quote (Thor123422 @ Oct 20 2019 07:09pm)
Let's not pretend it's a Democrat versus Republican issue. Neither side is for enforcing employment laws on these companies. It's just that one side likes to pretend they are giving solutions while proposing solutions that will address no part of the problem.
One solution is restriction of immigration including legal immigration, something Democrats vehemently oppose and i say this as an immigrant.
It's pretty clear what happens when you understand the mechanics. Immigration (both legal and illegal) suppresses wages for the natives to some degree. The reason why you have so many economists in favor of immigration because the producer surplus (essentially the businesses & employers) far exceeds the losses to the employees surplus.
So quick little example, native worker surplus is 5 while producer surplus is 8 before immigration for a total surplus of 13. Now post immigration, worker surplus drops to 4 (it makes sense, higher supply of labor leads to a lower wage equilibrium if demand doesn't increase proportionally) while producer surplus goes to 12.
12+4= 16 Which gives an overall higher total surplus than pre immigration. Whats largely ignored is the native surplus. It's swept aside because we can just say 'well overall surplus is higher, therefore good' when in reality it's the business owners who are reaping the benefits. This is what has largely happened in the US. The reason the median income per household flat lined is precisely because we either off-shored labor or we import labor. Combine that with creative destruction of tech and you get the issues of today.
Corporate profits soared in the last 30 years while wages moved up at a snail pace. More people out of the labor force. More people in debt. More people living paycheck to paycheck, home ownership rates are flat after dropping by bunch, etc.
But hey, why confront the real reasons right. I mean why can't we just all get a long only bigots are against immigration!
This post was edited by ofthevoid on Oct 20 2019 05:34pm