We recently suggested that the United States economy is not a “real” economy, but rather a “fake” one, and that government data-manglers paint false pictures of economic vigor. Reader J.B. accused us of unfairly targeting the Biden administration, but we must clarify that we have also criticized the previous administration’s fiscal policies. In fairness to Mr. Trump, he inherited a troubled economy due to factors beyond his control.
Reader U.O. questioned our lumping together of government jobs with healthcare jobs. The author’s main concern was not the jobs themselves, but their source – illegal immigration. Reports indicate that illegal migrants cost taxpayers $450 billion per year, with a significant portion of that funding going towards their care and maintenance.
The late Milton Friedman once argued, “You can’t have free immigration and a welfare state.” We believe there is merit in this argument, but the U.S. government seems determined to prove otherwise. The government’s approach to immigration has shifted from the “sink or swim” mentality of the Ellis Island era to a more accommodating stance towards the Rio Grande caravans.
We harbor no ill will towards the migrants themselves, as many are simply seeking better lives. However, we question the financial burden placed on taxpayers. The Heritage Foundation found that in 2010, illegal households imposed a net burden of $54.5 billion per year. The Center for Immigration Studies also reported that even legal immigration can be a net drain on the American taxpayer.
Mass immigration may also drive down wages for those on the lower end of the wage scale, including native Blacks and Hispanics. We are not against free trade or all immigration, but we must consider the financial implications of mass migration.
In the spirit of Milton Friedman, we propose a compromise: allow immigration, but end the welfare state. If we cannot agree on this, we risk becoming a nation of “damned broke fools.”
Let us know what you think, please share your thoughts in the comments below.
