CTH reader “Charles” asked a great question yesterday that deserves some expansion:
CHARLES: “I’m having some trouble parsing how exfiltrating [deporting] illegal alien workers thereby pushing American wages upward can cause a decrease in inflation. Conventional wisdom for my whole life (73 years) has held that increasing labor costs drive inflation upwards.”
It’s a great question because Charles is essentially correct from a historical reference. However, we are in uncharted territory due to the scale of illegal aliens within the U.S. economy in this modern era. The answer is a commonsense theory currently playing out in real time.
ANSWER: A much larger percentage of illegal aliens live on various subsidies and govt spending programs than our native American population. As a result, it’s like govt spending, except we have ten million people spending excessive govt money instead of one big spending bill.
The underlying economy is inorganic and detached from traditional cause and effect. In this dynamic when you deport the illegals, we are reducing the govt spending. Less govt spending actually tames inflation and lowers housing costs at a greater rate than the upward pressure on wages.
Removing the ‘free govt money” from the economy, creates less upward price pressure. Additionally, deporting the govt spender reinstalls a more authentic supply and demand economy, because the current demand is skewed by all the ‘free money’ subsidy spending.
Charles is correct in that within his 73-years this was not evident. That’s because we have an unprecedented number of illegal aliens spending govt money without any economic productivity. Those subsidies, extra non-productive money in the economy, creates upward price pressure. Take the money away and prices drop.
It’s the same issue we have always had with supplemental food assistance programs, and entirely the reason why Barack Obama exploded the number of people eligible for food stamps and SNAP benefits.
This is also why Big Ag and big corporate food conglomerates always lobby for increases in food subsidy programs. It enables them to charge more money and make bigger profits.
Think of it like shopping in a grocery store. Perhaps 50% of the customers pay for their purchases with wages, 50% of the customers pay with govt subsidy. Everyone from the field to the store can charge more money. The retailer can charge more for the products because half of the customers are essentially disconnected from feeling any impact.
Take away or lower the ‘free money’ subsidy, and food prices start to return to a more traditional supply/demand scenario.
Take the “free money” illegal aliens out of the spending economy and you increase the percentage of authentic, actually productive money earned from wages being spent.
Now, to be fair, there is a point at which the price pressure from the rate of spending drops below the upward pressure from the rate of wage growth. Once that apex is crossed, the wage growth can naturally drive inflation; Charle’s traditional frame of reference. However, due to the scale of spending by illegal aliens, we are a long way from the point at which that happens.
Right now, my best guess is we can likely remove 10 to 15 million subsidized illegal alien spenders, before we reach the point where upward worker wage pressure starts to exceed the downward price pressure created by removing ‘free money’ spending.
And yes, we are in uncharted territory. Traditional economic references don’t work. This is one reason why America-First MAGAnomics is defying all the traditional economic analysis. Tariffs do not increase consumer prices; at scale they decrease producer margins. Deportation doesn’t drive inflation; at scale removal actually lowers prices.
Hope that helps.
~ Sundance
It’s why I read CTh. 👍
For some time now, I have been commenting elsewhere that the federal government’s sending of free money to illegal aliens and pumping it into the economy was creating its own economic “physics”. And when President Trump started turning off those sources (USAID, NGOs, Biden handouts), the changes within our economy would be substantial.
This article seems to echo the same logic.
You should know by now that commenting elsewhere is pointless. Just kidding!
You know, the illegal immigration is the red herring. We are trying to describe a tree in a huge, dying forest infected by insects and disease. When the politicians cry out about their nannies and landscapers, they are really just trying to protect the system that has funnelled trillions of dollars out of the hands of our hard working middle class. A system founded, not just on lies to get elected, but on corruption on such a scale that any opposition or even questioning, must be… MUST BE … crushed. Virtually every institution has been compromised. What a rabbit hole to go down.
Sticking with the big picture: Inflation, interest rates, $39 trillion in federal debt, numerous states and big cities virtually bankrupt. It’s all caused by corruption. At the very fundamental construct of society, no individual should impose a debt on another especially when no benefit accrues. When an elected official imposes a debt on future generations, no amount of prose or philosophy can erase the immorality. But with all the institutions so thoroughly corrupted, that immorality can be concealed. Which reminds me of Abe Lincoln’s quote: ” You can fool some of the people all the time and all of the people some of the time, but you can’t fool all the people all the time.” And that is the gist of this paragraph. Understand the basic principle to overcome the false narrative.
Going back to the big picture: Much is made of the Federal Reserve and its influence on interest rates and even the employment numbers. Actually, inflation is the result of a devaluation of a currency. That is caused by government borrowing and spending beyond its capacity to extract hard earnings from the economy. The Federal Reserve is just the outrigger on a sail boat and the sail boat is overloaded and willfully setting off into stormy seas. Our elected officials have set the course to inevitable destruction of future generations while they party at our expense.
Now I need to focus and bring the point home: The illegal immigrant “story” is really that it is just a receptical for the massive money laundering of some very powerful entities. The illegal immigrants are just the slaves picking cotton for the plantation. And that is just one of many “stories” whether the military industrial complex, or propaganda complex (media and education) or any government program.
Rant over. Time to pray:
Nevertheless Lord, Thy will be done.
Thank you Lord. Thank you Lord. Thank you Lord
Thank you for my limitless blessings.
Thank you for my problems.
Thank you for a warrior president. Please guide and protect him.
It’s why EVERYONE should read CTh.
If we look at the surge of immigration since the 80s it has paralleled a massive increase in inflation. So much for cheap labor driving down inflation. President Trump’s first term saw a large decrease in both, his second term has already shown a marked decrease in both as well. The old “truths” purported by the “experts” over the last 50 years has been politically and control drive nonsense.
“massive increase in inflation”
Every person that doesn’t receive welfare pays for immigration and illegals directly everyday though inflation.
It’s an abomination that any non-citizen gets any gov’t subsidy whatsoever.
And a significant amount of our property taxes pay for public education for illegals. This should all end! Get rid of bilingual education from all public schools.
Amen
To keep pulling that thread, the illegal immigrant children pull resources from a fixed annual education budget.
How? There is only so much money in a school’s annual budget. When you have more children who don’t speak English, you have to hire more ESL teachers who typically have much smaller classes.
To make up for cost of ESL teachers, the school district cuts back on core studies teachers, which affects American kids. An English, Math, Science or History teacher then gets classes of 30-35 plus students, making it very difficult to teach due to increased workload and usually more discipline issues.
Then, after a few ESL classes, the school starts mainstreaming the illegal immigrant children because they have such a backlog of kids needing ESL. A teacher has a curriculum to complete by the end of the year, has abnormally large classes and now has students who can barely speak, read or comprehend English. A recipe for classroom disruptions, not to mention slowing down the pace of instruction which leads to unfinished curriculum goals.
That leaves every kid in the class behind.
It leads to frustrated teachers who already have so many restrictions placed on them when it comes to discipline. It leads to a very high attrition rate which leads to a teacher shortage. (After all, the pay ain’t that great.) Which is where we are now in many states and communities.
I have been in schools in rural areas with immigrant populations over 50%. Imagine the dominio effect of that on a poorer rural school system. Inner city schools struggling with large immigrant populations are probably in worse shape.
Good point re property taxes. In the communist state of Washington my property taxes have gone up 30% over the last 4 yrs. Enough is enough. Decided with some fairly high medical costs in 2025 related to my wife’s death, I would also stop my pension payments to get my income below the threshold for reduced property taxes. There is no reason as a property owner I should have to pay for that state’s ridiculous leftist sanctuary policies which include educating invaders.
The new property taxes get mailed on February 14th every year. On February 10 there is a special election to increase my property taxes by 2.36% because the schools need more money because they have so many kids that don’t speak English. This will add $12,500 in new property taxes to my home here in Washington State. My taxes were $1600 a year 7 years ago. Now they are $7200. We are being priced out of our home. I retire in 4 years. Then we are selling everything and moving to Montana. I have never voted for a Democrat in the 42 years I have been voting.
I am in a reflective mood today…
Economic consequences, yes.
What about the cost in terms of lives destroyed?
I couldn’t possibly count the number of stories or articles I’ve read of the terrible price paid by our citizens of all ages who were simply getting on with theirs who aren’t here with us anymore. And the families left behind to pick up the pieces for the rest of theirs.
And here comes another “bipartisan” attempt to grant amnesty to a monstrous class of criminals who have ripped the hearts out of our entire nation in one way or another.
All of it sickens me.
Just one American citizen crime victim at the hands of an illegal alien is unacceptable and proves the failure of Our unrepresentative uniparty gov’t. Local, state, federal… all of it.
Self interested first and morally bankrupt.
Amen Betsy!!!
💕
Routinely bought new cars late 70s- early 90s. Last new car I bought was a 1995 Mercury Tracer Wagon.
We want our slaves damnit….
At least back then the slave owners bore the full cost of housing and feeding their slaves. But now a days the rest of us get to subsidize Ms. Salazar’s slaves, that’s why she loves it so much.
Wow … whole new perspective to democrat slavery using their own money, then … to democrat slavery stealing tax-payer dollars, now
Rev. Mariann Edgar Budde
“Have mercy on these people, Mr. Trump. We need them to clean our toilets and pick our food.”
She’s not a racist at all.
LOL
Becca Balint,rep from Vermont, said “we need them to wipe our asses” she is a horrible woman. Pray for us in Vermont who have been colonized from outsiders
Beautiful Vermont!
For a LONG time.
Miami republican.
Fool.
She sounds like an 1850’s Democrat. I despise RepubliCons.
Imagine the hubris it takes to relegate whole groups of people to be nothing more than slaves and servants.
Unlike the Southern state slaveholders before the civil war, modern day slave holders want the nonslaveholders to subsidize their slaves via welfare and other handouts.
A Republican!
See above post.
Wonder if a visit from ICE is needed???
This could be something out of The Onion.
I can imagine her household “staff”….
I watch how the person in front of me pays for their groceries. Last week two older Hispanic men, dressed fairly well in American clothes-Reeboks, jeans etc., and a Merccedes-Benz baseball cap. That caught my attention. He swiped his EBT card and paid the remainder in cash. I watched him go to his Mercedes sedan and put the groceries in the trunk.
Never have I been thanked by the person in front me for buying their groceries- Never.
That is not figured into the “cost of eggs.”
If cheap labor is the key to keeping inflation at bay, then let’s bring back slavery. Abe Lincoln referred to eating the bread of someone else’s labor of his hands. That is what we have, under the guise of charity and compassion, the working stiff has his wages stolen. Abe Lincoln’s father, a farmer, had to compete with slave wages.
I will drive her to the airport.
I forget where I first read it, but always kept it in mind. When voting, ask yourself which candidate is capable amd willing to fix their own toilet.
Truly rude and demeaning to these people about whom she is talking!
You’re here illegally, but we want to “use you”…
Makes one sick!
However! We keep The FAITH!
Thank You, Sundance, continued BLESSINGS
And there it is…
“The Dignity Act”….
Legalization….as in Spain.
As night follows day, then citizenship. Let’s don’t kid ourselves. Making a mockery of every single person who wanted desperately to come to this country legally, who followed all the rules, who paid all the money, and then waited their turns for the privilege….
Like my British husband.
I have no printable words for this reprehensible woman.
Contemptible.
I asked GROK to make a video Obama,Hillary and AOC , Schumer picking strawberries,GROK does not show AOC+Schumer accurately
https://grok.com/imagine/post/7c8ef74e-7e47-48e9-956d-47a9b2d3e9f2
I agree, but I would express it in a simple supply/demand way. Fewer eaters (lower demand) chasing the same supply of food (supply) results in lower prices. When supply stays the same, a drop in demand also drops prices. And it applies to everything. Rents in some area are decreasing as well. Gotta move those products, and prices will drop until they do. Remember the Bud Light fiasco? They dropped prices to 0 to try to move it.
Some folks worry what will happen to processed food supplies if we take all the illegals out of the processing plants. If one plays it out, one quickly realizes the answer is “nothing.”
You and SD said essentially the same thing. Fewer people AND fewer government dollars chasing the same limited supply..
yes
One thing I am groping to understand is the reliability of the Milton Friedman view that inflation is solely a function of money supply.
The people who cling to it always have patent answers.
Autopen did have massive excess COVID spending. Started under Trump without inflation. Expanded under Autopen with massive inflation. And it was money we did not have.
But how come prices aren’t dropping down yet years after the increased spending?
Autopen also jacked up energy costs making everything more expensive.
Trump is easing energy prices and fighting inflation but also fighting the fed.
In the mean time this new explanation combines reducing government excess money with traditional supply and demand.
We may be in a new realm that requires new theories. Like when we broke the growth/inflation model with stag flation.
After all, all immigration used to require the ability to support one’s self or a guarantor of support. Spending massive amounts of government money to recruit, transport and support migrants is new. But, it is happening all over Europe too.
Worse, this is deeply fraudulent and the fraud has widely expanded. Fraud has to be the most inefficient way for government to spend money. All of our government spending is highly suspect for fraud, not just in Minnesota.
When the government chooses sides against the American people and gets in the way of life, liberty and the pursuit of happiness, you have inflation!
President Trump has been working to put America First – that is, the American people, first – and in that way, he is clearing out the vectors of the disease known as inflation.
What President Trump did about institutional entities such as Black Rock buying up housing is an excellent example!
The dems and autopen-inc. created the problem.
Opened the gates, printed the money, etc.- and
Broke practically every law in an attempt to kill any opposition- literally.
We’re in the struggle for our country and civilization.
Greedy so and sos raising the prices on their stupid garbage and snacks also has the “unexpected consequences” angle of people saying, “Fine, I don’t need that garbage in my kitchen, won’t be feeding it to my family, we will be growing our own ‘Victory Garden’ veggies.”
I have heard the theory about the tobacco companies getting into the processed foods – snacks – and if I understand correctly, they are using the technology acquired in tobacco to apply to snacks – I am not sure what this means, if they do things to make the snacks addictive in some way –
I tell you, my Mom and I were visiting a friend in a rehab facility in Rancho Mirage where she was recuperating from a broken hip – Mom and I went to the lounge a few times to get Diet Cokes and snacks from the vending machine – beware of those Fritos with the chili flavor – I found myself wanting another little bag and then another little bag and when I sat down and thought about those Fritos Chili Corn Chips I was feeling an odd longing for a cigarette, which seemed ridiculous – this was happening in 2019 and I had quit smoking on December 9th in 1980, cold turkey – then quit drinking alcohol on August 28, 1982, through a series of miracles – of course, those are two different things and a lot of people manage to continue smoking while maintaining sobriety while others have no problem with drinking anyway and smoking or not is no big deal to them – but for me, I know I could not have been able to do things for other family members if I had continued smoking, for example, surely would not have been able to pull all those all-nighters in the hospital with them, for example –
fortunately, I realized SOMETHING was addictive about those Fritos Chili Corn Chips and I don’t know what it was but I managed to step back from the precipice!
When I saw a study saying home gardens could increase global warming, I thought here we go.
“A 2024 University of Michigan study found that some urban agriculture, including specific types of home gardens, can have a higher carbon footprint per serving than conventional farming, often due to high-emission infrastructure like raised beds.”
They do not want us having a food autonomy or making healthy choices.
Very good example of the BS out there being used to abridge our freedoms – even to the extent of saying home gardens could increase global warming – I daresay Big Ag would LIKE that study!
I recall Wretched Gretchen Witch – mer prohibiting the sale of garden seeds during Covidmania.
The problem with focusing on the money supply is that it ignores what the money produces. Government spending is productive when it is purchasing produced products. It is inflationary when it is given away for nothing to people who in turn contribute absolutely nothing into the economy. The “safety net” has become a gigantic party tent that rewards and encourages doing nothing productive. It’s the line from the Chris Rock routine: “I got three jobs. You can’t find ONE?”
Exactly – when 25% of the population is operating with subsidized food and shelter it creates the same scenario we are in with Health Care and Education. The costs are hidden and there is no proper demand side limit to increases. Since the government will pay for it why care if eggs are $2 or $10.
This also applies to college tuition when the government “loans” money to students who are (wink wink) told that they won’t have to pay it back and that the govt will forgive the “loan”.
Most of the students don’t care about what the cost of tuition/room/board is because it’s free money from the taxpayers.
Thank you, Sundance.
As one whom understands basic economics generally, your explanation and examples further my understanding a great deal.
Excellent and concise explainer.
“Math always works”, is what my dad used to say.
<’Math always works’>
If I had 50 cents for every math exam I failed…
I’d have $6.40 🙂
If you have a few extra minutes while shopping pay with cash, last time worker called manager, manager took out calculator still got it wrong. It went from not enough change to too much, that’s where I left it.
🤣
🤣
Hey, at least you excelled in writing. 😘
Thanks, Alley…I appreciate that!
But I just said that for the joke 🙂
(I can actually multiply any two digit numbers in my head)
I wonder how many caught your $6.40 joke.
😆
😂🤣
🥁 <Rimshot> 🥁
There are a whole slew of nations in Europe ready to welcome our deportees.
Get em while they’re hot. Once they find out the downside they will change their minds.
Send them, send them now!
Excellent.
Glad he asked the question and glad you answered it.
Excellent analysis SD
Sundance, I don’t know if in its totality an economic argument. It’s a profound ethical and social decision. Let’s argue that yes illegal immigration keeps certain prices lower. However, you now create a permanent underclass of an ever increasing ethnic class (Latino). By every measure a growing permanent underclass is bad for your culture and society. A rising tide raises all ships, the more Americans you employee, the more money the citizens of this country make, thus the more they spend and wages across every sector increase. As such inflationary issues become less an issue because citizens wages across the board rise. Look at Silicon Valley a once mid-tier software developer was making $150K and now is making $350+K.
Perfect explanation. Though the Senate Squaw Pocahontas will not be pleased if more people see how full of crap she is.
Thank you Sundance! Appreciate you clarifying that.
I read a post on X a few days ago that highlighted a very small article in a realtor magazine. Apparently apartment rates in Los Angeles have dropped because illegals are leaving (or being deported). The result is empty apartments and the landlords are lowering rental rates to attract customers.
Supply / demand.
There are many areas in L.A. that you would not want to live in. I imagine that is where all these ‘new vacancies’ are occurring.
I can imagine the condition of some of these units. I am willing to bet that a good number of landlords/property management groups will not lower rents drastically so as to recoup the renovation costs.
It’s also jobs some illegals work at low paying entry level jobs. The idiot HS students protesting ICE and to keep illegals here are to stupid to understand those illegals will have those jobs when they graduate and they will be unemployed. These kids are in the worst preforming schools in America, they are not going to college or tech school. They are only qualified for entry level non skilled jobs that won’t exist as illegals will have filled them. Another generation of welfare recipients dragging on the economy.
Not being as economically savvy as I should be, how does the fact that so many illegals send money out of the country enter into this equation.
I think it is a big factor.
A solid argument that welfare should have time limits like unemployment compensation.
We are supporting Mexico with illegals sending money ‘back home’. They get welfare here while working for the under the table dollars, which means we are providing them the money with which to do this.
AI answer so it is slanted left but explains it well enough. The part I didn’t include was crying big tears for the people the money is being sent to in foreign countries. There are enough tears in the conclusion.
## Understanding the Impact of Remittances on the U.S. Economy
### Why Some View Remittances as Negative for the U.S. Economy
1. **Capital Outflow**: When individuals send money abroad, it represents a capital outflow. This outflow can be viewed negatively as it means less money is being invested or spent within the U.S. economy.
2. **Consumer Spending Opportunities**: Money that could be used for spending on domestic goods and services is instead sent overseas. This could potentially slow economic growth, particularly if those funds would have been spent locally, stimulating businesses and creating jobs.
3. **Balance of Payments**: High levels of remittances can lead to a negative balance of payments, where more money is leaving the country than coming in. This might reflect poorly on economic stability and could cause concerns about foreign exchange rates.
### Conclusion
While remittances represent a flow of money out of the U.S. economy, their impact is multifaceted. They can provide safety nets for families in foreign countries and may lead to increased trade opportunities that benefit the U.S. over the long term. Balancing these factors is crucial to understanding the broader implications of remittances on economic health.
Trump’s administration proposed a tax on remittances sent by immigrants, including those who are undocumented, as part of a broader effort to restrict financial benefits for illegal migrants. This tax aims to discourage unauthorized immigration and is expected to significantly impact the financial lives of immigrant households.
I understand how remittances work, but I am wondering how they impact inflation, consumer prices and wages, the topic of this thread.
Perhaps Sundance can enlighten us.
And to top it off many illegals who do work send a significant portion of their earnings as remittances back to their home country. It’s estimated that up to a quarter trillion dollars were removed from the U.S. economy last year due to these remittances. India is the largest benefactor of these remittances.
It is all the East Indian H1B IT jobs. I work with many and they send $200 home every pay period. It supports a household of 8 for a month or more.
Inflation is the sustained, general increase in the prices of goods and services across an economy over a period of time, resulting in a reduction of the purchasing power of money. It represents a rise in the cost of living, where the same amount of currency buys fewer goods than before. It is not a temporary price adjustment in one or a few goods or services, such as when the Dems were fretting about “egg price inflation”. That was a normal, temporary price increase due to a variety of economic variables that had nothing to do with money supply or overall inflation. It had to do with, primarily, supply and demand and various costs. The free market can and does react to and “fix” these types of temporary price fluctuations.
Labor is one of those cost variables, and when we remove illegal, cheap labor, we should see higher labor costs. This will lead to higher overall price, but this is not inflation. It’s a rebalancing of pricing more accurately tied to the real market, as Sundance explains. It is one variable, which isolated would increase final price. But when not isolated, in the real world, you have to include other variables such as less demand for food (less people buying it) and less demand puts downward pressure on price. Less money supply via government program subsidization puts downward pressure on demand and lower prices. And on the other side of the coin, you have more demand for labor, so salaries rise, which swings “cost of living” in a good way. When salaries rise faster than prices, our economy is WINNING!
The only people hurt in such an environment are the non-working, living on cash savings. Welfare, SS and invested savings tend to have cost of living adjustments in line with inflation or in the case of investments beat inflation over time. Advice, never have all cash under the mattress as a retirement plan.
The punchline is that blue collar wages are rising while energy prices and rents fall and fresh produce stabilized. Real affordable progress.
Electricity is energy and it’s price has most certainly not fallen. Our rates are up 13% from last year according to the notice on the last bill (infrastructure enhancement they say). Same for natural gas.
Energy prices are regionalized.
Up in the northeast I get to pay a premium for electricity between all the Regional Greenhouse Gas Initiative mandates and all the ridiculous renewables requirements that the. State legislature has required. Not terribly impressed with the performance of the public utilities commission either with the costs continuing to rise.
The Fed Gov has an extremely limited role (if at all) vis a vis electricity rates.
As quoted, this, “Right now, my best guess is we can likely remove 10 to 15 million subsidized illegal alien spenders, before we reach the point where upward worker wage pressure starts to exceed the downward price pressure created by removing ‘free money’ spending” is a guess.
And IMHO, not a very good one.
It makes one poor assumption. A reduction in subsidized illegal spenders will reduce government outlays. As one who has worked in government–governments ALWAYS spend their budget, and it takes incredible effort to reduce that. Remove the aliens, others will fill in or fraud will fill in. In terms of supply and demand of consumer products–much of illegal alien income is being funneled home and not put into the US economy. Finally, now that I consult in manufacturing–lots of lower cost labor will be gone if ICE started raiding plants and there’s a lot of factory work that US citizens simply will not do. Thus, higher wages will cause inflation. Reduction in crime may help, but reduction in subsidies…ha, I laugh. We see lots of DOGE opportunities–how many are actually being implemented and money being recouped? Not many.
My brother managed a department in GVT, it is true that if he did not spend his budget that he would not get that amount next year so he would blow all of the remainder on whatever things they used most.
I’m sure someone else got/misappropriated any budget surpluses if they did not get spent by the intended department. (probably a rare beast tho)
IDK about programs such as SNAP and the like when expenses are forced down, it has happened before tho and worked to reduce spending tho I am sure there are ways insiders have found to skim/siphon $$$ off.
I think the only way would be for congress to cut the budgets a % but that is unlikely to happen with all this CR crap that they just add more money every year for “inflation” that is really just more graft money to pilfer.
“Finally, now that I consult in manufacturing–lots of lower cost labor will be gone if ICE started raiding plants and there’s a lot of factory work that US citizens simply will not do.”
Well perhaps or perhaps not, having worked on forklifts at many distribution centers & manufacturing plants for many years.
There is only one way for major companies to hire the IA’s & that is thru a “temp” agency & 20 years ago figures mind you, they paid the temp agency 20$ an hour for their workers… but the workers did not get that amount usually significantly less than half of that, nor did they get insurance or any other typical benefit of being an employee as a temp agency worker.
The temp employees that “looked” legal were mostly criminals or parolees, and definitely not very sharp utensils as many nearly unalived me while fixing their “rides”.
So I think it is possible to keep wage costs down if you move the employment part back to within your own house because you can as everyone you hire is a Legal hire, you are not paying thru the nose to “legally” hire an IA.
Please name a task that a U.S. worker will not do.
There are many food processing companies, slaughterhouses, etc. that are manned by people who can pass e-verify, but are not citizens and a significant portion of them are not here legally.
There are other industries as well. The work ethic of the typical 18 to 35 year old is not what it was 30 to 40 years ago.
Drill down some more and you will find out the real reason that the American work ethic has dropped off over the past few decades.
You just made a very concise example of why Sundance is correct:
“lots of lower cost labor will be gone if ICE started raiding plants and there’s a lot of factory work that US citizens simply will not do.“
Americans WILL do the work if it pays enough. . Name me ONE job American workers will not do! You can’t.
It is true… At some point the prices for food, construction, lawn care, etc. will increase because the cost of those services will increase without the illegal labor to exploit..
However, the American construction workers and lawn care guys will make more money to be able to afford the resulting increases. Inflation yes, but inflation relative to inflation of wages. .
Inflation WILL be felt by those on fixed incomes or out of work….
but now millions of vacated section 8 housing is available for those people currently living in cars or under the freeway as millions of immigrants are gone. Also fewer unemployed as millions more jobs available as immigrants leave.
AND..
more money available for increases in social security to those on fixed income due to trillions not paid to the illegals collecting those benefits.
A lot of factory work that Americans won’t do.
Get rid of the illegals, watch people flood the job fairs. A whole lot of them will
be over 40, 50 scraping by because their job that paid sufficiently dried up.
The system locked them out. They will show up and fill those jobs, given a chance.
This may have been noted above. Less folks to sell to, should lower prices to move product if the same amount of product is out there. Of course might be exported to rebalance the supply/demand equation.
Of course, there also needs to be reduction in goobermint monetary assistance budgets if fewer folks claiming it. But we can’t even get in our face fraud in Minnesota investigated.
In addition to the reality of what Sundance is saying, he is not even delving into the truth that many of the illegal “visitors” never leave, and work for CA$H that is paid daily, or weekly. They don’t declare the income and live very well, with the subsidies that feed their children, put them through school, and pay their medical bills….another impact on government spending… (very inflationary)
It has been noted by historians that barbarian tribes like The Huns, who had been hunter/herders on the steppes of Central Asia, at some point turned to plundering their neighbors and living off the production of other tribes, and became accustomed to not producing much of anything on their own.
Thus, after c. 4 generations or so (c. A.D. 380-460) of plundering towns and cities at the edge of the Roman Empire, there was not much left to grab!
Thus, the Huns were defeated finally in the mid-450’s, their leader Attila died, and they were defeated in later battles by Germanic tribes, their “empire” destroyed.
My point is that people can become accustomed to NOT producing anything and living off the production of others for a long time.
But, as Prime Minister Margaret Thatcher famously observed, eventually “you run out of other people’s money” or their production and wealth.
Hence, Illegal Immigrants have also run out of something else: their time in this country!
Plymouth Colony and the “common store” come to mind.
If we paid them like slaves we would be golden, but we pay them like kings and that makes us the slaves. Sundance is right.
“A much larger percentage of illegal aliens live on various subsidies and govt spending programs than our native American population.”
No!!!! Say it ain’t so. Demonrats and the drive bys assured everyone – myself excluded – that illegals DO NOT receive any form of givermint subsidies. NONE. And we all know demonrats do not lie…. like ever…
We are definitely in unchartered territory. Economically, politically, even spiritually. Our Lord is soon to return.
“It is against the law for undocumented immigrants to receive public assistance, vote in elections, etc. etc…” <sarc>
We really don’t have a capacity to build more than 1.5M to 2M houses per year. Regulations a the local level limit supply growth. So, when you are already short 2 to 7 million housing units because we shut down production from 2008 to 2015 due the great financial crisis just as the Millennials are graduating college– we then let in 3-5M people per year during Biden…
The 3-5M let in during Biden years could soak all the apartments and homes built — leaving little for the Baby Boomers kids… this drove up rents. Rent is about 30% of CPI … Stopping the inflow and sending some home to their own country is taking pressure off rent. Rents are now down Y/Y… CPI heading under 1% in 2026… its that simple.
Other stuff like eggs.. I can get eggs now for $2 a dozen… not the free range stuff but if you nee that … that’ your problem
Can’t have more people riding the wagon than pulling it, for very long….. we need to pull it across the border and PARK IT.
Thank you, Sundance, for this logical common-sense explanation.
Minneapolis MN, has a business model dependent upon illegal aliens and the other recipients of federal money, they are all engaging in massive >fraud, (according to a summary of a political opinion article).
Minneapolis politicians are currently seeing a massive drop in tax revenue in the city of Minneapolis. … A deportation of illegal immigrants and the stopping of the massive fraud in the federal programs will be an economic disaster for the Democrats >everywhere.
A California politician once famously said, ‘Money is the mother’s milk of politics.’ …… Money is used for an increase of wealth by Democrats and mostly to obtain political >power.
“Control the money and you control the power. Inside this battle over spending the historic dynamic of the UniParty will be visible. Remember, Democrats want power, Republicans want money.” [TheConservativeTreehouse, >Outline of DOGE Approach and Legislative Branch Defenses Starts to Become Visible< November 27, 2024.]
Minneapolis is also affected by people refusing to go there and spend because of riots and protesters. Sales tax is also a motivator. Just go 5 or 10 miles to a different city and they’ll be safer while spending less for the same product.
I drove 2 hours to buy a small fishing boat because I saved about $800 in sales tax and the people I bought from were much more friendly than our Minneapolis St Paul metro area.
Jacob Frey, Mayor of Minneapolis, is educated enough to understand a ‘city budget’ balance sheet and spot any short fall in tax dollars. As a note: Mayor Frey was born in Virginia, has a college degree from the prestigious private college of William & Mary, and graduated ‘cum laude’ (good grades) from Villanova University School of Law.
Mayor Frey should be capable of understanding a city ‘balance sheet’ as to the source of revenue needed for the services in his city. … + The Immigration Control officers from Ice were obligated in Minneapolis to provide for ‘crowd’ control while arresting illegal aliens. … Such ‘crowd control’ would typically be provided by the local police, which was NOT always present, and seemed to be operating on a ‘standdown’ deployment.
A common occurrence in America now days is for Americans to travel long distances to shop. … Once successful shopping malls use to be located near city population centers. Now days, crime has engulfed our Democratic controlled cities. ‘Food Deserts’ and the closing of shopping areas are due to high crime in the same Democratic controlled cities. … It’s naive to believe it is just accidental. … The Democrat politicians have a business model of impoverishing Americans.
The convivence of shopping on-line is NOT the sole reason for the closure of the Shopping-Malls across America. … The wish for >women to shop where they’ll be “safer” is also a major reason for the closure of many formerly successful Malls.
***************************
As another note: in my town, people, especially >women, will travel twice the distance mentioned in your comment to shop in >another county. = They travel from a Democrat majority county to a Republican majority county. … I’m not aware of any money savings at the Mall in the other county. … I do know the democrats in my county try to squeeze a lot of tax dollars out of the paychecks of working Americans. = [A Democrat Politician characteristic.]
Sundance is 100% Correct. Illegals do have a maternal impact on govmint spending, all illegal aliens must be deported. This can also be encouraged by notice of govmint goodies ending for illegals.
Our welfare first government under the Biden administration not only opened the border, but encouraged invaders with taxpayer funded goodies.
America will fail if Democrats regain control. The Demwits not only are economically illiterate, but live in a world of delusion & emotional fantasy.
Maternal or material¿
?
The RINOrat plan.
That is the punchline, the Dems/left want the country to fail.
You can always tell the Snap shoppers by their carts full of high-end items.
Excellent article, as usual Sundance, it gives me hope. But…. will we as a nation have the stomach to deport enough to actually bring this about.
One aspect of all the influx of people is that the citizens being imposed upon are not getting the advantages that are being given to the people foisted upon us, our school districts, our housing –
WE feel inflation – THEY get help with housing, food
Housing costs go up as landlords see that they can charge higher rents for people who are crowding into a one or two-bedroom apartment that USED to be a reasonable rent for an entry-level clerk or secretary, a young couple just married, just graduated from college (for which they had no debt at one time, having worked summers and part-time jobs and obtaining scholarships)
What the President just did to the “institutional” purchasers of homes, apartment complexes (eg Black Rock) was a great thing, he is so brilliant but I know the Black Rock people have to be hopping mad.
A black high school friend of my daughter lived with her mom. They rented
an apartment in Clarkston, lived there for 10+ years. Mom and daughter were
both terrific people.
They, and everybody else that had lived in the complex for many years had to
move. Because the rents went through the roof so that the ownership company
could rent out to the refugee population that relied on federal vouchers.
Rents increased 250 a month due to the refugee hustle. And, this occurred
12 years ago, when you could rent a pretty nice 2 bedroom for less then
$900.
That is an important point. The same NGO/ government complex that brings them here, flies them all over the country provides them the assistance to get the federal housing assistance.
The down on their luck American, who struggles and needs assistance to get through life stands NO chance of working the system to selected for the housing.
Meanwhile, the immigrant has a whole team of well heeled mentors to work the system for them.
As exampled by the Somalis elected to Congress.
Yep. Clarkston has SEVEN refugee organizations, and one church that was tore down and rebuilt
to provide acreage for “transitional housing” for their prized populations.
Clarkston is also the ONLY voting location I go by in my area that has block long lines getting
into vote. Legally or otherwise. Everywhere else has lines that are less then 20 people deep, even
in national elections.
This is also true with all aspects of our economy. Health care skyrockets in cost because the resources ae stretched to cover people who do not pay for services. The regime that opened our borders seek to destroy freedom for the citizens of our country. They must be destroyed if we are to regain our freedom. It’s all connected from Satanic Epstein black mail all through government and society. We must find our way back to God as a culture or perish.
Who is kidding who here?
Whoever came up with this idea to import a multitude of people violating our immigration laws “gamed out” their plan very, very well, if for no other reason it has worked magnificently to say the least! The late Rush Limbaugh had it pegged as a democrat endeavor from start to finish, even suggesting there may have been some republicans who were on board with this evil game. In 1944 Von Neumann and Morgenstern published their Theory of Games and Economic Behavior which was transformative in the prediction/strategy world. The Department of War games out military ideas, etc. every day as does the insurance industry with risks. It’s where many math nerds go to play (thankfully).
Recall how Biden’s people set up those organizations to help in the transmitting of information to those marching up from Mexico and all over the world on how to enter the US, the right things to say…oh Hell, do you remember the early part of the movie Scarface with the Cubans going through Customs? You get my point. This whole game was planned and money printed to support it, right down to those zones where the illegals, after being placed inside America were then given all kinds of goodies–did you notice how new and wonderful their clothing was, especially after coming through our borders?
Did you realize just how active the Catholic Church was in this invasion? A lot of businesses made fortunes transporting these millions all over America. Landlords had a field day after the hotel/motel companies raked in their share for temporary housing, where even if the illegals did damage to the rooms, etc. the government would cover their bills. Governments issued all kinds of licenses to these people. And don’t forget how willing the media has been in covering and promoting this venture from day one–every day they sing the praises of illegals–from picking apples to killing innocents! I could go on but what’s the point, you know this reality, and so does your bank account!
My question is this: Is anyone going to seek out the primary creators of this game of invasion while I am still alive? I doubt it…sadly.
Yes I do realize how active the Catholic Church has been.
I am a practicing Catholic and I’m totally DISGUSTED with their involvement in this invasion. How is this current state of illegal immigration any different than slavery was (and I hope we all agree what a STAIN that was on the history of America)? And for all of you who want to excuse it by saying that many other countries did the same, it still doesn’t make it right. Nor the other Africans who facilitated it.
I just don’t know how the RCC can reconcile this. They would be much more effective trying to change peoples minds and do this by affecting the minds of those who can change legislation (that would be us – American citizens) rather than such an UNDERHANDED and illegal way. And it’s NOT just those in the Catholic Church. A lot of other religions are JUST as guilty.
As a lifelong Catholic, I am also stunned to realize billion$$$ of tax dollars have been funneled to Catholic Charity – as well as all major Protestant & Jewish Charities.
I thought separation of Church & State meant just that, separate … I know in decades past tax dollars were funneled to Church Charities assisting with natural disasters (example: Katrina) … but … it appears the MASSIVE giveaway dollars to Church Charities exploded with Obama and Biden … HUGE holding Centers were built for the illegals (aka: future democrat voters) pouring into blue cities, like Houston.
This an an evil enterprise by the evil in our government, and greedily accepted by the evil in our churches. As a result, I only donate to my Parish Church.
The Lutheran Church comes to mind.
I would like to add to the excellent analysis of Sundance.
Subsidies of any sort like help with healthcare, basic insurance, farm commodity subsidies, rent subsidies, mortgage loan freebies, EV rebates, even the Trump auto purchase interest rate deduction, are all artificial influences that alter the basic supply and demand principal.
If there were no such thing as health insurance, wouldn’t you think that consumers would demand transparent pricing and lower costs? Suppliers couldn’t just charge anything they want because no one would buy without a subsidy. The insurance industry purposely keeps costs hidden which influences consumers to not care, unless their out of pocket gets too large. Even a simple coupon for lets say breakfast cereal could influence the supply and demand if that coupon were out of the typical range. What if you had a coupon for free Wheaties? Wheaties would disappear from store shelves and artificially cause other brands to respond in kind.
With all the freebies our government provides to illegals and citizens alike, our economy most definitely has some artificial numbers.
Strozk, Page, Brennan, ballrooms.
And Donald is posting Obama ape memes…
What? You don’t like discussing economics?
The Ballroom is being built with DONATED money.
As Melania coat said, “I really don’t care.”
The left had huge balloons depicting President Trump as a baby in a diaper. They don’t have any moral high ground……at all
Well, yes, but… The agricultural producer has far less control over food prices than other “producers.” I get it that big, corporate farmers may be more influential, but even they can’t fool mother nature. Independent, family farmers may farm several thousand acres, but they are still quite vulnerable to all the traditional vicissitudes. And now they are essentially under attack by the companies from which they purchase their machinery.
well i did read yesterday that pepsico is lowering prices on their products(pop,soda,chips etc)because of the states that have banned their products from snap benefits.
Similar reasoning can be applied to refute the absurd notion that we, and every other developed (civilized) nation on the planet, NEED unfettered immigration to counter our aging populations.
As if every human was fungible. As if an IQ of 67, illiteracy in one’s native language, a lack of respect for the rule of law, rodent-like breeding, and an upbringing in a violent savage monoculture, could all be erased once a border is crossed, and free stuff is handed out.As if TAKER will magically transform into MAKER, with the wave of a leftist wand.
Imagine our country, and every other civilized nation, WITHOUT all of these free-loading criminal invaders. Imagine the safer roads, cities and communities. Imagine the increase in jobs and housing, the decrease in wait times in the ER or the doctor’s office. Imagine the school funds, and SPACE, and time, which could be freed up to teach AMERICAN children. Imagine our ballot boxes, filled only with the votes of AMERICAN citizens.
Imagine, NEVER AGAIN, to hear the words “press 1 for English”.
You can’t polish a turd, but you sure can give it a flush. And once that’s done, about 50 million more times in our country alone, what do you think will happen to the birth rate of AMERICAN citizens? I’ll bet it skyrockets.
The illegal infestation is because the democrat party is shrinking. They’ve slaughtered 70million potential voters in their abortion clinics … blue-cities murder democrat voters, gays, trannies & screeching white-liberals, do not procreate … the illegals are their voter replacements.
What brought about the Immigration and Nationality/Hart – Cellar Act of 1965 was the realization by the Democrats in the late 1950s that U.S. voters tend to drift to the right in their voting patterns over time.
Nobody even gives a rational estimate of our illegal immigrant population here. When Ronald Reagan signed Ambesty, the estimate wS one million; 3.5 million signed up.
Here’s a good estimate based on available facts and estimates.
I. Yale Insights: Yale Study Finds Twice as Many Undocumented Immigrants as Previous Estimates
September 21, 2018
“Using mathematical modeling on a range of demographic and immigration operations data, the researchers estimate there are 22.1 million undocumented immigrants in the United States….”
“The results, published in PLOS ONE, surprised the authors themselves. They started with the extremely conservative model and expected the results to be well below 11.3 million….”
“After running 1,000,000 simulations of the model, the researchers’ 95% probability range is 16 million to 29 million, with 22.1 million as the mean….”
https://insights.som.yale.edu/insights/yale-study-finds-twice-as-many-undocumented-immigrants-as-previous-estimates
II. The President Trump Administration has estimated between 10 million and 22 million new illegal immigrants entered during the Autopen Administration, including NGOs facilitating airline and land travel. (Historian Victor Davis Hanson has said four planes a night carrying illegals arrived at Fresno Airport during Biden’s term. Every night.)
22.1 – 29 million (2018) – Yale study
Unknown – Net change – 2018 – 2020
10 – 22 million – Biden NGO importation
32.1 – 51 million – total estimate
That picture says it all – unfortunately.
I wonder how many illegal immigrants are still receiving government money long after they are deported.
The biggest problem in the modern “economy” is that actual price discovery, once determined by the major exchanges, has now been displaced by subsidies and trading for the sake of trading, much of which is computerized in lieu of open outcry. The CBT might as well be labelled a hedge fund because there is zero relationship between commodity pricing and production out in flyover country.
Here are a few ‘little’ programs we never think about.
1. Some California schools send food home with [Latino] students on Friday so they won’t go hungry. (Female suicidal empathy.)
2. I was in a NorCal barrio and a young man was flirting w a single Latina Mom. I asked him who watched her two young children? Answer: “The Government. So she can work at Jack in the Box.”
3. Over 3 million illegal immigrants own homes. Some in rural areas, others in cities. Their family and job structure have pushed African Americans out of many “chocolate” cities. Oakland CA is one example.
“More than 3.4 million undocumented immigrants are homeowners, according to the Migration Policy Institute analysis of the 2014 U.S. census data. That’s about 31 percent of the undocumented population.
“While some undocumented immigrants pay for their homes in cash, others have been able to obtain little-known ITIN mortgages. ITIN stands for individual tax identification number. ITINs were created to enable tax payment by foreign nationals who are not eligible for a social security number but own businesses or assets in the U.S. But since its creation, the program has also been used by undocumented immigrants living in the U.S. Undocumented immigrants can use ITINs to open bank accounts and pay taxes on their U.S. income.”
https://www.marketplace.org/story/2017/09/11/american-dream-how-undocumented-immigrants-buy-homes-us
Good take. Left out another part of the equation. Devout Muslims do not believe in debt,
mortgages. They DO believe in pooled family and friend assets within their network to
purchase homes, cars. So they manage to achieve homeownership at a faster rate then
most Americans. Who don’t have a “friends and family” plan to help them get a roof over
their head.
Excellent article. Thank you, Sundance.
🇺🇸🇺🇸👊👊
Don’t forget that The Democrats voted for the Continuing Resolution after losing in 2024 but before Trump or the new Congress took over. We had to live with that for a full year.
Methinks it’s the same as paying Dane gold.
“…we have an unprecedented number of illegal aliens spending gov’t money without any economic productivity.” A kind of “Cash for Clunkers.”
My two cents. Too many people confuse price increases with inflation. Price increases are a symptom of inflation, but also a symptom of other things. Like how a runny nose could be a symptom of a cold, allergies, or the flu. Price increases can be caused by inflation, but also other factors such as shortages or increased cost of production.
Inflation IS an increase in the money supply. The thing being “inflated” is not prices. It is the supply of money. And it has the effect of robbing anyone that does not receive the first proceeds of the increase. The the only real source of inflation comes from fractional reserve banking. I.e. lending money that nobody actually has (i.e printing or creating out of thin air). Before the federal reserve act of 1913, the USA enjoyed a long period of mild deflation where their money actually gained value because it was tied to gold and you couldn’t just change a number on a ledger to create “money” from nothing. Historically private banks could cause inflation and they still can but currently the greatest source of inflation is the US Federal Reserve Banking cartel whose state goal is a perpetual inflation rate of 2%.
Let’s stop confusing the issues of price increases with inflation.
10 years ago, it was reported that the original dollar had lost so much value, it was worth $.04. Is it even worth $.01 now?
That is the result of the perpetual inflation target of 2%.
Thank you SD.
We not only have our own intel analysis section here, we have a mixture of Scott Bessent/Kevin Hassett/Charles Payne happy warrior who can explain this “economical-like gobbledy-gook.” Seriously, it’s worth a re-read, because it is a 105mm howitzer round in your pocket when you run up against someone who is running their mouth out over their skis but hasn’t made the full jump to communism yet.