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It’s a great question because Charles is essentially correct from a historical reference.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
Wage growth can happen by labor shortage, devaluation of the currency, or superior productivity by workers.
Illegals gone causes labor shortage.
Illegals gone means less currency devaluation through government deficit spending. Maybe more Americans working on the books and actually paying taxes. But not sending remittances out of the country.
Illegals gone probably has little effect on productivity, maybe slight decrease, because like it or not, most Hispanics doing manual labor DO work harder at “jobs Americans won’t do” than Americans. They have no choice. My reply to Juan McCain complaining about how Americans won’t pick produce is ‘Why don’t you mechanize it so NO human is doing stoop labor in 90 degree weather?’. But I digress.
It is complicated.
Since I first read your post I’ve been looking for a video of Paul Shanklin’s, You’re Our Guest (worker) sung in Juan McCain’s voice.
I struck out.
It was a favorite as soon as I heard it on Rush’s show years ago.
If they are allowed to mechanize then the illegal grift machines and replacement citizen schemes fail.
That’s why photo ID to vote is being resisted though it has over 80% approval by Americans, even dems are at 76%, IIRC.
I got you 😉
https://sonichits.com/video/Paul_Shanklin/You're_Our_Guest_Worker?track=1
After listening, that’s probably not what you were looking for, but there are a bunch of them on there so maybe you’ll find it.
I remember it.
Not your song but you reminded me of the Ray Stevens song… Do believe Ray has sung about many political issues and he speaks the truth in all of them though funny.
Ray Stevens – Come to the USA
“The Streak” is my favorite.
Getting rid of illegals will ultimately benefit productivity by eliminating language barriers and resulting improper work and injuries, at the least. I work in the liability insurance claims business and the majority of serious bodily injury and death claims involve non-english speakers/readers as victims or causes. Construction defect claims have exploded with foreign labor. They don’t know what they’re doing, but they lie to get the cash. They may work harder, but they sure don’t work smarter or safer. These are all huge productivity killers.
Start employing high school students like they used to in the 60’s and ’70’s and training them to work.
Exactly. Social media is full of building inspector videos showing what sloppy, dangerous, unacceptable work they do in the construction trades. Work that has to be redone (time & money) and future catastrophe time-bombs when serious issues go undetected.
And how many 18 Wheeler accidents and deaths have we recently been made aware of due to foreign drivers who should have never been behind the wheel? Lots!
Not to mention the illegals driving on roads, no fault insurance, hospital overcrowding and much, much more ways they negatively impact our economy and country. Once 30-50 million people are exported then we can have true elections and continue to reveal and repeal all the graft and fraud in our spending. All of this will reduce our debt and rev our economy and reduce the strain on our resources.
Don’t forget that a lot of Fiat is being purged from the system.
This impacts things initially until we find the new level.
Vegetables are trying to kill you.
Real vegetables or the kind that work at McDonald’s and don’t know how to make change?
It’s true.
Oxalates are not your friends.
Productivity has been increasing, though as you say, it’s complicated.
Illegal alien primitive Latin American primitives may work harder but they don’t know what they’re doing. How can you expect a Guatemalan primitive who left his primitive village. to know how to repair plumbing or electricity? In jungle highlands of Guatemala outhouses are and kerosene lamps are a modern invention. Plumbing consists of the river or creek and buckets.
Really the only source of money is the central bank. When the central bank prints money faster than the economy grows, you get inflation, so SNAP and other benefits distributed to illegals increases money printing and inflation.
The grift is what bothers me most. Democrats paying illegal aliens enough to feed, clothe and provide free medical care for an illegal family comes out of what I put into the system. In other words, 40% of everything I’ve earned over my lifetime has gone to the government, and in return they have racked up 36 trillion in debt and spent somewhere between a third and half on fraud.
And democrats wonder why there are MAGA voters.
Correction: Juan McStain. 😁
What Charles is referring to is the Philips Curve, developed in the 1950s based on post war British data. Fed still uses it but subsequent empirical evidence fails to support it. Warsh is a proponent of tossing it out as an analytical tool
A succinct and understandable class in economics from Professor Sundance
Correct. It’s a discredited theory without ANY support in the data. Anybody still using the theory is actively lying.
The Fed relies heavily on it because it gives the Fed an excuse to raise interest rates whenever wages pick up. The ruling class likes that. High wages are only for them.
Thank you Sundance.
This is fascinating.
His analysis is even clear to my mind. I understand now.
Here is how “the system” works here in California.
Illegal Aliens can often work as independent contractors by using an Individual Taxpayer Identification Number (ITIN) or Employer Identification Number (EIN) to pay taxes, bypassing the need for a Social Security Number. While not authorized to work, they can use ITINs to contract for services. Companies generally do not need to fill out Form I-9 for independent contractors, enabling this form of work.
The other option is to work as an employee for the contractor in which they are required to use the E-Verify system. While E-Verify isn’t very effective, it can fail if workers use forged documents or identity theft to pose as legally authorized, allowing some ilkegals/undocumented workers to be cleared.
Social security numbers are often forged, stolen or otherwise illegible.
Another option is for the contractor to simply to drive to the local Home Depot and hire people paying cash. Obviously, no taxes are paid using this approach but the contractor subjects themselves to fines or license removal if caught If they even have one a license.
Now here is the kicker… many llegal / undocumented works will have a second illicitly obtained social security number that they use to obtain assistance for social support programs. Section 8 housing, SNAP (food stamps), Medical care (Medi-Cal), free school meals for the children under the federal National School Lunch Program (NSLP) and School Breakfast Program (SBP). Qualify for SNAP and you can even get your utilities discounted. Many of these programs are income based so that’s why the need for the second social security number. One can’t be using athe same social security number they fraudently obtained to work as that income could push them past a income threshold.
From my standpoint, these people are a total liability and should be deported immediatly whether they have had a criminal record or not. They should never be compared to those our forefathers who founded this country. Those immigrants came to this country to plant the fruit to make this country great. Today’s immigrants come to this country only to eat the fruit.
The NSLP is the reason that the National Education Association is so VEHEMENTLY opposed
to ICE and deportations. The sheer amount of fraud, graft, pocket lining due to Title 1/ Free meals
is stupifying. All you have to do is increase the measurable poverty ( schools around Atlanta have
“Title 1 fairs ) turn in those stats, and start counting the money. And, then you can purchase the
computers, materials . Or not. Because who will ask.
Title 1/ NSLP is a HUGE moneylaundering program. Remember how a lot of lunacy dried up after
US AID no longer funded it? Think about all the loose, “found it in the sofa” money in damn
near every school district in America which practices Title one fraud.
How do so many utterly insane politicians get their campaigns financed , into office? Title
one fraud has vast pools of money laying around loose. If it isn’t used on what it’s supposed
to be ( and who checks), it can be used for user friendly (anything non MAGA) political campaigns.
Thank you.
Bottom line … democrats do not have enough voters, so democrats NEED illegals to vote for them. Illegals vote democrat because democrats provide illegals with access to all welfare programs.
Welfare is funded by LEGAL American STOLEN tax dollars !!!
demonRATS may be evil … but … RINOrats are their evil enablers.
25 years ago I returned to California to teach. It wasn’t due to the nostalgia of my glory days.
My elderly parents needed me.
At that time–friends who owned restaurants routinely experienced staff roundups and deportations.
Students with parents of migrant- farmer status – had documentation.
It is currently a total non issue.
Total erosion in the rule of law. Legality and citizens be damned.
Any way to scam is now issued 100% approval.
Yup. My voter registration is sitting useless in my wallet. Here I notice that all routine medical is done through the school in their neighborhood only. The marquee outside lists dates for services but not prices. Never had that option in the schools my kids went to. Somehow even dental is done at the school.
Plus the naming customs where spouses don’t share the same surname makes for cover. Allegations that they would borrow children to qualify for more is probably true. There’s a huge subculture of getting over on the government and that’s not limited to illegal aliens. Many jobs citizens would do but the wages are too low for them to even keep a roof over their heads. If those citizens were subsidized just as the illegals have been they would be able to do those jobs. Think about all the people who have gone to jail and lost custody of their children because their wages didn’t support paying for childcare. Yet illegals can leave 6 kids under 6 alone all the long days they work and never get busted for it. I knew a single woman who would take some of her kids to do a paper route (which starts in the middle of the night) because they were strapped for cash – the school busted her for child labor. When did it ever happen to an illegal? My former employer hired an illegal family with very young children to clean the offices and never got busted for it. Although I have to admire how well those little kids worked alongside their parents. Another employer hired a group of illegals to clean the workspace and one of them was a very beautiful young woman. My coworkers became friends with her and were trying to help her get legal but the men that worked with her group were furious that she had exposed them and that she was getting help and they were ignored. These were both government agencies that hired illegals. Many maintenance workers in government offices were replaced by illegals and they would complain to anyone who would listen. They caught me one day and I suppose because of how I was clothed they thought I was somebody who could help. They lost their retirement, their insurance – everything. Even the neighborhoods where these people live are now populated by the illegals. The citizens lost their homes even. I often wonder what happened to them. Where did they go? I noticed that somehow this became a scandal locally and then suddenly all those illegal workers became legal -overnight it seemed. Unfortunately I think our greedy globalists are refusing to drop prices, especially on housing rentals. Anything to sabotage this administration and we the people.
But if the citizens were to start moving back into their old neighborhoods, they would be the dreaded “gentrifiers”, pushing out the poor people of color.
Good points!
The illegal alien has already violated a law when entering without inspection (EWI)… so what’s the difference if they obtain illegal documents… and fraudulently use them for:
SNAP
Section 8 housing
Health care
Free food for school kids
And whatever else is out there in the ‘safety net’.
Nice deal – what a steal!
And the Somalis are taking graduate-level courses in fraud, stealing, and corruption.
What did Mickey D’s sign used to say:
“Over _____ Billion served”?
The Somalis can put up a sign:
“Over 10 Billion stolen”
💵 💵 💵 💰 💰 💰
We also have cities and states that just give them drivers licenses, etc so they never have to jump thru the hoops of their illegality. This is also why just “voter id” will not fix elections.
Illegal aliens are by definition, criminals.
Deport them ALL.
Good points. Also, curbing massive illegal immigration puts downward pressure on housing shortages, vehicle shortages and food shortages.
A few days ago one site I was on stated that immigrants routinely become homeowners within 3 years of
moving here. I know this one up close and personal. One whole subdivision in Clarkston became almost
exclusively Nepali within less then five years after there was a refugee flood from them in my kid’s high
school. Big subdivision. At least 120 homes.
Vehicle shortages? I was driving home through Clarkston yesterday. All my cars are at least 15 years old.
Every single shiny Toyota ( mainly) or other imported SUV I saw was roughly 5 years old . Tops. It infuriates
me.
Our government helps them. Years ago our banks publicly notified everyone that illegals would get lower rates on mortgages than citizens and your large corporations including utilities gift monies to their community groups (that “whites”
aren’t allowed to have because “it’s racist”) from the profits they gouge from you. Citizens having issues with low wages are mocked but everyone is all in on extricating our “generational wealth “ for the benefit of strangers. They always bully those with no voice. Our taxes pay for attorneys for illegals yet we can’t afford attorneys for ourselves. You may snivel at the amount poorer Americans pay but that’s addressed in the Best Book Ever. None of this is new. Years ago community organizations (race or ethnicity based) would give illegals $5K for a down payment on a home. That number might be $20K today (don’t get around much anymore 😁). Replacement theory is tin foil hat stuff? Suuuuure. Actually I have often wondered that the food and medicine has destroyed so many bodies TPTB wish to be shed of and I also suspect that the two most reviled races in this nation (black and white) possibly seem to have the most difficulty having success with their pharmaceuticals and that other groups can more successfully tolerate them without damage which has multiple potential benefits for big pharma. The newer populations may be more genetically malleable and some of the hidden goals might be to make humans more adaptable not forgetting the $ aspect of course.
“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.”
The soul of wit, indeed. Thank you again, Sundance.
It is difficult to know where to start when eulogizing Sundance.
He seems to have such a grasp of all matters pertaining to the Making of America (the world) Great Again, it is uncanny.
Thank you Sundance.
Billy Eilish saying that no one is illegal on stolen land is like Scarlett O’Hara lecturing us on the evils of slavery!
The big part of the problem is there were a lot of migrants added by Biden. It was at least 10-20 million new consumers of all kinds of goods and services. Millions were paid by the subsidies from governments (Sanctuary cities and states subsidize them, too, like NYC providing hotel space and bidding up those prices for other people, for example). It is always demand and supply that determines most prices, such as the price of labor. If all the millions of migrants of working age were given jobs, wages would drop like a stone. The ones who just took “free stuff” and didn’t take a job, did nothing to drive wages down, but forced prices up by their consumption of goods and services.
Hotel prices in NYC went up 3 fold when Biden let the invaders in…. so a $100 room would now be $300 for example. I know this because I watched it happen via online websites.
I’m sure that anyone who went to those hotels by mistake were treated in a manner that they wouldn’t want to return by the residents. Wonder why tourism is down? That’s one reason. Just because my state is a big tourist destination doesn’t mean that there aren’t wonderful hotels in locations that you don’t want to be – surrounded by gangs of homeless drug addicts if you want to go for a walk.
I had seen this recently too. Actual inflation is even less than what the BLS had reported: Less Than 1 Percent Inflation? Yes.
The GDP deflator rate under Biden reached 7.0%. Trump has brought it down to 3.0%. Just one of a great many macro economic markers demonstrating that MAGAnomics works. The best micro economic indicator is when your own real wages increase after you get that good job you wanted when a foreign worker from India is finally sent back home.
The number 7 is nowhere near the cost of inflation (particularly food) under Biden.
I just read this: “This is one reason why America-First MAGAnomics is defying all the traditional economic analysis”. But I am being made extremely anxious by pollsters who day after day harangue on what a bad job Trump is doing, how his numbers will now slip into the 30’s, how he is going to lose the Senate and House and, based on what DEMS have been allowed to get away with with in the past, how horrendous their retribution is going to be when they take control of the levers of FED power. Then I look at Spain giving mass amnesty and I think about how this will affect all Western nations and what it means for our posterity. Am I over reacting? Why would anyone just pound on Trump’s weaknesses while proclaiming how dangerous the DEMS will be when they take power? What choice do we voters have?
Have to come here to keep an even keel.
Inflation is caused by too much fiat currency flooding the system, not higher prices. The more money the government prints, the less value your dollar has. It’s not that prices go up, it’s that your dollar buys less. Stop printing money and the value of the dollar increases, causing prices to go down. Get rid of all the government largess handed out to all the illegals and prices will drop as your dollar starts to buy more. The government doesn’t want to get blamed for causing inflation, so they blame businesses for being greedy and raising prices (although there are many large businesses that do take advantage). Once again, it’s just all about how you spin it.
Then we’ve got QE
The answer lies in the stoppage of billions that are sucked out of our welfare system, law enforcement capacity, the low level jobs that are taken Away from the Americans who also end up on welfare and the money that gets exfiltrated from the country as a remittance. That has to more than make up for the wage gains for the legal population. Besides, illegal immigration is not the solution for economic issues. We need to fix them the right way.
An interesting article about how “Pam Bondi’s DOJ Is Sabotaging The Trump Coalition.”
https://www.zerohedge.com/political/pam-bondis-doj-sabotaging-trump-coalition
And yet, Trump continues to stand behind and support Bondi. Is MAGA getting played?
And you still insert off topic crap.
OhMy is a perfect nom de plume! 😱
Excellent read. As well as a large % of the money these folks have is sent/wired out of country to relatives.
Proof that they’re double dipping and more.
Even if Congress passed a bill requiring that no money can be wired internationally without either taxes being withheld or proof that taxes were paid that would help pay the costs of government assistance, use of our schools, roads, etc.
Sundance says it better than I could ever say it!
Welfare the reason we have ‘some many’ fat people, 9 states allow EBT to buy fast food. And they are large population States. I would say Illegals come here only to die from obesity ailments, then we watch the medical industry get their piece of the welfare pie and you can see how welfare queens are used to bankrupt a nation. Their stealing never ends until their death.
Their stealing has cost the United States 38 trillion dollars and counting.
Last I looked at it the amount paid to a homeless person receiving SNAP only pays for one fast food meal per day for about 22 days out of the month. Since our demographic that is most rapidly becoming homeless is seniors I am not going to complain about them getting one meal per day for part of the month.
P.S. When hospice workers were in my life I learned that they have homeless seniors as clients.
I’d like to add something that we all know up here for a fact- because it’s no secret.
In Massachusetts and in deep blue corrupt states, many illegal aliens are also selling drugs and committing crimes as a means to support their illegal family. The judges in these states openly let them walk free often saying openly out loud that “They are doing this to support a family”.
Many of these judges are also the same people that let these illegals slip out the back door of the courthouse to avoid ICE that is out front.
I’ve seen two judges arrested now for this.
They do this because every single illegal that can make this all work can then stay off the books because they don’t need welfare. Doing this hides the numbers of illegals in the state from the taxpayers, which the state governments there doing this LOVE.
So this also adds into not knowing how many illegals are even here, not all of them are on state services.
Whenever you have a thriving black market, this also is going to impact the legitimate economy that we all participate in.
I think it’s clear how thriving that black market has been and still is even today.. few people talk about all this.
We up here understand all this since we deal with it all.. I won’t even get into the organized crime element.
YES this all also impacts our economy, inflation, the jobs, salaries, all of it.
They also share campers and ATV’s and go “camping” to remote places with their kids – a community effort at smuggling? Border state.
Outside of the gov’t subsidies, when illegal aliens bring down wages to subsistence level, all that income is spent on food, fuel and housing. That pushes their prices up. The citizen’s wage is lower, prices are higher, and he feels poorer because he his poorer.
Now take out the aliens, and distribute the same wages to the smaller number of citizens. The citizen now has more money, but won’t necessarily spend all of it because he eats the same, drives the same, lives in the same house as before. Prices are kept in check. And the citizen is able to save some money, and in time invest it. That’s how wealth in this country was built.
Now, aliens send any savings back to their home countries, where it fuels more substance spending. They get poorer along with most Americans.
It’s nothing personal, but illegal aliens need to leave.
I think there is upward pressure on wages at the lower end as fewer people are doing those jobs. However, that is good for lots of reasons, including apparent wage disparity is fueling some of the resentment stoked by the left. Higher wages for legal residents and Americans on the lower end means the incentives for work increase. It’s worth some small upward pressure on goods and services.
I’m like Charles. I sometimes don’t get what is being written or taught here, until a follow-up post or explanation is given, either way, I’m very appreciative of these follow up explanations, and I hope to see more in the future.
Looking forward to the next lesson.
In addition, it seems that the H1-B visa population is increasing rather than diminishing.
I don’t see any effort to turn off that spigot.
In terms of work force- that is a factor worth scrutiny. 👀
It sure does. That was a Masters Class in Economics.
We have been living the Cloward-Piven strategy as once taught by Glenn Beck.
Mark Levin harped on it too, before I had to turn him off. I’m not sure what he’s ranting about anymore. But that’s a theory where the system is overloaded(with free loaders) and drives the country into bankruptcy in order to implement socialism/communism
Love this post. However, the territory is not uncharted and traditional economic references do work. It’s just that the political left and neoconservatives have dominated academia and the media for so long that the general public has not seen them. America First MAGAnomics is working exactly as I expected it to work and will work much better if the pace is picked up.
Supply essentially remained the same, but Obama supercharged demand. Only one direction for prices to go then.
On another aspect of deportations, has anyone else noticed less traffic in their areas since around the first of the year? I have noticed a significant decrease in traffic in the Raleigh/Durham area.
Traffic in my suburban ‘hood of the SW burbs of Chicago is way, way worse.
Many have left deportation hot spots for the sanctuaries in Northern Illinois.
If Pres. Trump decides to focus deportations on cities and states that cooperate and welcome ICE, the illegals(foreigners) will relocate to welcoming places like Chicago and Illinois. These sanctuary cities and states, welcoming as they like to call themselves, are “safe spaces” for foreigners, but will make these localities increasingly less safe for citizens. And like Trump said, he only wants ICE to go where they are invited and begged to go. Chicago and Kankakee are going to get what they asked for-good and hard.
It is amusing how retarded liberals can be They are erecting No Go Zones to keep ICE out- or you might say they have erected barriers or created a border because they are against borders and sovereignty. “Get out!” they yell. “Get out of our neighborhood” (it’s stolen, but it’s ours!) LOL
I live about 60 miles west of Raleigh and yes I have noticed a decrease. Plus, our county sheriff has been making life miserable for illegals for a long time.
“The retailer can charge more for the products because half of the customers are essentially disconnected from feeling any impact.”
Same dynamic with health care costs since the implementation of “Obamacare” which forced every insurer to cover almost every procedure…which they actually wrote into the bill when they conspired with Nancy and the Democrats, because they got rich off of charging higher premiums to employers and individuals.
The fact that millions of lower income people, including MANY immigrants and their families, were suddenly “eligible” for all kinds of healthcare that did not cost them a dime simply pushed up the prices for everyone who had a job and/or was responsible for paying their own premiums!
Get rid of all of the people on Medicaid who do not pay anything into the system (and never have) and the costs will come down for legitimate consumers and their employers!
Great explanation, as usual. Remember Pelosi bragging that the illegals help the economy by spending? What a rube
What a
Nefarious
Lying
Evil
Rube.
Pricing is often driiven by marginal pricing, that is “spot” prices for goods needed quickly, or for a short period.
The presence of 20,000,000 illegal aliens drives housing costs upward, especially when so many are receiving government subsidies. Housing, especially lower cost rentals, has been filled by illegal aliens.
It’s been reported that each taxpayer pays $2,000 to support illegal aliens. 59% of households that include illegal aliens receive subsidies of various types.
So far, we have only gotten 3,000,000 illegal aliens out through forced or voluntary deportation. Hopefully as the pipelines of subsidy payments and fraud get choked off, we will see many more leave voluntarily. Also newly hired ICE and other Homeland Security personnel will be active and productive in enforcing our immigration laws.
I would hazard a guess that within the next 6 months to a year, you’re going to see a substantial increase in available ICE agents, BP agents, CBP officers,
HSI, USCIS officers, and other personnel.
In WW2, it took many months to train sufficient aircrews to man the planes being built simultaneously.
The US Army Air Corps went from 1,000 pilot graduates in 1939… to 165,000 pilot graduates for the US Army Air Forces in 1943.
The pipeline is just starting to turn out new people – by the end of this year, you’ll really see the buildup
in place.
In my area of NC, there are large apartment complexes that were built recently sitting empty!
Excellent, Sundance. Thank you
The picture is a reminder of our task.
Head em and move em out. Raw Ice
I like the explanation, but I think there is a bit of a issue, and that is the accounting for remittances to other countries.
The money is either taken from taxpayers, or created through debt. It is given to illegals where some is spent here, but some is sent to other countries. Money sent overseas is not inflationary here, but the debt must be repaid here. Only the money illegals spend here is inflationary pressure, mostly in areas like housing and food.
All the conventional economic theories I learned in school (many years ago) NEVER took into account 10, 15, 20 Million ‘free spenders’ such as the last two democrat administrations allowed in.
CTH has given the 2-minute ‘elevator speech’ on why rising wages won’t have an effect now… and only later… when (hopefully) the vast majority of the government money the ‘spenders’ pump into the economy is no longer happening.
This is another of the times where I wish this explanation could be widely circulated.
That’s an incredibly deep answer that results in saying “we don’t know exactly.”
The money has to be stabilized but so too does other aspects of the economy. In this consumer paradise no one knows how to do anything for themselves. (Obviously not completely true — country folk like me still know how to do things) but we were ALL meant to be addicted and too stupid to get out of it. We didn’t just export “jobs.” We exported SKILLS and TRAINING.
I often use my “using GPS instead of reading a map” analogy. Yes, GPS navigation is awesome. But it’s not “always” and it’s not always accurate either. Depending on what GPS software/system you are using, if you lose “signal” you are LOST unless you happen to be close enough to home to find your way back again. I used paper maps to drive across the entire country and when roads were closed or other such interruptions, I didn’t panic. I just found another way around the issue and kept going.
I took one of my older sons on a road trip to Yellowstone. There’s no flipping cell data out there much of the time. He thought he was being useful using his phone to track where we are and how long til we got there. When the data stopped I handed him a paper map. He went through a severe crisis from that experience. He just realized without internet, he didn’t know how to do ANYTHING.
Think about survival when an economy is trying to go back the way it should have been — self-sufficient and not depending on other multinational companies for the stuff we need… the stuff we no longer OWN and now just RENT.
We were meant to be permanent dependents on the new world order and we’re ALMOST THERE now! Have you paid your subscription to the services of the car you supposedly own?
“Inflation” is tied to the value of the US Dollar. When the value of the dollar goes down, we have INFLATION. That’s the most simple terms this can be put into. Dollars will have to be taken out of circulation to restore its value and make the prices go down. But the other side of that is we will also be working hard and “earning less.”
The best we can do is STOP inflation and get the government out of debt…. and of course change the central bank system and go back to the US Constitution where this CAN’T EASILY HAPPEN.
Like your analogy of map reading and GPS.
When my Nephew got married in NC a dozen years ago… we rented a car that had GPS.
When we used it to get us to the rehearsal at the wedding hall… it lead us into the middle of a cornfield and announced, “you have reached your destination”.
Uh-huh.
It was off about 2 miles.
I will use GPS – but still like having a map handy (got 3rd place in orienteering at the BSA West Point Jamboree in 1968 lol)
The civilian version of GPS has its accuracy degraded as compared to the military version.
I was on vacation in Colorado in 2010 and my wife went into a grocery store while I sat in the van and looked at a map. A man came up and asked where I was headed. He said if you look at a map you’d take that road, but if you want a better road, that is easy driving and very scenic go this way. It was some friendly advice that I’ll never forget.
GPS does not route you around bad neighborhoods. And I don’t know that AI will give advice about a recently paved less traveled road. Does anyone ever stop at a gas station to ask directions anymore? But I digress.
“Salt of the Earth” advice trumps all else. True.
But that makes me wonder. We say someone is “the salt of the earth” but isn’t there a negative meaning in the expression “salting the earth”?
“That’s the most simple terms this can be put into. Dollars will have to be taken out of circulation to restore its value and make the prices go down. But the other side of that is we will also be working hard and ‘earning less.'”
The expansion of the money supply by the federal reserve, both through printing (lesser reason) and making more lending money available through the banking system (interest rate control) is what INFLATION actually is. “Too many dollars chasing too few goods and services.”
Paul Volcker, Federal Reserve Chairman, used rising interest rates to drive down prices by sopping up excess dollars creating a recession from 1980-1983, along with 10%+ unemployment. Manufacturing concerns collapsed left and right, giving birth to “The Rust Belt,” which would get larger during future recessions. The entire thing was memorialized by Billy Joel’s 1982 song “Allentown.” The rising prices were put into check with a Prime Interest Rate of 20% and Federal Reserve lending controls extending down to Loan Companies like Beneficial, which were not under Fed control.
Native Allentonian here. When my BIL joined the Air Force after graduating from high school in 1983, his basic training instructor was asking each recruit where they were from. The instructor asked my BIL, he responded “Allentown PA, sir!”, the instructor replied, “What’s the matter? Couldn’t Billy Joel find you a job?”.
There are lots of able bodied American citizens that just suck off the govt tit, too. That doesn’t help.
An act of government by design, first targeting black people to destroy their families to create fatherless children.
Now it is expanded to others and to illegal aliens against the law.
But but according to the commiedems, Chamber of Commerce and all the pro immigrant (they always include both legal and illegal aliens) factions they pay for themselves. What is never disclosed is these illegals and many legal immigrants don’t pay taxes. Yes, if they are working they pay FICA and Medicare because there’s no choice with them. But they don’t pay Federal Income Tax. Don’t even pretend they do, cause they don’t. Plus if they file a tax return they are getting child tax credit refunds.
Also, not included in the cost are the taxpayer funded welfare subsidies. That includes medicaid, housing, education, snap, CHIP, Obamacare and every other assistance out there to be defrauded.
In general “immigrants” overall receive taxpayer subsidies at 62% vs American citizens receiving 31%. And the American citizens is too high in my estimation but that’s another conversation.
The whole point of the “immigrant” push is propaganda. My grandparents came as legal immigrants in the 1920’s and they were on their own. They made it through their own hard work. The only person in my family who spoke broken English was my grandmother who wasn’t in the workforce. English was spoken at home. That’s 1st generation spoke English with NO accent. Total assimilation. Unlike what you see today where 3rd generation is still speaking English with an accent.
No one is illegal on stolen land. In other words, to them, there are no “illegal immigrants” and “alien” is a dirty word until the ETs land here are they all flock to the “new diversity.”
No One Is Illegal On Stolen Land
If all the illegals were deported think of the taxpayer funds that would be saved. That should have a positive impact on the economy and everyone’s status in life.
If all the illegals were deported I could find a wife for my son….. currently all the invaders steal the white women and turn them into hardcore liberals.
Pat Buchanan made immigration a major issue in his campaigns of 92,96 & 2000 and forced the Bush Rino Republican candidates (GOPe) to discuss it to their great reluctance
This strategy aims directly at a reannexation of the Southwest, not militarily, but ethnically, linguistically and culturally through transfer of millions of Mexicans into the United States and a migration of “Anglos” out of the lands Mexico lost in 1848. In California, the project is well advanced.
— State of Emergency-Pat Buchanan
Americans Ambushed: Immigration Rally, July 4th, 1996
https://rumble.com/v19nz8g-americans-ambushed-immigration-rally-july-4th-1996.html?e9s=src_v1_s%2Csrc_v1_s_o&sci=d74fb159-5b7a-4777-995c-c2112a10ca2a
Yep – Pat Buchanan was sounding the alarm… back when ‘respectable’ republicans (ie, RINOs) wouldn’t touch the issue with a 10-meter pole.
Just imagine – if we had a Real border wall 30 years ago in 1996 – how much improved this nation would now be.
Perhaps more than half our problems would have never appeared.
I skimmed the comments and didn’t see anyone point out the one missing piece in Sundance’s well written article.
Productivity.
The reason that companies choose foreign labor is that it is cheaper than native labor. And that lower foreign labor wage allows a business to keep providing goods/services at a constant price to the consumer, therefore, no inflation. When labor gets more expensive, a company can choose to reduce the number of employees, hire foreign labor, or, and this is key, invest in technology, automation, mechanization (i.e. capital expenditures.) It could also raise prices, but it doesn’t have to because of employee productivity.
A company will make capital expenditures in order to get more output per worker. Think about how it is so much faster now to use our phones or computers to find an answer to a question compared to 30 years ago. It’s amazing. But let me use a simple example: Say a man can mow a yard with an old school reel push mower. And he can mow 3 yards in a day for a set price. If the same man invests in a gas powered mower, he can mow 6 yards in a day. The key is the investment in equipment to make him more productive. That’s what I mean by productivity. The man can now charge the same amount, mow twice as many yards, double his revenue and improve his profit margin because of that capital expenditure. His productivity as a worker has improved.
How this relates to foreign labor is that many of these people are paid low wages and there is little incentive for the business to make a capital expenditure to improve their employee’s productivity. And foreign labor is in every aspect of the economy (not just mowing lawns). The cheap labor is reduced through immigration enforcement and native labor replaces it. If you follow the labor market, nearly 100% of the gains in employment this year have gone to native workers, presumably at higher wages, than the departed foreign labor.
Native workers are more productive, on average, than foreign labor. If you’ve ever worked with lower wage foreign replacements over the last few years, you’ll understand what I mean. Do highly skilled foreign employees exist? Of course, but they are such a small percentage of the workforce of foreign labor as to be minuscule in their effect on the aggregate foreign labor productivity.
When Sundance says that the reduction in government benefits is happening because illegals are deported, he is saying that government spending is decreasing. Just think, native labor is getting jobs and they are getting off the couch or no longer receiving government benefits, too! So, if someone on the couch is doing another and gets a job, that someone is now doing something and his productivity has improved (economically speaking) and that is what government policy should focus on…getting the millions of men that have no jobs back into the workforce. The multiplier effect will be amazing for our country, and those men will be much better off for it.
Government spending artificially raises demand in the economy, and when the Democrats passed those multiple bills and spent trillions of dollars, it raised the inflation rate so much that in four years, the purchasing power of the dollar was reduced to 80 cents (i.e. 20% inflation over that four year span) and you can see it in the economic figures.
I could write more but this is pretty long already.
Awesome breakdown SD
The way to see that parade of people with the backs of the heads in the picture going away from us is simple.
At the end of the month, the EBT/SNAP cards don’t have any more money loaded on them and nothing more can be charged.
At the end of the month the cell phones go dead and don’t work.
At the end of the month the rent does not get paid.
Just cut off all the money.
Then they will head home where their relatives can support them, since they have been supporting all the relatives at home with monthly remittances.
Oh, and Stop, just block completely, any remittances from the USA to countries in south, Central America and the Caribbean.
As long as anyone gets anything they will not self deport.
Shut the spigot off and they will all go home.
You are not wrong, but crime would skyrocket and there would be a massive shock to the economy as businesses close from the rapture of employees. They can’t all be replaced overnight.
I think Trump is doing a good job giving them time and assistance to self deport, while forcibly removing the criminals. So far the impact (other than to the fraudsters) has been both positive and minimal.
First Off Thank You Sundance
Sometimes one can get a lot of Infor from an Illegal, especially their kids! Partly I think because people, yes many politicians have drilled it into their heads that what they are doing is perfectly legal and fine. Been proven that before many of the illegals make the trek to America, they are told exactly how to scam the American system to make the most money possible.
So many things about Illegals have shocked me…Especially when so many politicians try and portray them as hard-working law-abiding people.
As for jobs less than 20% work in the agriculture business. Those that do, as with many other jobs illegals do, work under the table and then collect social service benefits on top of their cash wages.
As for the illegals collecting social service benefits. Like I said many work under the table and still collect welfare benefits. However, many collect Social Service benefits under 2 or 3 different names, with & without fake &/or stolen IDs
Those stolen IDs illegals use and some politicians think is no big deal. Well, many of the illegals have realized that the stolen IDs are good for more than working illegally, and collecting benefits illegally. It’s been estimated that about 1/2 of the identity fraud in America is by illegals …I have a couple of relatives & friends that ended up spending tens of thousands to fix their credit after discovering they were a victim of identity thief A few of them discovered that it was people here in America illegally, but it did then no gool. Like most illegals when they get caught & the area is not safe from police anymore, they head back south until its safe to cross back over. Sadly many continue the same criminal activities in another area of America. Oh and those identity thief protection plans are not cheap. Average cast is 1200 a year.
So tired of so many people pointing at Americans & saying but what about American criminals. In actuality if the FBI did their reports correctly, Americans would see that Illegals are responsible for OVER 1/3 of America’s yearly homicides and other horrendous crimes.
In any country there should be ZERO illegals, including America. .
Thus, ZERO crimes committed by Illegals.
Thus, ZERO monies spend on teaching children of Illegals English in special pull-out classes.
Thus, ZERO monies spend on Social Services for Illegals.
Thus, ZERO monies prosecuting Illegals for crimes committed.
Thus, ZERO monies spend by American Victims to try and recover from the crimes of Illegals.
FYI—Do believe that majority of the reports out there about what Government has spent and spends on Illegals is far below what is really spend. Have a feeling that most like 1/3 to a ½ of our national debt is due to Illegals.
OK Rant OVER
Wage spiral inflation has ALWAYS been a myth. There is no evidence of it existing outside of long-since rejected theory. Every study of the topic has been unable to show the hypothesized connection.
AGAIN: wage spiral inflation is a MYTH>
If wage increases reflect greater productivity the effect in prices should be negligible as the supply would still be ample to meet demand with reasonable pricing because of the increased productivity. You increase productivity like the assembly line system did when Ford instituted it, you could be generous with wages, so that your own workers could afford what they built, without any price increases.
It was a full scale operation from Honduras to every major US city. Waiting for that caravan were contractor Catholic Charities and Lutheran Services, paid by the head, signing up the Newcomers for EBT and Medicaid. When these nefarious anti American Romanists are shut down then the spigot can be turned off.
Lutherans are Romanists?
Deportations not only lowers American Green Houses and reduces pollution, but it also protects our open spaces & wildlife.
Great discussion, as usual, Sundance. Another issue not discussed is the introduction of foreign diseases and pests. New World Screwworm is now within 70 miles of our southern border.
Most of our inflation is from Higher property taxes and Food Prices/Auto Prices….. Housing is high because Biden was racketeering with Black Rock who bought all the excess properties with mom and pop retirement funds, while Biden let in 20-30 million new renters…. pushing Housing prices to levels that nobody can afford, but local Govt’s love because the taxes went through the roof. So, the average person has to either work more, charge more, or lose the house they worked so hard to own. Accompany that with all those new people on foodstamps and the extra demand for vehicles and you have the crisis Biden intentionally created. The items that are hurting people financially are directly tied to Biden’s BS…. now reversing this is difficult because the companies and local Govt’s never want to reverse the damage to consumers and love their ill gotten gains.
Curb essential services (TV, cable, phone, utilities, medical expenses, car insurance) from rising two to three dollars EVERY SINGLE MONTH and giving a $40 raise once a year.
Thank you Sundance!
God bless you!