A small sideline story that reflects a combination of sociological and economic facets. A Yacht Club in the Hamptons of New York is forced to cancel their restaurant services after their staff is removed from the USA due to immigration enforcement.
The larger picture is well worth discussing, because there is a large and inorganic part of the U.S. economy that will obviously be impacted by immigration enforcement and the removal of illegal or unauthorized workers. First, from the Hamptons:
NEW YORK – An ultra-exclusive Hamptons yacht club catering to the wealthy and well-connected was forced to suspend its members-only restaurant service for multiple days after several of its kitchen staff were booted from the country over visa issues, The Post has learned.
The swanky oceanfront Devon Yacht Club in Amagansett — which reportedly charges around $100,000 in initiation fees — canceled its Wednesday night dinner service after its foreign cooks had to leave the US because of problems renewing their H-2B temporary work visas, according to a letter sent to members the same day.
Food service was also canceled Thursday and was not expected to be back up and running until Friday’s lunch service, the club informed its deep-pocketed members — a group that once included Jacqueline Kennedy Onassis’s parents.
[…] “It seems that an oversight either by the agent or attorney responsible for submitting our petition or perhaps by the US Immigration Office itself has resulted in a situation where our H2B kitchen staff must leave the country immediately and return to their home countries for at least 60 days before their visas can be renewed.” (read more)
Obviously, there is not a lot of sympathy for a bunch of elitists missing their Avocado toast and brunch options. However, if we stand back and think about the scale of economic activity impacted by a return to a nationally organic labor force, we accept there are going to be major ramifications to a variety of businesses across a broad spectrum of sectors.
As a ‘let’s get on with it’ proponent of deporting all illegal aliens, cancelling H1B and J-1 visas as well as removing all Temporary Protected Status populations from the USA, we must also accept the very predictable consequences.
Due to the inorganic nature of corporatized economics built on the backs of foreign workers, right now there are thousands of businesses in the USA operating on an inorganic business model, that could never have been sustained without massive import of cheap foreign labor. Additionally, there are billions of dollars in investment that was poured into the economy based on this inorganic and manipulated job market.
There are resorts and venues operating in the USA which never would have been built without a foundation of foreign labor to service them. Take that labor force out of the economy and things will significantly change. This outcome is both predictable and necessary to reset the labor market.
As all of these foreign workers are removed there is going to be massive pressure on the wage rates for American workers. That’s a great benefit. Simultaneously, there’s also some businesses that will never survive without that foreign labor pool because the business model itself was built upon a false foundation.
Most of the time we think about the service industries with workforces that are significantly staffed with foreign workers. Hotels, resorts, restaurants, vacation destinations etc. Many of these locations currently operating would never have found capital or investment in a true economy that was not built on illegal immigration, visas or foreign workers. There are likely hundreds of resorts that exist only because the labor market is inorganic.
With a predictable rise in wages comes the increased operating costs and diminished profit return for the investors and owners. This can have a major impact, but again, this outcome is due to fraud in the underlying business model. Those businesses likely would never have started and the investment never would have been capitalized without the fraud it is dependent upon.
Take out the illegal aliens; remove the H1B visas and all other ancillary visa approvals and remove the protected status returning foreign workers to their country of origin, and U.S. wage rates and benefits will quickly increase as companies try to find a way to shift to a business model built upon real economics.
This rise in wages will be significant and that can create an inflation increase. As wages increase in price, the operating costs increase. The per unit business model then must adjust and things like hotel rooms go up in price. As resort prices increase, they become unaffordable to the current target customer, that leads to lower sales and decreased revenue. However, that natural dynamic also returns organic competition to a market that has been missing competition for decades.
It’s not just about the service industries. As the labor market contracts, wage rates for blue collar construction and manufacturing jobs also increase. This can lead to higher consumer prices during the painful phase as the natural market balance is restored. Again, many businesses will not exist because many businesses never would have existed without the baseline of imported foreign workers.
Sectors of the economy will shrink just as the restaurant service in the Hamptons has been reduced.
There will be more housing available and rent prices will return to market competition. New construction homes will be more expensive to build, but less demand for the finished product brings back incentives and competition. Overall home prices for preexisting homes will likely drop significantly; however, on the upside with increased wages and lower home values the younger generation will have the opportunity for home ownership.
The U.S. population is roughly 350 million. There are roughly 170 million civilians in the eligible labor market. If you take out 50 million illegal aliens, then do the math and you will quickly realize how many inorganic or excess businesses are in operation.
Thousands of restaurants will go out of business, because thousands of restaurants never had a real business model to maintain their existence.
The labor fraud created a fraudulent economy, and this reset is going to be significant.
Perfect!
The bank who made that 30 year loan on the house assumed the H1B would essentially be in the US for the rest of his life. And up until Trump, that was actually a reasonable expectation. As SD notes in the main article, businesses had gotten so comfortable with illegal and visa immigration that behavior like this mortgage was the status quo. The banks didn’t even perceive the risk of government following the written laws on visa renewal terms.
The risk of loaning money to any illegal or legal temporary worker just went through the roof. If the people that get the loans had any brains they wouldn’t commit to a loan that they couldn’t pay off.
I have no sympathy for the lenders. They chose to give these people a loan, I hope they take the loss too.
For some, the only thing that matters is money.
Trump made it illegal to give financial services to illegals I think.
Having worked (and forced out of my job) by a large “stagecoach” bank, I can attest that the bank does expect all the H1Bs to be here forever. I lost count how many times I was on an email train that had 80% of the names from India. As you can imagine, that many H1Bs in the bank helped depress the salaries for the rest of us.
Boo hoo, couldn’t care less about any H1b holder losing a house. Same with the foreign invaders losing housing. Maybe they shouldn’t have been here in the first place.
“maybe”? lol lol lol
Actually, the lender will come out just fine. His interest is protected. The borrower will lose his down payment and equity. The lender will be able to come after the borrower’s other assets – including attorney fees to collect – and if the lender could get a $500k mortgage, believe me he has other assets.
If required. I imagine the property was valued well north of $750k. The dirty little secret is that the lenders do quite well when borrowers go under.
Yes, 2008 still burns in my mind, awaiting a vengeance that will never come.
Yup. Perfect example of how deep population-replacement was woven into the plan to take down America. This can only happen through intended manipulation of international banking policy, ownership of Congress votes, and direct control of federal regulatory agencies.
It is hard to understand a $100,000 learing experience, especially based on a temporary work assignment.
The system is set up so that when the fellow leaves and defaults on the loan, the bank will repo and figure out how to manage the property. The bank will be fine. Why worry?
I have to question what kind of salary the ‘Redditor Indian’ was making in order to procure a $500,000 mortgage, or, for that matter, the illegals at the Devon Yacht Club, where membership was upwards of $100,000. Are these salaries really on a par of what we would expect illegals to be earning, ie, below minimum wage??
I live in the Bill Gates neighborhood. The last time I was at the grocery store I noticed that instead of rude and entitled H1B types there was a change in attitude. I wondered what was going on. Now I know.
So be it. It’s what I voted for.
I don’t by the “they do jobs Americans don’t want to”. They are also in the trades.
Look at the posting listing for the Yacht Club. “Will provide housing, including a washer and a dryer”.
They don’t need foreigners. My daughter, who can’t afford to move out due to exorbitant Atlanta rents
would regard such a situation as her absolute wet dream. And she’s got tons of experience dealing with
the public. Tons of other American kids with the skill set that would jump on such an offer.
I know that she might come back home with many stories about what absolute shits the Hamptons
set is, but why can’t they try and get some help in from Jersey or upstate New York? Disgraceful.
These are jobs young woman used to do.
Look at the unemployment for teens.
It’s very high.
Between artificially raising the minimum wage and the hiring of illegals many young people can’t get into the work force anymore.
The government has screwed up this economy so bad.
The unemployment rate is actually about 5 times higher than the numbers they give on tv because after 6 months you are not counted as unemployed.
Imo they’re like roaches. Ev 1 you see in the open, there are at least 100 more behind the wall.
Roofers and drywall, landscapers look out.
That sh***y little phrase used by the elites in both parties has always been a lie.
What the elites really mean is that a free American citizen won’t work for the slave wages that the imported illegals are willing to work for.
It seems.
True that some businesses will go out of business. Others will realize that a now 5% profit margin, instead of a 10-15% margin, can still make the business run and keep customers happy. The ones with “the love of money”, will find their businesses defunct and will deserve their depleted bank accounts. I pity them not.
Deport ALL OF THEM. Every. Single. One. Regardless of age and how long they’ve been here. Crossed the border illegally and are being sent back? Overstayed your visa? Lied on your visa application? Oh, boo hoo.
Hear Hear!
Either there is the law or there is not.
Thank you Sundance.
Love that President Trump isn’t into putting a bandaid on the cancer.
Boo hoo, restaurants close, gas too high…
The Cancer has to be cut out for our survival.
It may “hurt”awhile but look what we gain.
We’ve become too comfortable and unwilling to give up minor “things”, to get a more safe future.
Thank God.
I thank God we have gas, food and shelter.
Because our President is working non-stop to cure the Marxist cancer.
They hired overseas workers because they don,t have to pay social security, medicare, unemployment taxes. They used to hire American college students for those jobs. They need to do it again. The wages everywhere need to go up so that young marrieds can afford to have children again and rents need to drop, which they will when foreigners have to leave.
Rich people demanding slaves is an eternal struggle.
Don’t forget the legitimate businesses and subcontractors that were forced to close due the being outbid by fraud businesses on contracts.
-spit!-
Thousands of restaurants will go out of business, because thousands of restaurants never had a real business model to maintain their existence.
And thousands put out of business deliberately by “covid:.
Put out of business by the governments.
Do not forget the legitimate family farms that were run out of business by massively subsidized corporate agribusiness and fraud labor.
“Don’t forget the legitimate businesses and subcontractors that were forced to close due the being outbid by fraud businesses on contracts.
-spit!-”
EXACTLY!
The Hamptons will survive.
I can’t wrap my head around just how greedy this seems from people paying the lowest possible wages and getting outrageous amounts of money for their “club”.
That’s not capitalism, but it is exploitation.
We also need to severely curtail welfare, all those leaches should be contributing rather than taking.
The large welfare cohort is a major reason for the perceived need of foreign born cheap labor.
Trump fixed that I think. Able bodied must work now.
It would be so colonial for one to consider that America’s Royalty on Welfare classes should take up menial and physical work! Now the Dem/Commies will be doubling down on cheating to get their Governing Triad back in control and their money machine running again!
As deportations continue,
there becomes more housing alternatives for the people remaining.
Econ 101:
Reduced demand for housing, and more supply of housing often leads to lower housing prices.
Recently, some housing markets have
switched from a sellers’ or landlords market (higher housing prices)
to a buyer or renters market (lower housing prices)
p.s.
Over time, that could lower the values of properties, on paper.
( but, the property tax billing folks will likely still find a way to increase their funds)
Maybe, over time, the value of housing will go back up as demand increases (with a happier populace willing to have families)
p.s.
but, the c-dems have other not good ideas,
that will be miss sold like wooden-nickels, as good… (many of which they do not share in real time)
… so, a u.s. native population increase is tentative… (untold, based upon honest elections, or not)
imho
Pardon me. Do have have any Gray Poupon?
But, of course!
THE HORROR!
We are out of foie gras…..!
These ultra rich people can afford to pay more! These Yacht Owners have boats worth 100 times more then my little house!! Deport them all!! 💁🏻♀️
Lots of cheap yachts soon to up for sale?
600,000+ a week should make a dint by years end.
Exciting news. I am suddenly optomistic.
Autopen signed to encourage breeding within cultural invasion..
The factual prose and creative chuckle of SD is reason #718 why I became a Treeper.
And how many people would still be with us and their families today if they weren’t murdered or killed by illegals who broke our immigration laws in the first place? Lives unexpectedly snuffed out, other lives ruined and not for a few moments but forever?
My empathy and sympathy and sorrow have been spent…
Whatever else might come, I’m fresh out.
Like this woman…and she is just one.
“It seems that an oversight either by the agent or attorney responsible for submitting our petition or perhaps by the US Immigration Office itself…”
B.S.
So if I don’t pay my taxes due to an “oversight” or blame it on the IRS, would that be acceptable?
Are these illegal aliens paying taxes?
Were there standard withholdings by the employer?
How much money was sent out of the U.S.?
Perhaps these agents, attorneys, owners, hiring managers, and HR people need to be charged under 8 USC 1324, and probably a few others sections.
Since the IRS isn’t gone yet, might as well do some tax audits of these places.
Round ’em up and ship ’em out.
Donny is smiling!!
Businesses across this formerly great and prosperous land, have the absolute civic responsibility to pay truly American citizen workers whatever wages are required for the business to operate…or SHUT DOWN THE BUSINESS, and leave a void for the next entrreneurial business person to attempt with his own vision. This is THE FREE MARKET ECONOMY
America by & FOR Americans….What a concept?!!
……You are welcome IF you are ALREADY AN AMERICAN ….. but not YET a citizen…..
do that bit THE RIGHT WAY and we are HAPPY TO HAVE YOU.
Sharia proponents ….nay….even SUPPORTERS …… need not apply .
Marco, thanks for ridin’ herd on the illegal H1B participants.
Deport them all.
Keep up the great work!
Thanks for putting all of the visa applications for review on hold until you retrain all of your employees ….. take your time.
Off the top of my head these industries are the ones where immigration enforcement is hitting most visibly.
Food Service
Trucking
Construction
Landscaping and lawn care services.
And child care/day care
The labor fraud created a fraudulent economy, and this reset is going to be significant.
Although, if government handouts were severely restricted to the point where half of the perfectly capable of working recipients had to go find work, they would accept a lower wage because the over supply of these people would force competition for the jobs and naturally keep wages and costs for the business down.
Lets see if the Chamber of Commerce calls for restricting and reducing government benefits in order to flood the workforce with Americans willing to work for less just to survive the loss of freebie handouts.
Chamber of Commerce needs RICO prosecution.
Honestly, I believe all handouts were going to H Ib or green card holders to begin with.
And tax breaks such as dependents back in the home country. You know the old. “I have a wife 15 kids back where ever.
Some of the cheapest-for-no-good-reason people hang out at those places. Getting something for little or nothing is their way of life, particularly when they can exploit others. Admittedly a generalization, but greed can be contagious and tantalizing.
How do I know?
The kids worked at a country club during covid, which was open and having events like a DeSwine entourage visit and weddings there too (another eye-opener of the covid scam). No tipping. They could have easily, but chose not to.
Another example. You know the envelopes that go around the office for loss of a loved one, someone got a new job, or other collection and card-worthy events?
Well I would coordinate many of the collections for the grundoons like me.
I would intentionally leave a known amount in the envelope, enough to make change, and deliver and pick up in-person with the Sr VP or VPs admin, or walk to other managers myself too.
Without fail, thinking they could hide their contribution among the bills, they put small amounts, like dollars or a $5 bill, while the underpaid Administrative Assistant (aka Secretary) put in a $20. Without fail.
I let her know their apparent lack of charity and suggested she re-calibrate. She did.
Their comeuppance is so “rich” as Sundance predicts.
The US Chamber of Commerce has had, for decades, great influence on The Congress of the United States to allow illegal immigration to flourish. The H1B Visa program is merely a sidestep in the illegal immigration issue.
Cheap labor was and is the main point. When the Immigration Reform and Control Act instituted criminal penalties for those employing illegal aliens the H1B program was there to sidestep those penalties.
The flood of illegals and some lawful immigrants has drilled many holes in the bottom of the Ship of State.
The small amounts of removals are not going to be able to plug the holes and right the ship.
I’m a homeowner nearing retirement, tail end Boomer. A drop in housing prices right now hurts a little, I’m in a blue state and taxes are up, but producer people are leaving. Not the illegals, we are a sanctuary state and the big city just spent a ton of dough to import more trans refugees and resist ICE muchly.
I’ve also go kids who are now young adults entering the workforce. I’m a veteran of one of the rudderless wars of hubris, I love my country deeply.
I’ll gladly take the hit of missing peak artificial housing market if it means a real American playing field for American young people.
Deport them all, bring in no more. Reclassify any “religion” that won’t let you leave it a dangerous cult.
MAGA.
I’ve owned my house for nearly 25 years and should be paid off in a little over a year, and not far from retirement as well.
Right now, I have no intention of moving, so I like housing prices to drop so my stinking rotten property taxes will go down at least a little bit, or at least not go up as fast.
And the illegals aliens need to GTFO.
Mormons?
I agree! I’m from Illinois too!
Best crop of tobacco I’ve seen out here in a decade. Much has gone unpicked
That is too bad. I might bail out the farmer before the illegals and see what happens next year.
Explain to me why the price of of “pre-existing” homes will drop “dramatically” if fewer new homes are built and the cost of those that are built increases because of less cheap labor? Fewer illegal aliens competing for the homes that do exist?
“With a predictable rise in wages comes the increased operating costs and diminished profit return for the investors and owners.”
While at the same time, rent costs will drop significantly. Pressure on the school systems will drop significantly, which should have positive repercussions for our taxes. Pressure on hospitals will drop significantly, reducing the number of the uninsured which must be serviced “for free” courtesy of the tax payer. Traffic should drop significantly, reducing traffic jams and vehicle emissions.
Will all of this even out in the end? I’m happy to admit that I don’t know, my point is simply that it is not necessarily the nightmare scenario that the Marxist Democrats will present to us, come November. Getting rid of these illegals will have positive benefits, as well.
“Pressure on the school systems will drop significantly..”
We’ve heard for years from teachers that the class sizes are too large. Whine and whine and complain.
Now that the illegals are going away with their children, the teachers want to prevent that. Fight ICE! Some districts now whine and complain about drop in enrollment.
So what is it… classes too big or too small?
In the end, they just want more taxpayer money.
😂 😂 😂 😂 😂 😆 😆 😁
pardon my skirting the rules,
but i’m laughing so hard at the headline, i can hardly focus to read the article.
🤣 🤣 🤣 🤣 🤣
This topic/thread/discussion could and probably should run ’till the election.
“Oh, look! The party that want’s their reparations are still in the slave business 161 years later!”
The possibilities are endless.
Ha Ha Ha Ha . Laughing my a$$ off.
MNN BREAKING…
* TRUMP DEPORTATIONS FORCE CLOSURE OF EAST COAST YACHT CLUB RESTAURANTS
BEFORE LABOR DAY!
“Sheldon Whitehouse Howell the Third!”
“Yes, Lovey?”
“What has that madman Trump done now? It was bad enough he stopped my USAID funding for my Oceanfront NGO. But now he’s deported all the indentured servants at our Whites Only Beach Club!”
“It’s outrageous, Lovey! Evidently, he takes that whole “American”-thing seriously. He could have at least taken them on Thursday so we could keep their paychecks!”
“What ever shall we do, Sheldon?”
“Don’t fret, dear. I’ve hired a new boy. He’s down at the Marina, and he knows his place!”
“Mr. Whitehouse says if I don’t get any darker, we can take a three-hour tour on his yacht, the SS Klanbake!”
Rest in the Vine: MNN’s Lost Weekend Report
If a restaurant or business hires mostly illegal invaders they deserve what’s gonna happen.
This “Yacht Club” isn’t much and doesn’t look like any larger Yacht’s can enter the narrow channel.
How can someone who is on a visa program get a bank to loan them $500.000 ?
This is a big problem and go see if you can get a loan for that amount in India.
Chip Chip Cheerio and now on to the Hampton mansions
Ginger or Mary Ann…..?
Many were thinking it….there….I said it. 😝
But you’ve been deciding for 50 years!
H1B site that follows employer applications. They are right out in the open.
https://layoffhedge.com/h1b
It is difficult for small businesses as mine to compete against these organizations that utilize unscrupulous labor practices as this.
I don’t even know how to hire an illegal without taking a risk.
Apparently, they have no such concern.
I believe a great deal of the problem is merely lack of enforcement.
I would hope this enforcement continues, and in theory, over time, everything will flatten out.
But… but…what about my Grey Poupon??!!?? I ordered Grey Poupon ans was was brought regular yellow mustard by someone who wasn’t brown. Oh, the inhumanity.
If they enforced this in Las Vegas, the place would revert to the desert.
Looking at that one photo of the airport – I see it is in Vietnam –
seeing the name SAMSUNG clearly indicated at the bottom of that tv screen on the top of the carousel, I wonder if SAMSUNG is a big jobs-maker in Vietnam.
According to AI, this is the arrival area for international passengers but it doesn’t seem very busy –
Vietnam actually looks like a wondrous and mystical place with all of those little mountains across the landscape – so much suffering was there and now the people have been working very hard to build up their country, supposedly “Communist” but there is an innate capitalistic drive, I think, as you can see here in California where many hard-working Vietnamese people arrived at the end of the war. I believe Vietnam is striving to keep the PRC’s mitts off – they do not want to be a vassal state of the PRC. Why don’t those wealthy Hamptonites in their jets dash over there and generate some business? Maybe they had better not – they would probably ruin the place!
There will also be a lot less ultra-rich since many became ultra-rich by profiting off of illegals. But I doubt that this will continue as it is all show for the election season. Tucker got them worried with his interview.
Oh, dear!! Does it make me a bad person that my (…continuing) response to both this post and the comments is – LOL – ?
My Saturday was already going very well (and will be baking an apple pie a little later … ) but this just kicks everything up a few more notches.
What wonderfully good news.
Champagne wishes and caviar dreams, on the next episode of Lifestyles of the Rich and Famous!
A cop friend told me that most of the street vendors are human trafficking victims that are forced to work to ‘pay off’ their debt.
So I am wondering. How many of the restaurant workers are also victims of the cartel?
— deleted —
So hire Americans to pass the Grey Poupon and get on with it.
But no one worried about small businesses going out of business when they locked everything down for “COVID” – while they kept the big stores open.
A reset is badly needed – we are driving 1000 mph off a fiscal cliff and it’s going to be a very rough landing.
Once the inorganic elements of the labor market are removed, the American culture can be restored to producing timeless B-rate classics like CaddyShack 😂
this is what I voted for.
Sundance explains – so well:
“Thousands of restaurants will go out of business, because thousands of restaurants never had a real business model to maintain their existence.
“The labor fraud created a fraudulent economy, and this reset is going to be significant.”
The connection between actions and consequences was not nearly so complex in the world many of us grew up in.
Fraudulent economies and fraudulent functioning are epidemic.
And they will just have to bring their own kleenexes to the wake because I’m not sharing mine.