The majority of the American population is not fluent in economics.
I agree with you, but supply and demand are relatively well understood, as they are not just given in an Econ course, but also business math. And supply and demand is the basic equation that results in wage-setting.
I feel as though I’m being misinterpreted as to believing that there is something wrong with supply-and-demand graphs when really I’m saying that accurate statements of labor and economics can not be made solely on that graph.
Fair enough, but perhaps to rephrase: there is no scenario where a surplus of workers in a given segment results in other than downward pressure on wages. Whether those wages actually DROP or not, and how far, is indeed subject to a multiplicity of variables which are beyond the scope of the average person. But it is always true that a surplus of labor creates downward pressure on wages.
Undocumented immigrants pay payroll taxes through their employer.
Let’s qualify. If the only person breaking the law is the illegal worker, and they’re not breaking any laws other that being present in the US, then they pay neither income nor payroll taxes, because they’re getting paid in cash. Yes, if they or their employer are *also* engaging in fraud by using forged documents (or the employer is ignoring documentation requirements) then yes, they’re paying income and payroll taxes.
But even at the local level, it’s not a 1-for-1 ratio of American-born workers being replaced.
Agreed. My only point is that regionally, US workers may very well see themselves as being displaced, while more broadly, the net economic effects of the illegal immigrants is a net positive.
And I really question the true impact of immigration of any kind on job prospect and wages when much larger trends have had a much larger impact on industries and employment than immigrants, such as automation, the retail bubble, and outsourcing.
Although that’s correct (that automation, globalization, and information revolution have caused more job loss than those lost to immigrants) the fact that the number of those working class jobs is shrinking makes the competition for them even more fierce, and those hoping to find one even more hypersensitive to the possibility of jobs lost to illegals.
But thank you for replying, I value criticism as a way to refine my arguments. I’m relatively new to penning articles and will be making edits to my original article to clarify points that I now feel may have been misinterpreted.