Wednesday, October 06, 2004

Tax Three - Immigration Control

The Pure Investor knows the immigrant is the high octane fuel of the U.S. economic engine. As James P. Smith, the chair of a National Research Council report entitled The New Americans: Economic, Demographic, and Fiscal Effects of Immigration, stated “Immigrants may be adding as much as $10 billion to the economy each year”….”As the National Research Council report found, “Immigrants labor allows goods many goods and services to be produced more cheaply, and provides the labor force for some businesses that otherwise could not exist.”

From The Pure Investor

I’m not talking about illegal immigration. But simply the legal immigrants that are allowed to come in to this country and do whatever work – usually entry level – that they want to do.

As I wrote in the book:
When a politician advocates a plan to control immigration, he is reducing the supply of competition for possible employees. With fewer competitors, the price of labor rises, the pool of talent declines, and companies become less profitable. The Pure Investor’s returns are reduced.
How do Bush and Kerry match up on this tax? I honestly don’t know.

Have either advocated increasing or restricting legal immigration? Not that I know of. Bush has advocated granted some kind of amnesty/guest worker/cave-in to illegals. I hate the idea of rewarding the fact that an illegals first act in the U.S. was to break the law even if it does increase the labor pool, so Bush gets no credit for that in my book. I have never read anything Kerry has to say about it.

So on Tax Three – Immigration Control….a draw.

Stay You.

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