eyesopened
Posts: 2798
Joined: 6/12/2006 From: Tampa, FL Status: offline
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quote:
ORIGINAL: AnimusRex OK, I will wade into this once again. I posted on another thread (which I can't find now) that we have no problem with a globalized economy, where capital and property flow effortlessly across borders, but somehow labor cannot. Let look at an example- Suppose I own a cabinet shop, making kitchen cabinets for houses. If I hire Mexican craftsmen to build them, I am a criminal. The craftsmen live in Los Angeles, spend their paychecks in LA, pay SS taxes (paying into other peoples accounts!) and in general, act just like any American citizen living and working in LA. If I move the shop to Mexico and have those very same craftsmen build them, I am a clever businessman, entitled to enjoy my profits. The craftsmen live in Mexico, pay Mexican taxes, spend all their money in Mexico. So which scenario is preferable? Oh, and by the way- with a globalized economy, using American craftsmen is NOT an option. sorry, the cabinet marketplace demands low-wage labors. My point, is that the marketplace in America demands low wage labor for certain things like low skilled labor. We could attract Americans to these fields by increasing the minimum wage, but that seems politically unpopular. So we settle for an unworkable solution, which is to set immigration quotas artificially low, yet patronize businesses that use undocumented workers, all with a wink and a nod. AnimusRex, what you say makes a lot of sense. Not easy for me to fully grasp, since I am old and cranky and an isolationist at heart. I would love to see the system streamlined and reworked so that in your cabinet shop you could sponsor the craftsmen you needed and that you could pay them by contract at the wage they are happy with. Make it legal to use cheap labor here, rather than send the money out of the country. At the same time, there is a legal distiction between big business and small business that makes it attractive to remain a small business. Lets say your cabinet shop employs 40 people and your business is booming! You need 15 more people to really expand your shop and keep up with demand. (Please, people, I don't know the exact numbers of what constitutes small business and at what point it breaks, I'm using an example here and am really tired of nit-picky attacks) If you hire the people you need, you may go into a different bracket for taxation, insurance requirements, etc just because of the number of people you employ. Also, if you creep past the small buisness status, you are automatically at a disadvantage on that big state building project bid because they have to favor the small buisness. Therefore, it is to your advantage to pay people off the books than to hire what you need. It's not always about wages. If it were, I don't think it would be as much of an issue. I would venture to guess that most of the criminal employers are not looking for cheap labor, they are looking to keep employees off the books so they can avoid WC premiums, taxes, insurances and more. It's easier to find illegals to agree to be off the books than it is to find citizens willing to do so.
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