Wednesday, December 18, 2013

Immigration & Off-shoring

Legal Immigration took a jump in 1989 during the global market hype under the codename “diversity”.  The U.S. doubled legal immigration and has issued 1 million Green Cards, on average, each year since 1989.  During the same time period, illegal immigration jumped to 20 million and has diminished since to 12 million, based on job unavailability.  US workers have become accustomed to under 5% unemployment since the 1950s. 

The tech boom of the 1980s in the U.S. got a second boom by exporting old tech hardware and software to other countries as these countries became capable of putting this technology to work.  During the 1970’s and 1980s, durable goods manufacturers moved overseas and foreign auto imports became dominant.  Advances in computer-controlled automation were made that improved quality and through-put.  During the 1990s most U.S. automotive and electronics manufacturers moved overseas.  Foreign auto makers did establish U.S. based manufacturing, but by 2000, most other manufacturing jobs were gone and those remaining moved overseas.  The service economy did not pay as well and many Americans lost manufacturing jobs and took lower paying jobs.  Real unemployment grew to 25% by 2013.

The combination of off-shoring manufacturing and increasing immigration resulted in the systemic double digit unemployment we have as we end 2013.  The build-up of immigrant workers had its effect on service job availability.  In the 1980s, we saw jobs in grocery stores, lawn mowing and retail previously held by teenagers going to new immigrants.  In round numbers, the U.S. economy has created 150,000 jobs per month, on average.  U.S. students entering the workforce also averages 150,000 new workers each month.   New immigrants also average 150,000 per month.  We’ve had decades of 300,000 new workers each month competing for 150,000 jobs.  Unless immigration is pared back severely, real unemployment in the U.S. will continue to climb to 50%.

Sources: DHS Immigration Table 1, 2012, True Unemployment politicalvelcraft.org

Norb Leahy, Dunwoody GA Tea Party Leader

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