Tuesday, October 25, 2016

Hillary’s Open Border Suicide

The True Terror of Hillary’s Open Border Dream

The WikiLeaks are raining upon the free world. Among them are a number of scandals, bad ideas and examples of corruption. Handling them all may take some time, but one idea in particular is exceptionally terrifying: open borders.

In one of her paid speeches, Clinton talked about a dream to open borders in the U.S. and establish and American continental system that mirrors the system used in most of Europe. The security risks of such a system are obvious, but how would the economy work? Here’s the answer.

Comparing States
Understanding the sheer magnitude of open borders in North America is no easy task. Even trying to anticipate just how much change it would encompass requires looking at similar systems in history. In the modern world, the closest approximation would be the European Union (EU), and it still falls short.

Just to get an idea, the EU has 743.2 million residents across 1.7 million square miles. The Americas are home to 1.002 billion people across two continents and two hemispheres. The scales don’t directly correlate. Even so, it is still the best place to start.

The EU has a combined GDP of $16.27 trillion. More than half of it comes from the five biggest economies: Germany, the UK (they haven’t successfully left yet), France, Italy and Spain. These countries essentially carry the Union as a whole, economically.

A few other important numbers from the EU would be an unemployment rate of 8.6 percent and a percentage of the population below the poverty line, which sits at 9.8.

Comparing the Americas, every number is much bigger. The total GDP is $24.6 trillion, but $18.56 trillion of that is from the U.S. This is an insurmountable disparity, but more on that is coming later. The unemployment levels in the Americas are much wider than the EU, ranging from 4 percent to over 20 percent.

Most importantly, the poverty line for Latin America (excluding only the U.S. and Canada) is above 20 percent. Some estimates go as high as 31.6 percent.

Accounting for the difference in scale, an American system that mirrors the EU would be monumentally more difficult to implement and regulate, at a minimum. More likely, it would be the most devastating economic venture the world has yet seen. Let’s look at some of the reasons why.

The Gritty Problems
The EU has had some successes, but overall it is an experiment that has failed. Brexit is only a manifestation of that truth. In reality, the top five economies have handled the debt burdens of over a dozen different countries that have defaulted on loans from the central banks.

Those loans were necessary to bring individual economies on par with the rest of the Union so trade could effectively cross the borders. It’s important to note that more than 60 percent of all trade for any EU member nation is with other member nations. Comparing that to the Americas shows just how impossible such a system is.

The biggest issue comes from the disparity between the U.S. and the rest of the region. The U.S. economy rises, and periodically eclipses that of the entire EU.

The next largest economy in the Americas is Brazil, with a GDP of $2.35 trillion. This is a country that is struggling on all levels to maintain economic sustainability, and they’re number two.

The second most stable economy is, of course, Canada, but their GDP of $1.79 trillion is nowhere near enough to handle the insurmountable debt burdens the rest of the continents represent. In order for the rest of the Americas to be able to trade with the U.S. on a similar footing of the EU, the loans would exceed the global GDP.

Even if equal trade is literally impossible, there are still ways to attack borders. Opening them for workers to travel freely is another common ideal touted in the same spirit as Hillary’s email. Once again, there is an insurmountable disparity.

The population of the U.S. is already close to one-third of the combined Americas. Despite that, there are nowhere near enough resources to rapidly increase the population by even 10 percent. In an open border system, the competition to get an American job will spike so dramatically that a heavy portion of U.S. born workers will inevitably lose their jobs.

It seems silly to state such obvious facts so clearly, but open U.S. borders just are not feasible unless the rest of the Americas can establish stronger economies and acceptable regulation first. It is not something that could be accomplished in a single presidency.

Open borders is either a pipe dream or political pandering. In either case, it is typical of the Clinton Campaign and is just as dangerous and destructive as the majority of policies coming from that side.

Regards, Ethan Warrick, Editor Wealth Authority


Comments

The US government cannot afford to continue to increase spending.  We need to unleash our own Private Sector to pay off our own debts.  Open borders is fiscal suicide.

The countries in South America will have to increase economic freedom and allow the Private Sector to grow. This will require that they make their government sector smaller and less expensive.  Each country would concentrate on taking advantage of their resources.  Nothing should be done with borders or sovereignty until this happens,  After that, voters should determine whether or not “mergers” would be mutually beneficial. 


Norb Leahy, Dunwoody GA Tea Party Leader 

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