Jobs Americans don’t want

President Bush is taking knocks from all sides in the immigration debate over his argument that the United States needs foreign workers to fill "jobs Americans don't want." Economists on both the left and right, however, say Bush is ignoring the role of "prices" and that more Americans would happily mow lawns and serve tables if those jobs paid more than they currently do.

Unfortunately, says the Wall Street Journal, if the U.S. could somehow seal the border, the country's labour market would adjust to the shrinking supply of labour; but America would become a less competitive and hence poorer country – because it would have less human capital, and because jobs would be done less efficiently.

For example:

  • Most economic studies have found only a very small negative immigration impact on the wages of even the lowest-skilled American workers; instead, immigrants often fill niche markets and bring varied skills.

  • Immigrants also increase the demand for labour, not just the supply; that is, they are also consumers who create jobs by buying goods and housing in the U.S.

  • The same jobs that foreign workers now fill would not exist in their absence; seal the border, and what you'd see is not the same number of jobs at higher wages but, rather, fewer of these types of jobs overall in the United States.

    Unlike some of his critics, Bush appreciates the absurdity of closing off U.S. markets to foreign labour but not to, say, foreign capital and foreign technology and foreign goods, says the Wall Street Journal. Bush also understands that immigrants play a key role in growing the United States economy, which doesn't exist in a vacuum and shouldn't have an immigration policy that pretends otherwise.

    Source: Editorial, Jobs Americans Won't Do, Wall Street Journal, April 7, 2006.

    For text: http://online.wsj.com/article/SB114437095931119553.html

    For more on Immigration: http://www.ncpa.org/pd/immigrat/immigrt.html

    FMF Policy Bulletin/ 18 April 2006
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