The immigrant 'cheap labor' myth
By Jon E. Dougherty

In nearly every news story, report or analysis of the nation's illegal
immigration problem, it is presented as fact that cross-border
migrants have a net positive economic effect on U.S. communities.

Perhaps that's no surprise, given that the U.S. government maintains
this. In the 2005 Economic Report of the President, which touts
President Bush's work-for-amnesty program, the administration
observes, "Immigration has touched every facet of the U.S. economy and
America is a stronger and better nation for it."


In reality, however, this "fact" is a myth. The truth is, immigrants -
legal and illegal - inflict a net drain on the U.S. economy, when you
factor in all of the expenses associated with providing them taxpayer-
and consumer-supported benefits and services.

While it is true there are some industries benefiting from cheap labor
- agriculture, for one - bare-bones, unbiased, non-partisan statistics
prove beyond reproach that illegal immigrants are costing the nation
much more than they contribute to it.

"The National Research Council has estimated that the net fiscal cost
of immigration ranges from $11 billion to $22 billion per year, with
most government expenditures on immigrants coming from state and local
coffers, while most taxes paid by immigrants go to the federal
treasury," says an analysis by the Center for Immigration Studies.


The net deficit is caused by a low level of tax payments by
immigrants, because they are disproportionately low-skilled and thus
earn low wages, and a higher rate of consumption of government
services, both because of their relative poverty and their higher
fertility.

This is especially true of illegal immigration ... Even though illegal
aliens make little use of welfare, from which they are generally
barred, the costs of illegal immigration in terms of government
expenditures for education, criminal justice, and emergency medical
care are significant.


The costs are worse for border states. CIS estimates California
taxpayers spend upward of $3 billion to $4 billion per year providing
services for illegal immigrants. The Federation for American
Immigration Reform, another group seeking common-sense border
policies, says Texas spends even more - "more than $4.7 billion per
year for education, medical care and incarceration," or about $725 per
Texas household "headed by a native-born resident." Even factoring in
the economic "contributions" made by illegal migrants, FAIR says
Texans still shell out about $3.7 billion per year.

Where is all the cash going? Quite simply, it is going back to Mexico.

The BBC reported last year that remittance payments - money sent back
home by migrant workers - reached $140 billion globally. Of that
amount, say separate studies, nearly $17 billion was sent to Mexico by
its migrants working "abroad" (meaning in the United States), making
that infusion of hard currency the second-largest source of income for
Mexico after oil revenues.

In fact, Mexican migrants working in the United States have even
formed collectives and associations, which in turn help spur economic
development in the migrants' home states and towns across the border.

Americans, by and large, are not a selfish people. While we contribute
billions to scores of charities every year, our government acts as one
of the world's most generous benefactors. Washington's foreign-aid
payments alone overshadow some nations' annual budgets.

In terms of relations with our southern neighbor, much of our economic
foreign policy in this hemisphere has been a direct benefit to Mexico
City. The North American Free Trade Agreement (which, by the way, was
supposed to curb illegal immigration), has been worth hundreds of
billions of dollars to Mexico, while costing the United States in
terms of job and economic loss.

NAFTA is just one example. Remember the 1995 Mexican peso bailout?
While the International Monetary Fund is credited with providing the
actual funding, a substantial portion of Washington's nearly $14
billion annual foreign-aid budget goes to the IMF and World Bank.

On top of all this, the State Department says the U.S. government
provided more than $33 million in stand-alone foreign aid to Mexico
last year alone.


Yet Mexican leaders and politicians - in tandem with U.S. immigrant
"rights" groups and sympathetic legislators - bemoan the United States
is not doing enough for these "selfless" migrants, most of whom are
supposedly doing so much good for the American economy. Some Mexican
leaders, including President Vicente Fox, are so focused on pawning
off their nations' economic problems on U.S. taxpayers, they have even
gone so far as to insult American minority groups.

You want to talk bottom line? Well here it is: There is nothing
"cheap" about the Mexican "cheap labor" myth, especially if you're an
American taxpayer.


Jon E. Dougherty is the author of "Illegals: The Imminent Threat Posed
by Our Unsecured U.S.-Mexico Border," and founder of the online daily
Voices Magazine.