2015 September 04 Friday
Immigrant Flood, Declining Low End Wages, Higher Min Wage

We live in amazing times. America is being flooded by immigrants, mostly illegals. Their use of welfare benefits (paid for by the rest of us) is higher than natives at all educational levels. Is it any wonder that with the mainstream media promoting open borders that people are turning to Donald Trump no matter how many times the MSM dissing him?

Then there is the drive to raise minimum wage. It is a policy which is being promoted by the Left but whose biggest effects will actually work out to benefit people on the political Right. High minimum wage will speed up technological changes that will enable the cognitive elite to more thoroughly isolate themselves from the left half of the IQ Bell Curve. It will also slash demand for the low skilled illegal immigrants that much of the Left is so eager to flood the country with.

With so many governmental institutions coming out in favor of policies to speed autonomous vehicle development and policies to speed robotics development it is any surprise that the NY Times editorial board has come out in favor of a $15 per hour minimum wage? Think about how many fast food restaurant owners this sends a signal to.

This policy will produce new winners and losers. Consider fast food franchises. I am figuring that between sandwiches, burgers, burritos, tacos, and pizza one of them is much more amenable to robotic preparation than the others. My guess: pizza followed by burritos. But we might see new fast foods come to the fore just because they are easy to automate. The new automat Eatsa could be a winner. However, while the automat format seems set to grow it is far from clear that the Eatsa quinoa dishes are the best for full automation.

The winning fast food companies will be the ones who can automate years sooner. The losers will be driven from the field at $15 per hour minimum wage (along with a substantial portion of the high school drop-outs who are still working). Though the more adaptable will change their menus to switch to food that can be prepared by robots.

A big rise in minimum wage will slam into a labor market spoiled by a flood of compliant and cheap illegal aliens. In an article in The Atlantic (which predictably makes no mention of immigration's impact on labor supply and wages) this sentence leaps out: from 2009 to 2014 the pay of these low skilled occupations dropped 8.9%. Already most of the least skilled and least intelligent do not have jobs. The ones that have jobs are getting paid less and less.

Those who work as janitors, cooks, housekeepers, and home health aides had their real wages drop the most, as much as 8.9 percent

I'm thinking at $15 per hour minimum wage the next gen of autonomous floor cleaning machines will look a lot more attractive. Good for the robot makers.

America's elite has set us up to be major shafted by their immigration policies of the last few decades. Our future labor force doesn't have the right stuff: SAT scores at lowest level in 10 years, fueling worries about high schools.

Americans live in a country with an incredibly irresponsible ruling elite. But their crazy ideas on minimum wage could work wonders in spite of their motivations for pushing it.

Share |      By Randall Parker at 2015 September 04 09:38 PM 

bob sykes said at September 6, 2015 6:18 AM:

Middle class earnings and even the median income are also declining. This has been going on for 30 or more years. Recent immigrant waves exacerbate the trend, which has additional components like women entering the workforce, free trade, etc.

The income trends suggest that real per caput GDP is declining and has been for a generation. What is the real American economy, and where is it going? Detroit, Newark, Compton tick, tick, tick.

Brett Bellmore said at September 7, 2015 2:48 PM:

Not just income trends. Back in the early 1980's, the government changed the way it calculated inflation, to make inflation look smaller. They changed the calculation again in the 90's.

By 1980 standard inflation calculations, inflation is currently running about 8% per year higher than the government admits. Adjusting GDP figures by that standard, and not the latest, GDP growth flatlined in the mid 80's, and has been negative since the early 00's. Yes, the US economy is shrinking in real terms, which makes a lot of sense of what you see around you. (If you don't happen to live in one of the dozen or so counties where the Federal government lives, where the economy is going gangbusters.)

Alternate Gross Domestic Product Chart

They've been rigging the figures they put out for 2-3 decades now, to hide the decline in the economy.

Seth W. said at September 7, 2015 4:57 PM:

Meanwhile more than 11,000 Icelanders are offering to house Syrian refugees to help European crisis... Wow!

So much for American solidarity with the rest of the world. The U.S. continues with the old school "every man for himself", and this stinks. On top of that we have clowns like Donald Trump spewing the selfish hatred that destroys the soul of a nation. That seems to happen every now and then: Back in the late 30's more than 90% of Germans supported Hitler's rabid discourse. It is true that when a nation has been subdued into fear for enough time it becomes moronic. FEAR IS THE FATHER OR CRUELTY. And boy are we affraid... I refuse to follow shoddy "leaders" like him.

When everybody thinks alike is because one thinks for everybody.

Dan said at September 8, 2015 8:38 AM:

@Seth W., fools like you are the precise cause of deaths like that of the Syrian boy who washed up on the Mediterranean. His family were economic migrants who were already in the safe NATO country of Turkey.

Flight of third worlders toward the rapidly declining first world countries is no solution. Meanwhile, if people from developed countries try to get involved in countries where there are failed governments, they will be labeled as colonialists by wreckers like you.

If all you can do is scream 'Hitler' over and over when a nation aims to respect its own borders, then at least direct your screams at nations that are genuinely hostile toward foreigners, such as India, Pakistan, Japan and many others #rather than against the nations that have been most generous of all#. Should Israel also dissolve its borders and cease to be a nation or do you feel differently about that instance? If they listen to your screams of 'Hitler', 'Hitler' and abolish their border they will be Holocausted a second time. Maybe you are not on the side of civilization after all.

Dan said at September 8, 2015 9:38 AM:

Where @Seth really shows his undeveloped moral and intellectual sense is in his complete failure to recognize the extreme evil at the center of the very crisis he is talking about. The Islamic Fascism of ISIS, with its slavery of women and children, its crucifixions, burnings and bloody territorial expansion is the only thing in our modern world where Seth's analogy could possibly apply. It is truly a malformed mind that brings up 'Hitler' at every opportunity and then when something resembling that moral abhorrence appears he uses the term on the very countries fighting against ISIS.

Maybe Churchill was like Hitler for not opening his border to Germans during WWII.

William said at September 8, 2015 12:45 PM:

H1Bs are driving down white collar salaries. Immigrants shamelessly hire more immigrants, even for jobs they're not qualified for. Personally, I've seen hardware engineers hired into IT jobs because of the immigrant networking. Hardware and IT are totally different careers.

ErisGuy said at September 9, 2015 4:42 AM:

IMHO, the most likely consequence of the collision between a high minimum wage and millions of unskilled illegal immigrant workers is Zoe Baird: illegal, low-paying employment, which benefits corrupt businesses (who must pay protection to corrupt politicians) and corrupt politicians (who have a pool of impoverished, begging voters, probably illegal voters). The only solution is restriction of the franchise.

Seth W. said at September 9, 2015 3:06 PM:


Today, most of the countries that have failed governments are so because the U.S. has wrecked them: Syria, Lybia, Iraq, Vietnam, Mexico, Central America. The U.S. should now be called "Stomachland" because everything it touches is turned into shit, while idiotic kids like you continue to have their heads up their ass.

"Should Israel also dissolve its borders and cease to be a nation or do you feel differently about that instance?"

Yes, Israel should dissove its borders, in fact Israel should never have become a country. Israel stole a country called Palestine, -just because God told them- but the history you've learned comes from Sylvester Stallone movies. Besides, the rest of the world is getting pretty sick of Jews holding the copyright on tragedies. Everything with the Jews is "how much they've suffered".

"Where @Seth really shows his undeveloped moral and intellectual sense is in his complete failure to recognize the extreme evil at the center of the very crisis he is talking about."

There's no such a thing as "evil". You're so cute... and the return of slavery is also happening in the U.S. All those poor tortured women you see on your porn sites (bondage) who shout in English because they are threatened by those behind the cameras ARE in slavery; but like I said before, you have your head all the way up your ass. You really enjoy that, don't you....

The Islamic Fascism of ISIS, is only the reactionary product of what the U.S. has done there arming renegades to kill children and overthrow legally established governments like Hussein, Khadafi, Hugo Chavez, Salvador Allende, etc.

You bore me, but if you want to insult, because I give my opinion, go stick it up your mother's cunt.

Seth W. said at September 9, 2015 3:07 PM:

Immigration is not a political issue. Immigration is a human issue. It has nothing to do with nations.

Engineer-Poet said at September 9, 2015 7:18 PM:

Mass immigration is both a human and national issue.  Mass immigration is genocide.

The vehemence with which Seth W. attacks and vilifies the opponents of genocide proves that his ancestors should not have been allowed to immigrate.

Check it out said at September 10, 2015 4:53 PM:

Once upon a time, the people of the Southern Lands lived together, usually in peace. Sometimes there was a skirmish over land or grazing rights, usually solved by a meeting of the Council and rarely did it develop into a battle. The land was fertile, people had plenty to eat and plenty to drink.
But gradually, the skies darkened, the wind blew cold from the North and something sinister brewed in the Big Sea on the horizon. The boats brought marauding bands of white barbarians who plundered the lands, raped the women, slaughtered the men and children and set up colonies along the coastline, channeling the resources they stole into them to ship them off to the Northern Lands on the other side of the sea.

They did the same elsewhere across the Great Ocean to the West but the people there fell sick and retreated into the forests so the white men of the Northern Lands rounded up the peoples of the Southern Lands, packed them into ships, chained together with just enough room to sit, transported them for months across the water half-lying in a sea of excrement, then sold them like cattle as slaves, torn away from their wives and families. Many of those they sold as slaves were better educated than their captors, and were murdered for reading or writing.

As if this were not enough, the white men of the Northern Lands moved out of the colonies they built, and not only stole the jobs and livelihoods of the peoples of the Southern Lands, but ruled them as their self-elected governors and murdered those who resisted, strafing entire tribes with machine guns - they had not yet invented flying machines - crying "shoot when you see the whites of their eyes". As time went on, they educated the leaders of the Southern peoples, teaching them their own standards and rules, which might have made sense in the Northern Lands, and used them to direct the resources of the Southern Lands northwards. Those who refused were removed and murdered, and the second most powerful group was placed in power, knowing that they would remain there so long as they supported the white men and ensured a continuation of resources flowing in one direction - outwards.

These policies destroyed the social and ethnic fabric of the Southern Lands - hundreds of millions of people were directly affected - and the economic balance which had ruled the Lands for thousands of years was turned upside down within a few decades.
As the Northern Lands continued to plunder and murder abroad, they also fought amongst themselves, exhausting themselves in two Great Wars. After the second, a New Power arose from the East, a new socio-economic model geared towards social progress and development was offered to the Southern Lands and help was provided for them to free themselves from the yoke of imperialist tyranny.
This achieved, the New Power set about building schools, hospitals, highways and other social infrastructure, educated millions of people to University level and prepared them to coexist in a world dominated still by the white men from the Northern Lands and their colonies across the Great Ocean.
Jealous that another Power was dealing with those it had oppressed for centuries, the Northern Lands set about sabotaging the socio-economic model of the New Power and spent trillions of dollars in blocking and destroying the progress it had made. The new education systems set up in the Southern Lands, which were within thirty years producing students better qualified than those in the Northern Lands, collapsed and were turned into businesses, the healthcare systems followed and the Southern Lands fell back into economic limbo, caught between their roots and a modern world which was not supposed to cater for them, but rather to bring their resources northwards.
To ensure the continued flow of these resources, bad men were backed to fight the leaders collaborating with the New Power and these bad men ruined their lands even further, syphoning off tremendous amounts of money into their own accounts in banks based in the Northern Lands as a reward for their services.
A few good leaders resisted. Loved by their people, it was impossible to remove them by democratic means, so the Northern Lands used a new tool - terrorism, to create mayhem and chaos and anarchy in their societies, to the point where the authorities collapsed and the Lands were invaded by gangs of heavily-armed bandits who pillaged villages and towns impaling children on stakes, beheading boys for worshiping the wrong God, slicing the breasts off women in the streets, raping the decapitated bodies of others, setting fire to old ladies and torturing men to death, gouging out their eyes with spoons and tearing out their hearts, eating them while they were still hot and pumping with blood.

Terrified, the residents of these Lands fled. They were the Desperate People. The Rich Kings of the Middle Lands to the East, those who preached piety and adoration of their God but spent their free time committing sodomy with young boys in Morocco while drunk on spirits from the Northern Lands (where else?) spoke much about helping these Desperate People. They spoke but slammed their doors shut.
So the Desperate People had nowhere to turn except to the Northern Lands, which had colonized them, enslaved them and stolen their resources - many had relatives living there, others claimed the right to asylum because the activities of the Northern Lands over the years had made their lands uninhabitable.

After centuries of arrogance, bullying, chauvinism and devastation, the Northern Lands also slammed the door, saying these people had no right to live in the North and had to fend for themselves.
We are all Aylan, the three-year-old Syrian boy found lying face down, drowned, on the Turkish beach of Bodrum, along with his five-year-old brother Galip and their mother, Rihan. Canada refused their application for asylum as they fled the terror of Islamic State in Kobane. They died at the gates of Europe. Welcome to the European Union.

Check it out said at September 10, 2015 5:13 PM:

Americans feel passionately about most everything, they sometimes think rationally about very little. This accounts for itself in varying degrees but when the issue concerns human beings, emotionalism is the only argument which carries any weight whatsoever.

The US led "coalitions" of recent years have, it seems, moved on from destroying towns, now entire sovereign nations are laid to waste to free, liberate,
and democratize them. The cemeteries and ruins of much of Afghanistan, Iraq, Libya are recent silent witness to this munificence, with Syria set to be the latest centre of the eye of the storm.

Syria's President Assad said in an address to the nation: "The West calls it 'terrorism' when it hits them, and 'revolution, freedom, democracy and human rights' when it hits us.'

lord of the rings said at September 11, 2015 5:50 PM:

What's wrong with you? What's with all that nationalistic crap? This country was built by immigrants. You yourself come from immigrants.

You wouldn't miss the chance to kick frightened immigrants like that hungarian bitch reporter would you, and Dan talking about moral sense, wtf!!!

Some people really get off of making an immigrant's trip a little harder. What the hell has gone wrong with people's brains in this country, most people anyway.

Imagine if some day we were being invaded or had some sort of crisis and had to just flee for Canada, and imagine that the Canadians were there waiting at the border just to make our efforts a little harder. Or Mexico for that matter.

This lack of empathy towards other human beings does show a very specific mental illness.

Cut it out guys! Just drop it!

lord of the rings said at September 11, 2015 5:55 PM:

The Mexican government showed quite some solidarity and helped so many when Hurricane Catrina devastated around. Their army came fully equipped with great trucks that installed so many communitary kitchens where they fed and watered so many desperate citizens, while the American army was shooting at citizens for taking water from stores.

Just stop this racist crap, because it is just a racist crap! Don't go on spreading this hate towards other human beings.

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