Tuesday, 05 November 2024

Congress: Biden's Migration Stalls Wages, Cuts Productivity

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Congress: Biden's Migration Stalls Wages, Cuts Productivity
Central American migrants, part of a caravan hoping to reach the U.S. border, move on theMoises Castillo/AP

President Joe Biden's high-migration economic policy will cut Americans' wage gains to just one percent per year in the early 2030s, according to the number-crunchers at Congress's non-partisan Congressional Budget Office (CBO).

“Increases in the supply of workers put downward pressure on wages, particularly for people with 12 or fewer years of education,” says a June 18 CBO report, titled “An Update to the Budget and Economic Outlook: 2024 to 2034.”

Wage gains will drop to three percent, but those gains are then reduced by predicted inflation of two percent per year after 2025, the report says. The result is a very small one percent post-inflation annual wage gain for Americans amid the ocean of new migrants delivered by Biden.

Biden's economic policy adds 8.7 million legal and illegal migrants from 2021 to 2026, the report says.

Wages climbed faster in President Donald Trump's low-migration economy.

Overall, Biden's immigration surge will fatten the economy by 2.4 percent over 10 years as his extra migrants take jobs, rent housing, consume food, and buy products, the report says.

But the report also predicts Biden's migration surge will raise interest rates —  and mortgage rates — will slow productivity growth.

Raising productivity is vital to future income and wealth because it measures how much value each person and their work equipment can produce per day.

Any productivity gain from the tiny share of Biden's migrants who are skilled — just 3 percent, say the report — is swamped by the inflow of lower-skilled migrants in low-productivity work, such as meatpacking. gains will be “more than offset in the early years of the surge by increases in employment in sectors of the economy that have relatively low productivity, such as services,” the report admits.

The predicts productivity gains from Biden's high-migration economy to be roughly 1.4 percent. But that score is below the prior gains of 1.5 percent per year from 2007 to 2024.

In contrast, China's government blocks migration and so has ensured productivity gains of about seven percent per year. Those gains exist because China's government also spends heavily to grow productivity via automation, robots, and cheap energy.  China's rapid productivity growth has delivered wage gains of roughly 10 percent per year from 2010 to 2021 to its Chinese population.

However, the U.S. government has a very different economic strategy: It spends heavily to import, settle, and aid migrants because it is trying to inflate the U.S. consumer economy and grow the stock market.

In June, the Washington Post described the rising Ohio population of male migrants from poor Mauritania, where average daily income is just $15. In Cincinnati, many of the Mauritanians work in a slaughterhouse where they indirectly feed other new migrants in the United States:

CINCINNATI — Oumar Ball was in a rush. The eight [Mauritanian] men crammed into his 2006 Honda Odyssey needed to clock into work at a [Koch Foods] chicken-processing plant by 4 p.m. It was 3:40 p.m. and the traffic on the Ronald Reagan Highway wasn’t moving fast enough.

As Ball wove through the cars, he toggled from one call or WhatsApp message to the next. One man needed help making a down payment to a lawyer to begin his asylum paperwork. Another wanted to know how many more days before he’d get permission from the U.S. government to work.

Companies and investors profit from the cheap imported labor. Government agencies also profit from low-productivity migration, in part, because Biden imports more clients for government poverty and health programs.

The CBO reported that the government spending on migrants up to 2034 will include $59 billion more in healthcare, $43 billion more in anti-poverty credits, and $35 billion more for food stamps, child nutrition programs, Supplemental Security Income, Social Security, Medicare, and assistance for higher education. The migrant spending is a cost to taxpayers — but it is also a stimulus giveaway to landlords and to companies such as Walmart.

The government will also pay more money to investors: “CBO also estimates that the costs for interest paid on the federal debt will be $84 billion more over the 2024–2034 period than they would have been without the [immigrant] surge,” the report said.

Much media coverage treated the CBO report as good news because it predicted Biden's migration would expand the economy by $8.9 trillion — or a cumulative 2.4 percent from 2024 to 2034 — and because it would generate more taxes than it causes more government spending.

“More Immigrants Boost Economy, Reduce Budget Deficit, Congress’ Nonpartisan Scorekeeper Says,” Yahoo! News reported.

“Immigration surge projected to boost growth over next decade, CBO says,” Axios reported.

“An ongoing immigration surge could reduce the nation’s deficits by almost $1 trillion over the next 10 years,” reported the German-owned, pro-migration outlet, TheHill.com.

But the media downplayed the costs — stalled wages and the missed opportunity of a different economic strategy that grows productivity by shrinking immigration.

“We always used to think [a] shrinking population is a cause for negative [economic] growth,” BlackRock founder Larry Fink said at a pro-globalist event in April hosted by the World Economic Forum in Saudi Arabia. He continued:

But in my conversations with the leadership of these large, developed countries [such as China, and Japan] that have xenophobic anti-immigration policies, they don’t allow anybody to come in — [so they have] shrinking demographics — these countries will rapidly develop robotics and AI and technology … If a promise of all that transforms productivity, which most of us think it will [emphasis added] — we’ll be able to elevate the standard living in countries, the standard of living for individuals, even with shrinking populations.

Fink oversees an investment fund of $10 trillion at BlackRock.

Extraction Migration

Since at least 1990, the federal government has quietly adopted a policy of Extraction Migration to grow the consumer economy after it helped investors move the high-wage manufacturing sector to lower-wage countries.

The migration policy extracts vast amounts of human resources from needy countries. The additional workers, white-collar graduates, consumers, and renters push up stock values by shrinking Americans' wages, subsidizing low-productivity companies, boosting rents, and spiking real estate prices.

The rarely mentioned economic policy has pushed many native-born Americans out of careers in a wide variety of business sectors, reduced Americans’ productivity and political clout, slowed high-tech innovation, shrunk trade, crippled civic solidarity, and incentivized government officials and progressives to ignore the rising death rate of discarded, low-status Americans.

Donald Trump's campaign team recognizes the economic impact of migration. Biden’s unpopular policy is  “flooding America’s labor pool with millions of low-wage illegal migrants who are directly attacking the wages and opportunities of hard-working Americans,” said a May statement from Trump’s campaign.

The secretive economic policy also sucks jobs and wealth from heartland states by subsidizing coastal investors and government agencies with a flood of low-wage workers, high-occupancy renters, and government-aided consumers. Similar policies have damaged citizens and economies in Canada and the United Kingdom.

The colonialism-like policy has also damaged small nations, and has killed hundreds of Americans and thousands of migrants, including many on the taxpayer-funded jungle trail through the Darien Gap in Panama.


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