I always like to go out with a bang…. so for the last Clark Report of the year (I’m taking a vacation), I wanted to address one of the most heated topics weighing on our society, illegal immigration.
At a holiday party this past weekend I found myself speaking with a prominent pediatrician and in the midst of chatting I remarked that she must be busy at this time of year, especially with the colder than usual weather. Surprisingly, she wasn’t. She went on to explain that the preventative care available for children has limited the occurrence of illnesses dramatically. The only increase that the hospital is seeing is coming in the form of illegal immigrants that don’t have the means or know how to implore these preventative measures.
It’s an undeniable fact that many government programs are being crushed under the weight of illegal immigration – most notably and seriously, health care.
Illegal immigrants don’t qualify for government health programs and businesses that hire them tend not to offer health coverage of any kind. As a result, when illegal workers become sick or injured they inevitably take the only route available to them: they head to the nearest emergency room.
Hospitals are required by federal law to provide emergency care regardless of patients’ visa status or ability to pay. Thus, some areas of the country have experienced a tremendous drain in health care resources as illegal immigrant populations have risen. Prisons and schools also face major hurdles in accommodating the expanding illegal immigrant population.
But every coin indeed has two sides...
Other governmental programs actually benefit from the presence of illegal immigrants, particularly Social Security and Medicare. Both programs, intended to benefit the elderly, receive billions in tax revenue from illegal immigrants. Unlike normal taxpayers, however, illegal immigrants will never be able to recollect their benefits later on down the line, thus providing a windfall.
Illegal immigrants also have a huge impact on wages and industrial production.
While it is true that illegal immigrants drive down wages, the situation becomes less cut-and-dry when we stop to consider that they also drive down the cost of almost all goods and services for all consumers. Thus, by working for such low wages, illegal workers actually increase the spending power of Americans. So even though Americans’ paychecks might be a bit lighter because illegal immigrants are willing to work for so little, their dollars are also stretching further.
Perhaps the most significant impact that illegal immigrants have is in the industries where they work.
According to the U.S. Department of Labor, almost half of America’s farm workers are in this country illegally, and Agriculture isn’t the only industry hiring massive amounts of illegal workers. Trailing closely behind are restaurants, construction, food processing, landscaping and the hospitality industry. In other words, many, many American businesses count on the sturdy work ethic and strong backs of illegal workers to stay afloat.
Financial analysts have even begun warning clients that if restrictive immigration legislation is passed at the federal level, stock portfolios heavy on these industries could suffer considerably. I can attest to that in my personal practice.
Another rarely discussed consideration is the fact that illegal immigrants often fill jobs that would otherwise be outsourced, further widening the already ominous trade deficit.
Illegal immigrants do take jobs from Americans on occasion, but they also contribute significantly to a number of important U.S. industries in a way that American workers simply can’t. To assume that business as usual can continue in America without them is myopic.
I once heard a guest on a nightly cable show utter a sage remark in sarcasm. He said that at the U.S./Mexican border there are two signs:
"Help Wanted" and "Keep Out!"
Illegal immigration is a crucial issue that needs to be addressed to ensure our national and economic security, but let’s not forget that this nation was founded by immigrants. For the most part, they are just searching for what our forefathers were; a better life. It’s my hope that we can work together to find a solution that will allow this country to continue to be a land that other people dream of living in.
Happy Holidays and Feliz Navidad.
This column is for entertainment purposes only and should not be construed as investment advice. Please view our complete disclaimer here.
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