Solve two United States problems in one policy change

Open boarders, open workforce.

Opening the boarders to the United States and eliminating the requirements of citizenship to be here would solve the housing crisis and change the direction of our economy.  Calm down, only citizens have the right to vote, but other people can be here, live by our rules, contribute to our economy and create wealth for all of us, pay taxes too.

What would be the impacts of this change:  Short, mid and long-term?  It is such a broad, wide ranging question it needs to be analyzed in bits:
  • Wages
  • Home Prices
  • Demand for government services
    • Education
    • Transportation
    • Water, sewer, other utilities
    • Police, fire, jail, health care
  • GDP
  • Retail sales
  • Population
I am not ready to discuss each point, but a couple macro-economic guesses.
  • Wages would be lower and the decline would be greater for lower skilled labor and less for high skilled employees.
  • Population would increase.
  • Homes would change more than prices.  More people would live in less space at the same or lower per unit cost.
  • GDP would increase, total economic activity would increase at a greater rate than closed boarders.

Do not get me wrong, there would be unpleasant consequences for some, great benefits for others.  We pride ourselves on our ability to compete, but our immigration policy is the most protectionist policy America has.  Changing our immigration policy now will have great positive impacts for our economy and environment now and into the future.  Get ready to compete America, and do not worry -  we can compete!

 

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Comments

  • 12/11/2007 9:40 PM MH wrote:
    This kind of comment can you get you in trouble! Some folks might even question your patriotism! (this is why I only used my initials for this post ) But, I would not.

    What if we spent a small fraction of the money we spend on enforcing our borders, etc. and instead helped build up Mexico. And yes, opened the borders!

    Mexico is a beautiful country full of good people and vast natural resources. Americans would only benefit.
    Reply to this
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