It’s Economics Too

The Blogfather had a bit on the illegal alien fiasco:

(Though on immigration, I note that the issue is more political than economic, really. See this post by PoliPundit for an example of what I mean.)

Of course politics are entering into this issue.  But let's look at the economics too, more from Glenn

A LOOK AT THE ALBERTA OIL RUSH: I'm all for big increases in oil production in politically stable places (bring on the Colorado oil rush, too), but I think that one upside of current high oil prices, besides bringing all this additional capacity online, is that it's getting people to look beyond oil as an energy source. I hope we'll see more of that, too.

Restating one could say, one upside of the current illegal alien worker situation is getting people to look beyond cheap illegal aliens as a labor source.  I hope we'll see more of that.  Because constantly pooring in new illegal low wage workers is not really helping our economy in the long run (have a look at this).

Our economy grows in the long term because of our innovation, technological and process improvements.  Just dumping in cheap labor temporarily boosts production, but not nearly as well as a boost in production that is less capital intensive. 

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