Sunday, October 18, 2015

Wondering about immigrants, illegal immigrants, outsourcing, exports and imports

Many US citizens have unfounded economic concerns because the media, politicians, and powerful special interests (e.g., unions) inundate them with misinformation and bad economics.  If you hear too many people saying the same wrong things, you are likely to believe them – unless you are educated enough to understand why they are wrong.  People used to think that the world was flat.  That changed only when they became educated.  When it comes to economics, Flat Earthers are alive and well – and are in the majority.

Here are some things for the Flat Earthers to consider.

If more illegal Mexicans working in the US implies less work for US citizens, doesn’t a US birth rate that exceeds the death rate also mean less work for US citizens as children grow up?

Illegal Mexican workers can be eliminated by providing them with work permits.

If Mexican working in the US eliminate US jobs, how about annexing Mexico as a 51st State?

If Mexicans working in the US is bad, does that mean that Mexicans working in Mexico is good?  If so, isn’t it good when US firms outsource to or build plants in Mexico?

If US exports are good, aren’t US imports good, too?  Where would foreigners get dollars to pay for US exports if there were no US imports?

If it were possible, wouldn’t US imports without US exports be preferable to US exports without US imports?  Wouldn’t you rather receive Japanese cars free than give American cars to the Japanese free?

Do you think that a new car factory that produces cars at less cost is desirable?  Imagine a car factory in San Francisco where you put corn in and get cars out cheaper than making the same cars in Detroit.  Is this good or bad?  If you choose bad, please call me.  I have things to sell at exorbitant mark ups.  If you choose good, do you care how the corn is converted into cars?  If not, what if the factory in San Francisco is a pier where corn is shipped to Japan and cars are received from Japan?

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