Immigration

The Shortcomings in Trump’s Foreign Policy

Donald Trump has been a very unique presidential candidate, to say the least, and his uniqueness stretches all the way to his positions on foreign policy issues. His position on foreign policy involves: building a wall on US Mexico border and making Mexico pay for it, defeating ISIS, and establishing new immigration controls to boost American wages. At face value all of these ideas, except maybe building a giant wall on the southern border, may seem like good ideas. After all, boosting American wages would mean that Americans can buy more stuff, right? Well, this is actually not true.

Boosting American Incomes

Trump’s plan to boost American wages would actually hurt the US’ economy and cause American incomes to decline. The reason for this unexpected outcome is that limiting the possibilities of immigrants to gain employment means that lower wage positions will go to Americans. These Americans will demand higher pay than the formerly employed immigrants. Since business owners will be forced to pay employees higher wages, the cost of goods will increase. This means that all Americans will be paying higher prices for goods. As a result, Americans would have less discretionary income. This would lead to demand for higher cost services declining and could further lead to a decrease in employment among higher salaried careers.

Building a Wall

Trump’s proposal to build a wall along the Mexico border would be incredibly costly, costing around $15 billion to $25 billion. Mexico’s president, Enrique Peña Nieto, has also said that Mexico is not paying for a wall at the US border. Despite President Nieto’s statements, Trump continues to say that Mexico will pay for the wall. However, Trump actually has no way to effectively force Mexico to pay for the wall. Additionally, Trump’s plan does not take into account the many underground trafficking tunnels, which could be used to smuggle drugs and people. These underground tunnels are at times very sophisticated and large. For example, US law enforcement officers found a tunnel that ran all the way from Tijuana, Mexico to San Diego, California.

Defeating ISIS

Trump’s plan to defeat ISIS is even worse than his plans to “boost American wages” and stop illegal immigration. This is because his plan to defeat ISIS is largely non-existent. The only thing it says on Trump’s website about defeating ISIS is that Trump will:

Work with allies in the Middle East and “pursue aggressive joint and coalition military operations to crush and destroy ISIS, international cooperation to cutoff their funding, expand intelligence sharing, and cyberwarfare to disrupt and disable their propaganda and recruiting.”

The big problem here is that Trump’s statement is not very specific; he does not explain how he will do any of the things he outlines. Trump claims that he isn’t being specific because he doesn’t want the enemy to know his plan, but I’m not buying this. I think Trump isn’t being specific because he does not actually have a plan to defeat ISIS, which is understandable since Trump does not have much experience, if any, in developing international policy. His experience is in business, not international politics. Additionally, if Donald Trump actually had a plan, then one would think that he would at least give a little outline or sneak peak of his plan, but he has yet to do this.

Overall, when looking at foreign policy, Trump does not seem to be well suited for the position of President of the United States of America. His foreign policies would not only hurt the US economy, but they also seem to be vague and not well thought out.

Image Source: IB Times

How Illegal Immigration Is Good for the Economy

Many people may be surprised to learn that unauthorized immigration benefits the US economy. In fact, Economist Gordon H. Hanson, has explained that stopping unauthorized immigration may cause a net drain on the US economy. Unauthorized immigration benefits the US economy by providing employers with low wage labor. Low wage labor keeps the costs of producing goods down which leads to lower costs for the consumer. This means that not only are Americans able to purchase goods for lower costs, but so are foreigners. As a result, US exports are higher due to more globally competitive prices. However, if employers didn’t hire unauthorized immigrants, then the cost of production would rise, prices would increase, and exports would decline.

An example of the problems that can arise when rates of unauthorized immigration decrease can be found in the state of Arizona. Many economists agree that Arizona’s economy took a hit after the state cracked down on unauthorized immigration. However, some argue that the benefits that come with reducing unauthorized immigration, such as lower government spending on health care and education for unauthorized immigrants and the employment of more US born labor, outweighs the economic costs that accrue from cracking down on unauthorized immigration. Contrary to popular belief, research shows that this is not true.

The US Department of Agriculture (USDA) conducted a study where researchers performed simulation analysis to determine what the effects would be on the economy if the unauthorized immigrant population decreased or if the unauthorized immigrant population increased. Results showed that an increase in the unauthorized immigrant population would lead to the increased employment of unauthorized immigrants at lower wages which would lead to increases in agricultural outputs and exports. However, a decrease in the immigrant population would lead to several problems in the US economy.

USDA research results show that along with a decrease in unauthorized immigrant labor there would be a labor shortage of farmworkers by 3.4 to 5.5 percent. Long run effects of decreased immigrant labor include an increase in wages for low paying positions and a decline in aggregate income. The reasons for a decrease in aggregate income include a relative decrease in production in the long run and the redistribution of employment from higher income positions to lower income positions. The long run relative decrease in production means that production would not only decrease in the agricultural industry, it would decrease throughout the entire US economy. This would result in the reduction of incomes for higher wage positions.

Overall, the USDA found that decreasing unauthorized immigration by a significant amount would badly affect the US economy. In fact, the benefits that come from decreasing unauthorized immigration would not outweigh the negative effects that decreasing unauthorized immigration would have on the US economy. So if lawmakers want to decrease unauthorized immigration, then they must first come up with a well thought out plan on how to handle the detriments associated with decreased levels unauthorized immigration.