BF2S Forums Wages - theory

Superior Mind wrote:

HurricaИe wrote:

Wages going into the hands of American people means money going into the economy.

Not if I horde all of my money in a secret cave. But seriously, if one type of worker receives a large pay raise then chances are many others will too, balancing everything out. When minimum wage goes up, eventually other wages, ideally, should go up too.

HurricaИe wrote:

Wages going into the hands of American people means money going into the economy.

HurricaИe wrote:

How's about a politician who isn't scared to fine companies for hiring illegals? Use that money for fixing some of our debt...

Protecus wrote:

HurricaИe wrote:

Wages going into the hands of American people means money going into the economy.

What many immigrants (both legal and illegal) do is get a job, save the money they make, then wire it back to their families in wherever-the-hell-they-come-from-istan.

However, this is especially prevalent with mexican illegal immigrants due to their intense poverty back home as well as their risk of being caught and deported. Better to wire it home to your family than stock pile it here and lose it all if (when??) you get caught.

But either way, this is essentially a siphon pulling money out of our economy. If we could keep the money flow within our own borders and in the hands of our own citizens it certainly wouldn't hurt our economy.

PureFodder wrote:

Protecus wrote:

HurricaИe wrote:

Wages going into the hands of American people means money going into the economy.

What many immigrants (both legal and illegal) do is get a job, save the money they make, then wire it back to their families in wherever-the-hell-they-come-from-istan.

However, this is especially prevalent with mexican illegal immigrants due to their intense poverty back home as well as their risk of being caught and deported. Better to wire it home to your family than stock pile it here and lose it all if (when??) you get caught.

But either way, this is essentially a siphon pulling money out of our economy. If we could keep the money flow within our own borders and in the hands of our own citizens it certainly wouldn't hurt our economy.

Putting sensible restraints on capital being sent between countries would actually be harmful to the US economy. Plenty of cash flowing to the US is from the rich elites of foreign countries such as central America, greatly outweighing poor Mexicans sending half of their paycheque home. If the idea of Capital flight offends you, go bitch at the Reaganites. In one sense it may help with the immigration problem by keeping Mexican money in Mexico, rather than leaking into the US, thusly improving the Mexican situatuion, thusly removing the need for Mexicans to go and work in the US.

zeidmaan wrote:

I did my share of illegal work here in Austria and I can tell you that its almost exclusively shitty jobs for half of what legal workers get for the same job. Also most Austrians wouldnt even work those jobs.
Besides most people that hired me illegally wouldn't be able to run their companies with all legal work force.

One of my good friends uncle has a company that does construction work, mostly renovating apartment buildings. Fairly small with about 40-50 workers. The thing is, to get a contract he needs to compete with bunch of huge construction companies with 2000+ workers. Those big companies already have an edge over him. They have good contacts, lawyers that get all the permits much faster, better architects etc. Only field where he can compete is the price.
And here comes a problem. The big company, that he is competing against, is going to buy the materials straight from the manufacturer and in bulk - lets say 2 million € worth of - and this way it is going to get it much cheaper. My mates uncle will have to buy in small quantities from a retailer and he is going to pay at least 1/3 more than the big company. To compensate for this he needs to save money somewhere else. So what he does is hire half of the workforce legally and these are for example architects, engineers, electritians etc. Other half is illegal and its mostly for more physically demanding jobs. He pays them half as much and he doesnt pay the additional costs like healthcare, pension fond, tax etc.

And even with cutting corners he is barely staying afloat. If someone from the government came today and told him that he must stop hireing illegals ho would shut the company down right away and 20-30 Austrians will be left unemployed.

Government knows this and thats why certain companies in certain fields are allowed (unofficially) to hire illegals.