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California's economy should serve as a wake-up call for the rest of the country, highlighting the negative effects of illegal immigration combined with liberal social welfare programs that discourage people from working.
“Californication” in the United States would worsen illegal immigration, reduce market-driven labor rates, expand the welfare system, significantly raise taxes on employed people, and force the government to impose exorbitant minimum wages. This will encourage them to address declining living standards.
Increased labor force due to illegal immigration lowers wages. The most basic law of economics, supply and demand, states that if supply increases and demand remains the same, prices will fall.
We need water to survive, and water is cheap because it's in abundant supply. Although gold and diamonds are not very necessary for life support, they are expensive because they are in high demand and limited supply. If a new gold mine were discovered tomorrow and the supply of gold quadrupled, the price of gold would fall.
Illegal immigration increases the supply of workers and lowers the price of labor, and hence wages. And while it's true that illegal immigrants are concentrated in certain industries, lower wages affect all industries.
Industries with the highest proportion of illegal immigrants Construction industry, cleaning industry, maintenance, food service, clothing manufacturing, and agricultural occupations. Americans forced out of those industries went to work in other industries, increasing the amount of work required and lowering wages.
I use California as an example of what some people want to do to the entire country. Illegal immigrants include: 9% of the population. Because of the large number of immigrants, market wages for workers were low.
The Democratic bill would address this issue by $16 per hour for all workers and $20 for working people At fast food.
The state also has free unemployment and welfare rules. When market wages fall and unemployment benefits and benefits increase, people lose the incentive to continue working.
In many Democratic-led states, workers can: Earn more with benefits than they can work. And raising the minimum wage to $20 an hour won't solve this problem. Jobs like landscaping and construction used to pay more than $20 an hour.
And while maintenance and administrative services jobs weren't the highest paying, they offered job security and benefits when held on the books by legal workers.
Americans who lose their career jobs to illegal aliens cannot replace their lost income by flipping burgers. Removing illegal immigrants from the workforce would increase natural wages for landscaping, construction, and maintenance, which would encourage people to return to work.
Naturally, as a result of socialist policies in California, highest poverty rate Considering the cost of living, the country has ( complementary poverty measures).
Due to high taxes, high minimum wages, and lack of law enforcement; Steady corporate outflowthe result rising unemployment rate. However, because the minimum wage only applies to legal workers and not illegal workers, many unemployed citizens were replaced by illegal immigrants.
And now taxpayers are paying for it in the form of unemployment benefits and welfare benefits. However, illegal immigrants do not pay taxes. As a result, the tax burden per legal worker is increasing, which discourages people from working. The circle then continues to spiral downwards.
At the national level, Democrats who support illegal immigration argue that the United States' low unemployment rate is evidence that „we need illegal immigrants'' to fill the jobs of illegal immigrants. However, this argument ignores the following: labor participation ratewhich plummeted in 2020 and never returned to pre-pandemic levels.
Labor force participation rate refers to the proportion of the working-age population (usually defined as individuals aged 16 and older) who are employed or actively seeking employment.
Unemployed people are still counted as part of the labor force because they are said to be looking for work. Only those who renounce or receive permanent welfare or welfare benefits are no longer counted.
There are two important points here. The Biden administration will liberalize unemployment benefits and extend the amount and duration of benefits, allowing these people to be counted as part of the workforce.
Despite this, labor force participation rates are declining. This gives him the second point.federal government spent $1.3 trillion Without good social services, more people will remain in the workforce.
In California, the labor force participation rate has been on a steady decline since 1989. the current, Only 62% of legal adults They are part of California's workforce. On the other hand, in California, Highest tax incidence In the country.
Also, 28% of all homeless people The U.S. population has increased by 40% in the past five years. In short, California is enforcing immigration laws and getting tough on crime, resulting in chaos that could not have happened in a free market economy.
According to Pew Research, 87% of Democratic voters agree that illegal immigrants only do jobs. Americans wouldn't do it. This idea is completely wrong. The reality is that there is no job that Americans wouldn't do if they were paid to do so.
Removing illegal immigrants and ending welfare programs would bring wages and labor participation into balance. Taxes could be reduced and minimum wages for unskilled jobs could return to reasonable market rates.
People will be incentivized to work and improve themselves, while jobs flipping burgers will go back to high school and college students.