Back to los estados unidos!

So we're back to the US, after sleet, rain, snow, ice, and flight cancellations tried to keep us away.

It's been pretty hectic, so here's an update on our class presentation: Immigration.

Our presentation had a particular stress added: the reporter wanted to report on it.  Another stress was how controversial the topic really is and how opinionated people can get about it.

The presentation covered the background and history of immigration, leading up to the IRCA, which allowed illegal migrants to apply for permanent legal status in the US in 1986.

Fast forward to the economic implications of Immigration.  There are arguments for and against opening the borders.  Some want to fence and barricade the border, and others want it to be an open freeway between the two countries.

We learned in class that if you increase border enforcement in the US, you increase the low-skilled labor supply in Mexico, leading to lower wages in Mexico and a surplus of supply of labor.

On the other side, demand for foreign labor isn't met because of the decrease in supply, the US faces shortages.  Though unemployment lowers slightly, it is overreacted afterwards by cutting workers because of increased wages - disabling the company from seeking optimum profitability.

Then we debated:

Open the Borders

-          Increases average US wages

-          Allows Taxation and other public services to immigrants

-          Meets the demand for a young low skilled/labor class

-          Raises national income by allowing countries to use fixed factors more productively

-          Reduced prices for consumer goods

-          Reduction in wages caused by illegals is very small

Close the Border

-          Unemployment decreases

-          Mexican GDP increases with an increase in border apprehensions

-          National Security/Gangs related violence

-          Public Services: Costs, etc- Medical

-          Allows for work visas but prevents whole families from coming

-          By increasing the supply of unskilled labor, Mexican immigration in the 1990s has reduced the wages of workers without a high school education by an estimated 5 percent.

Then, it's important to remember distortions (or not ceteris peribus assumptions), such as the current situation in Mexico, with decapitations and increases in violence and drugs, with little more than a peep from the Mexican government.

What are your thoughts on the subject matter?  If it were up to me, we'd be more concerned with investing in education for 0-5 year olds in both countries and less concerned with how big or deep or sharp we can build our fence.