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Again, the exception. The overwhelming majority of illegal immigrants work in low skill, low paying jobs and you know it.
Were lower wages driven down? There was a graph posted in here recently that showed wages in real dollars of time and the problem appeared to be stagnation in the lower tiers and increased disparity of the top. I don't think any of the income quintiles had a drop of any significance.
The only way to know that would be to have data about wages without the impact of illegal labor that we do not have. As with all markets we assume that decreased supply results in higher prices.
The only way to know that would be to have data about wages without the impact of illegal labor that we do not have. As with all markets we assume that decreased supply results in higher prices.
The salaries can be way much higher without raising the prices... I work in manufacturing and the labor costs are insignificant... Actually outsourcing something to China or making it in the USA results in a difference of just 5% (and the big companies are so greedy that they care for that 5% and the problems that it brings)
Ever hear of unemployment insurance? legals get it illegals don't
What does this have to do with the ease of getting rid of people? The UI program doesn't prevent employers from laying off, etc at worst an employer with a high turn-over rate would pay a bit higher unemployment "taxes". But the higher amount doesn't add up to much per year, especially after tax.
The salaries can be way much higher without raising the prices... I work in manufacturing and the labor costs are insignificant... Actually outsourcing something to China or making it in the USA results in a difference of just 5% (and the big companies are so greedy that they care for that 5% and the problems that it brings)
Really? So have all manufacturers decided to rig prices then? If this was true a new business could gain massive market share by offering lower prices...
Anyhow, for a competitive industry 5% is often the difference between making money and being in the red....
Really? So have all manufacturers decided to rig prices then? If this was true a new business could gain massive market share by offering lower prices...
Anyhow, for a competitive industry 5% is often the difference between making money and being in the red....
if you're margins are just 5% than that's volunteering not business! I worked (and I still do) for mega-companies with that kind of ridiculous margins... but a serious business should have over 50%.
I've read just today in the economist that with the labor costs rising in Asia and the dollar plunging more and more companies consider US as the place where to manufacture their products.
A company that I'm familiar with (BMW) manufactures all the SUV's in US (one of the reasons is to be close to one of their biggest markets and the other is because the costs are similar or lower than in Germany). The company that I work for has the same strategy and has few factories close to the BMW plant.
Also they have the biggest plant in Romania ... the differences in production costs between Romania and Bavaria, Germany are around 4-5% or smaller. But you have to ask yourself if the problems that come with those 5% (more workers, more bureaucracy, higher risks and so on) worth it?
if you're margins are just 5% than that's volunteering not business!
Really? So a business with gross sales of $10 million with a 5% margin is just volunteering? I guess $500,000 a year is nothing?
Quote:
Originally Posted by MilkDrinker
I worked (and I still do) for mega-companies with that kind of ridiculous margins... but a serious business should have over 50%.
Funny, in this case every business in the US is not serious! All the serious businesses can't get off the ground because the non-serious ones are willing to operate with lower margins...
Competition reduces margins, businesses don't get to pick their margins.
Really? So a business with gross sales of $10 million with a 5% margin is just volunteering? I guess $500,000 a year is nothing?
Funny, in this case every business in the US is not serious! All the serious businesses can't get off the ground because the non-serious ones are willing to operate with lower margins...
Competition reduces margins, businesses don't get to pick their margins.
Some banks offer bigger interest than 5%... without all that hassle.
people could argue about a positive effect of illegal immigration all they want, but the reality is that america is importing poverty through porous borders. you can't expect to import cheap, unskilled, and uneducated labor without it having dire fiscal consequences.
we have all seen the published numbers with the increase in food stamps, WIC, cost of education, health care, etc
what hasn't really been discussed is that we had a stimulus bill which was supposed to generate private sector jobs.
They followed the money, and they found out that with that $787 billion-heading towards a TRILLION dollars -- private sector jobs were lost.
Roughly one million jobs were lost.
this is the result WITH government intervention and over 750 billion dollars stolen. we have had over 14 million people apply for entry in our diversity lottery (probably the dumbest idea any country ever had) and yet here we are LOSING private sector jobs.
Some banks offer bigger interest than 5%... without all that hassle.
Umm....you are confusing return on investment with profit margins. A business with $10 million in gross sales may only have a value of say $2 million. If the profit margins are 5%, that would be a 25% return.
Regardless, what you said earlier was just wrong. The cost savings, despite being small, in outsourcing can have significant effects on the amount of profit a company is able to realize. Manufactures have two primarily costs: raw materials and labor. Saving on either one of them can significantly change the income of the business.
Umm....you are confusing return on investment with profit margins. A business with $10 million in gross sales may only have a value of say $2 million. If the profit margins are 5%, that would be a 25% return.
Regardless, what you said earlier was just wrong. The cost savings, despite being small, in outsourcing can have significant effects on the amount of profit a company is able to realize. Manufactures have two primarily costs: raw materials and labor. Saving on either one of them can significantly change the income of the business.
Usually the labor costs are just 2-3% of the final production cost. But it depends on what kind of products you manufacture...
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