Category Archives: Economics

The Need for Workforce Growth

The Need for Workforce Growth

The U.S. economy loses billions of dollars a year due to the sharp decline in refugee admissions, economist says https://www.marketwatch.com/story/u-s-economy-loses-billions-of-dollars-a-year-due-to-the-sharp-decline-in-refugee-admissions-economists-says-11663698920#:~:text=%E2%80%9CThe%20sharp%20reduction%20in%20U.S.,Florida%20Gov

Our government estimates that there are about 11 million undocumented persons currently living in our country. Many of these people have been living here for generations. Despite what many think, most of these people did not come across our borders illegally. Two of the most preferred methods are to enter on a tourist visa and to come across on a temporary work visa. The way our system works is that it is very difficult to track down persons who overstay their visas if they do not want to be found. To complicate the issue of the shortage of workers willing to work for low wages it is easy for these immigrants to gain employment. Many enterprises knowingly hire illegals and I do not blame them as there is a demand for lower-wage employment that cannot be satisfied through traditional methods. What would our workforce shortage be like if we did not have these workers?

U.S. economy loses billions of dollars a year due to the sharp decline in refugee admissions, economist says

Last Updated: Sept. 22, 2022 at 1:10 p.m. ETFirst Published: Sept. 20, 2022 at 2:35 p.m. ET  BY Zoe Han

For each missing refugee, it costs the ongoing GDP $30,962 per year, according to an Oxford Review of Economic Policy paper

Although the past refugee exclusion policy carries complex implications, it has ‘permanent, ongoing, annual costs’ to the economy, according to new research.

 The decline of refugees arriving in the U.S. costs the overall economy over $9.1 billion a year, according to a peer-reviewed paper published in the Oxford Review of Economic Policy. 

“The sharp reduction in U.S. refugee admissions starting in 2017 costs the overall U.S. economy today over $9.1 billion per year,” the paper concluded. It also cost public coffers “at all levels of government” over $2 billion per year, it added.

“Beyond claiming a need for protection, refugees and asylum seekers are economic actors. All are consumers, most are (or become) workers and many are (or become) investors,” the author Michael Clemens, director of migration, displacement, and humanitarian policy at the Center for Global Development, wrote.

The paper studied the impact of the more restrictive refugee admission policies from 2017 to 2020. The exclusion policy has blocked approximately 73% of the refugees that would have arrived in 2018, Clemens estimated.

The drop in international migrants costs the economy $30,962 per missing refugee per year on average, and costs the government $6,844 per year per missing refugee, the study found. 

The report comes at a time of heightened tensions around refugees and migrants. Florida Gov. Ron DeSantis, a Republican, sent two flights of Venezuelan migrants to Martha’s Vineyard from San Antonio, Texas last week. A Texas sheriff opened an investigation on Monday into the legality of the flights.

The amount of admitted refugees to the U.S. fell to 30,000 in 2019 from 84,994 in 2016.  This has adverse economic consequences for the country, economist Michael Clemens said.

Julio Henriquez, an attorney who met with several migrants, said they “had no idea of where they were going or where they were,” the Associated Press reported.

The amount of admitted refugees in the U.S. fell to 30,000 in 2019 from 84,994 in 2016, according to Migration Policy Institute data

“In short, the implications of prior, recent refugee-exclusion policy in the United States are complex,” Clemens wrote on Twitter TWTR. “Many are non-economic, obviously. But they include a large, ongoing, permanent economic cost to the average American.”

The problem stems from two facts: 1. Our aging population 2. Our negative “internal” population growth rate. We need to either document the current illegal workforce or deport them. This will allow them to pay taxes. We need to streamline the legal immigration process and make it easier, quicker, and more affordable.

Workers just earn $.12 more now than in 1972

Workers just earn $.12 more now than in 1972

An article by Jing Pan

March 2, 2023·5 min read

Persistent inflation is still making headline this year. But price levels have long been rising in this country — eroding the real wage of working Americans.

According to CNBC, American workers were earning an average of $27.45 per hour in June of 2022. Back in 1972, the same workers made an average of $3.88 an hour.

That’s serious wage growth right?

Not so fast. Those numbers are nominal wages that haven’t taken into account inflation.

When adjusted for inflation, American workers are earning just 12 cents more today than they did in 1972.

In other words, real wages — wages in terms of the number of goods and services that can be bought — have essentially been stagnant for 50 years.

“When the average American is not seeing his or her living standards increase over a period of decades, that’s something that should concern us all,” Harry Holzer, professor of public policy at Georgetown University, told CNBC last year

Fast forward to December of 2022, the average hourly earnings went up slightly to $28.07, according to the latest Bureau of Labor Statistics data. And while the inflation rate has decreased to 6.5% from 7.1% in November, it is still much higher than the Fed’s target rate of approximately 2%.

My input: During that same time frame inflation adjusted GDP more than tripled. My question is who benefited from the increased economic growth?

Wind power in Illinois

Wind power in Illinois

I was driving home from Chicago and left early and it was dark for a couple of hours. Traveling down I 55 I noticed quite a few wind generators with red flashing lights. There seemed to be hundreds. The red lights were flashing in unison every two seconds. When I got home I decided to do a bit of research and learned that there are over 3,000 wind generators in Illinois.

Wind power in Illinois provided nearly 10% of the state’s generated electrical power in 2020 powering 1,231,900 homes. At the end of 2020, Illinois had 6,300 megawatts of wind power installed.

I also learned that the cost of producing electricity (including maintenance, capital cost and land leases) is just over 3 cents per KWH. Check your bill and see what you are paying.