I said immigration may not cost jobs.
And you responded with poverty is bad.
If that was a response to what I said, I don't see how.
And you responded with poverty is bad.
If that was a response to what I said, I don't see how.
You might be asking how could replacing a $25 worker with a $2 worker -- foreign, domestic, etc doesn't matter -- have no economic impact on jobs and wages?
So one might argue the following: The company paying the $25 to the first worker, now has $23 in profit/savings. What happens to that money?
They might reinvest it, they might pay it out as dividends, or they might use it for an acquisition, or they might reduce the cost of the good sold (passing it to the consumer). And so on.
Whatever they choose to do will end up creating more jobs and boosting wages in something else.
Now, you might say -- and I won't disagree -- that if they pay them out as dividends then the kinds of jobs they will produce is ship building for yachts, and massages for rich people and perhaps you don't agree with that kind of redistribution.
That may be, but purely from an economic perspective the net impact of jobs and wages has not been significant.
I suppose you mean "from a global financial economic perspective". And you are right, of course: income equals expenditure.
From a economic local perspective, you have now a worker that before won 25$ and now doesn't. He is pissed off, and it's going to vote somebody that looks angry too.
You have 23$ in profit that will go (with a short stop in Ireland first) to buy an empty condo-mine in London or will be invested in places with 2$ waves in order to repeat the operation.
But, yes, the USA commercial deficit is totally the fault of the Chinese.
Most of that money is likely to be re-invested or spent in the United States.
You make a whole host of claims in your 4th sentence about the London condo mines etc. which I don't understand.
Just to be clear: the price of commodities don't get magically untaxed by Ireland. The transfer pricing only applies in cases where the value-add is not objective such as IP.
If the $23 were re-invested it would increase jobs and increase wages too.
not if they stash it in an offshore tax-haven in the Cayman Islands.
The dollars that go to china get either spent or reinvested here. And Chinese purchases of iPhones has exploded over the last few years.