Market Correction

20 April 2006

The Editor, The New York Post

To the Editor:

Let me get this straight. Uncle Sam annually spends hundreds of billions of dollars more than he reaps in taxes. To finance his reckless deficit spending, he must borrow dollars. The Chinese oblige by lending him dollars. Congress and the administration then self-righteously accuse China of financial misconduct ("Bush, Hu Make Little Progress on Trade," April 20). Hmmm....

Uncle Sam is behaving like a drunkard who blames his alcoholism on Jack Daniels.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University

18 April 2006

Editor, The New York Post

To the Editor:

The recent outburst across America of xenophobia is distressing. I have some questions for people swept up in this ugly tribalism:

If immigrants seek to take American jobs, why worry that they will sponge off of American taxpayers?

If immigrants seek to sponge off of American taxpayers, why worry that they will take American jobs? And why does Uncle Sam issue so many regulations aimed at preventing immigrants from working?

And why are you so frightened of freedom?

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University

17 April 2006

The Editor, Christian Science Monitor

To the Editor:

Michael Teitelbaum ("Immigration: the opinion gap," April 17) suggests that pro-immigration sentiment comes mostly from businesses who will gain from a larger supply of workers. Businesses might or might not drive the pro-immigration side of the debate. Either way, an important point goes unmentioned. It is this:

If immigration lowers wages today, the resulting higher returns to capital will attract more investment into the United States tomorrow. Not only will it drive profits back down to normal levels, this new investment also will ensure that worker productivity remains high and that demand for workers remains robust. Contrary to popular misconception, immigration is unlikely to lower wages in the long-run.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University