That's What Capital Does
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
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
Posted by Don Boudreaux on
Friday January 26, 2007 at 7:32am