The California trade is
trying to convince the majority whip in the House Kevin McCarthy to out an
immigration provision into the new immigration bill. This will help to bring
the workers that are working for the California grape and tree fruit communityinto full citizenship. They want this
because they feel that bringing in more workers and making them full citizens
will allow for more productive.
I think that this is a good idea
for the farmers. They can get low skilled labor to come work their land and
will help to increase the MPL for their land. I think that they would do this
because in the long run having more immigrants in the country does not actually
decrease wages. But more than likely will keep them the same, in the long run.
This will also help because they do not need to worry about the legal
impactions and thus their workers will be more productive. Do you think that if
the immigration reform act is past then it will help the labor industry in the
United States?
When low skilled labor goes to work for landlords, the MPL will decrease but not increase, because of diminishing (Marginal) Returns. So wage will decrease in the short run. However, it is beneficial for the landlords, who can pay less salary to employees and save cost. Also, output of fruit will increase, because there will be more resources. Thus, landlords are welcome foreign labor to become full citizens. In the long run, landlords will lose their benefits from MPK, but they can still have a higher productivity. If the immigration reform act is past, I think it will have bad effects on labor industry in the U.S. in the short period which may last for several years. When other workers move into the U.S., competition will become much fiercer and native unemployment rate will go up, which will influence the economy. In addition, when employers hire more workers, productivity will increase and the prices of products will go down. If the products are exported, the prices decrease might worsen the TOT, making the country worse off.
ReplyDeleteAccording to a long run model, wages will not decrease with immigration. However, the sector in which those migrants enter into--in this case grape and treefruit farming--will see a rise in output. On the other hand, other sectors might see a decrease in output. The toal workforce will increase due to the addition of these migrant workers, expanding production in the economy as a whole. Of course too much immigration could eventually lead to unemployment if the workforce became greater than the amount of jobs available. However, if there is a reasonable number of immigrants allowed with this bill, this should not be the case. Overall, I think it would be beneficial for not this sector as well as the economoy as a whole to allow this immigration.
ReplyDeleteThe entering of new labor due to immigration in jobs particularly those need low skilled labor always increase the Marginal Products of that sector, and also give a chance to earn little bit higher than they were earning in their former countries. This sector increase the profit by cheap labor, but sometimes the indigenous may lose jobs due to this in flow of new, and cheap labor of the undocumented(legal) workers this in one way can affect labor sector if they are not legally recognized. Though the theory proves no change in wages of the low skilled workers, On my side I see that, passing the immigration reform act will help the labor industry because, as these illegal immigrants come to work, they accept any terms of jobs assignments which include of super lowering of wages because they have not legal power to stand and claim for their rights, also they are not insured and hence decrease the sensitivity of the employers on the rights of the workers. However, these may sometimes be efficient to works.So, by passing this act, labor industry will be insured, wages will be reasonable and hence creating efficiency in duties done by these legal immigrants.Therefore pass the immigration act for safe and healthy working conditions for both the citizens and the legal immigrants in labor sector.
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