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If the United States decided to reduce immigration substantially, the economic losses would likely be small relative to the overall economy. If the United States decided to increase immigration substantially, the U.S. economy certainly is large enough to afford some additional assistance to low-wage workers or to local governments that might be adversely affected by immigration. Whether immigration levels are increased, decreased, or left the same, the quality of the debate over immigration policy would be improved by an explicit recognition of who receives economic benefits from immigration and who bears its costs.
Should we end collective bargaining rights for government employees? In an effort to reduce the budget deficit, a contentious Wisconsin law prohibited most public employees from collectively bargaining on anything except wages. Legislators in Wisconsin argued that public safety is so important that public safety workers should be exempted from this. They could not risk firefighters and police going on strike. All firms and employees know that pensions and benefits are expensive; and there was a $3.6 billion budget deficit in Wisconsin that Governor Walker and legislators wanted to decrease. A lingering question is: should the unions have been more willing to shoulder a greater burden of the cost of those benefits? That question suggests that it is the cost, not necessarily the role of the union itself, which is the problem. After all, unions were founded to reduce the disadvantage that single employees face when bargaining with employers. Because so many government employees are union members, collective bargaining is even more important for them.
Ultimately, the benefit of unions is in the impact they have on economic productivity and output. The more productive the union workers become as a result of collective bargaining, the better off the economy will be.
The long-term repercussions of the Wisconsin law have yet to be realized. As a result of this bill, wage increases higher than the rate of inflation for Wisconsin public sector employees must be voted upon. Imagine if you are working for the Wisconsin government, and are able to find a higher-paying job in the private sector. What will you do? If you decide to leave because your options are better elsewhere, then the government must replace you. How will the government find workers to replace you? For some sectors of the government, reduced numbers of workers may mean greater efficiency. For other sectors, though, reduced numbers of government workers may mean reduced services.
The recent level of U.S. immigration is at a historically high level if measured in absolute numbers, but not if measured as a share of population. The overall gains to the U.S. economy from immigration are real but relatively small. However, immigration also causes effects like slightly lower wages for low-skill workers and budget problems for certain state and local governments.
Clune, Michael S. “The Fiscal Impacts of Immigrants: A California Case Study.” In The Immigration Debate: Studies on the Economic, Demographic, and Fiscal Effects of Immigration , edited by James P. Smith and Barry Edmonston. Washington, DC: National Academy Press, 1998, 120–182. http://www.nap.edu/openbook.php?record_id=5985&page=120.
Smith, James P. “Immigration Reform.” Rand Corporation: Rand Review . http://www.rand.org/pubs/periodicals/rand-review/issues/2012/fall/leadership/immigration-reform.html.
U.S. Department of Homeland Security: Office of Immigration Statistics. “2011 Yearbook of Immigration Statistics.” September 2012. http://www.dhs.gov/sites/default/files/publications/immigration-statistics/yearbook/2011/ois_yb_2011.pdf.
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