[Simeon_Strangelight]

(04-25-2015 04:18 PM)MidWest Wrote:  

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Also I don't really buy that because of immigration all of a sudden unemployment rises. The biggest illegal immigration wave to the U.S was in 96 and Bill Clinton had a 4.2 unemployment rate. George Bush in his first term had an even lower rate of 3.3 which was the lowest it has been in decades.

That video is correct. Illegal immigrants are just a scapegoat for the country's problems. They need someone to blame it on so they choose the weakest among the weak to pick on.

As for legal immigration that's a whole other thing altogether.

That's a common misunderstanding. Clinton and Bush at first had expansionary monetary and economic climates. If you have real monetary expansion, then you can invite any amount of people into your country - as long as sufficient jobs and credit is being created - no problem.

But since the current model is based on debt in combination with a decrease of real income & decrease of labor participation it was only upheld by increased consumer debt, then the dot-com boom, then the housing boom - essentially the middle class has been financing their increased expenditures just by increased debt. The final straw was the property bubble that will only precede the student debt bubble - but that one will deflate slowly impoverishing the new generation for decades.

So yes - theoretically if you expanded the money supply in a positive way (interest free money, local investments, strong unions etc.), then practically all immigrants would be absorbed by the economy and the US would benefit greatly from their increased consumer spending. All people would be walking down the street with the pockets filled with sestertii.

But alas - it's all similar to Asterix and the Gaul economy - Obelix & Co:




Recommended economice literature - it's quite fitting for most idiotic boom-bust cycles.

While we can still hope that there will be some positive cycles, personally I think that this is the end of the rope. Maybe the Fed will blow some prosperity faking QE out, but most of it will likely be used for stock-buybacks.

In any case - whether my models are right or the libertarian models financed by the billionaires is irrelevant. Won't change a thing.... poverty and mayhem serves them more, since it's not about money any more.