Wednesday, June 23, 2010

Retarded Like a Fox

I have given some additional thought to Retarded Politician of the Week, Secretary of Labor Hilda L(ibtard) Solis. While I recogize that her announcement of help to illegal alien workers for "fair pay" is just another chapter of the Obamination's plans to sell out U.S. citizens to any special interest group likely to vote for the Progressive/Marxist Obamagenda, there may be a silver lining to Ms. Solis' promise of help to those who cannot be legally employed in the U.S.

U.S. companies who employ illegal aliens are a major encouragement of the continued flow of illegal aliens into the U.S. These companies try to boost profits by paying lower wages to, and often no payroll taxes on, illegal alien workers. The hiring of illegal aliens displaces American workers. It also depresses wages as Americans are forced to compete in the workplace against the illegal aliens who will work for lower wages and off-the-books wages.

If the Department of Labor forces U.S. companies to give "fair pay" to illegal alien workers and to pay the taxes associated with their employment, U.S. companies may very well abandon illegal alien workers. Besides the potential liability to companies for unpaid payroll taxes, penalties, and interest, laws in many states provide for double or triple damages against an employer for failure to pay earned wages and/or the minimum wage along with attorney fees and costs. With the Department of Labor now showing a willingness to pursue the enforcement of wage laws, U.S. companies have a substantial incentive to comply. This would greatly reduce any benefits to hiring low-wage illegal aliens and make hiring American citizens more attractive.

With a step up in wage law enforcement, jobs for illegal aliens could dry up quite rapidly. With fewer prospects for employment, many illegal aliens would likely leave the U.S., and fewer would come into the country. The law of unintended consequences may strike yet again.

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