Wednesday, January 26, 2011

Solution to Government Budget Deficits?

It is well known that protection from competition and market forces has allowed public workers to earn far greater wages and benefits than their private sector counterparts. During boom times it's easy to overlook this, but now that cities and states across the nation are facing rising budget deficits, unfunded pension liabilities and soaring taxes, we do not have this luxury. The first step should be to subject government workers to the market forces that determine wages and ensure that they do not exceed an enterprise's or institution's income.

We could take these budget cutting measures a step further and employ a strategy that many private sector employers have used for decades. To keep costs down, avoided cumbersome regulations, many private firms have employed hard working undocumented immigrants. From agricultural production to construction and a host of other industries, undocumented labor has kept the costs of goods and services down, while maximizing the profit of firms.

So, why not use this same strategy to bring down the high cost of government, which is a major factor in the rising deficits and soaring taxes that are plaguing Americans? Why pay a cook county carpenter $87,000 + overtime + health + pension, when undocumented immigrants would do a great job at half the pay? Why pay slothful city bureaucrats over $60,000, when private sector wages are considerably less?

Let's not just only pick on the little guys; Congressman Luis Gutierrez (D - IL) officially earns $174,000 + generous benefits and perks (like a questionable $200,000 loan that he received from a campaign contributor). I am confident that we could get an undocumented worker to do a much better job than Mr. Gutierrez for considerably lower wages and kick-backs. The only question is if Mr. Gutierrez and his compatriots would continue to support liberal immigration policies if they were subject to the increased competition and reduced wages that they engender?

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