LABOR DUMPING

The flood of foreign labor pouring into the United States, the European Union and other hospitable environs has brought political strains. But there is little chance of stemming migrant inflows, as long as the countries supplying immigrants embrace policies that effectively mandate labor dumping, says Steve H. Hanke, a professor of applied economics at the Johns Hopkins University and a senior fellow at the Cato Institute.

Mexico is the world’s largest labor dumper and the source of much of the contentious U.S. immigration reform debate. The source of the problem is Mexico’s statist economy, which can’t produce enough jobs. Rather than modernize the economy, Mexico’s politicians sweep the country’s surplus labor force into the United States:

Mexico’s 47 consulates in the United States, more than any other country has, facilitate the sweeping by issuing passports and offering assistance when Mexican immigrants run into trouble.
Thus 30 percent of Mexico’s labor force is working in the United States, and in 2006 they sent home $23 billion — 12 percent of Mexico’s exports.

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LABOR DUMPING
National Center for Policy Analysis