Got Money? Arizona is the Place for You!

Illegal immigration is priced into the economy. What that means is that businesses that benefit from immigrant labor are able to provide services at a lower price because their labor cost are not as high. So the current situation in Arizona after the passing of their new immigration law can have serious consequences to the price of services of many industries in that state. To name a few, restaurants, construction, landscaping, all benefit from the work of individuals who come to this country with the only purpose of working and making a living and saving and hopefully go back home with some cash. This new law will prevent these workers from feeling at ease; it will allow for harassment of “suspicious” individuals and will legalize deportation of individuals without the proper paperwork. Overall, it seems like this law will raise the price of everyday life for the people of Arizona and will incur huge expenses in the deportation and prosecution process of these workers. In my view the reason for the passing of this law is obviously not one that makes economic sense or is based on information. It is one that satisfies maybe a feeling of “cleaning up” the state and gentrifying an area that is becoming more and more mixed. Maybe. Maybe the people of Arizona and specifically the ones who backed this bill have enough money to cushion the new hit on prices that the exodus and lack of supply of cheap labor will have on their economy. If so, god bless. But this new slap in the face to the people who keep your economy going and have pretty much allowed for the incredible growth that this state has had is extremely hard to justify.