Business contends with illegal 'aliens,' immigrants in a Ghost Town?


Having addressed some controversial issues like eBay and the real estate market through a series of posts, one of BloggingStocks most avid (and astute) readers asked me to tackle another tough issue -- Immigration reform.

He directed me to the following September 15 2006 article, "Immigration Raid Makes a Ghost Town." The story points out :

"Last month, the federal government reported that Georgia had the fastest-growing illegal immigrant population in the country. The number more than doubled from an estimated 220,000 in 2000 to 470,000 last year. This year, state lawmakers passed some of the nation's toughest measures targeting illegal immigrants, and Republican Gov. Sonny Perdue last week vowed a statewide crackdown on document fraud."

The article is clearly slanted toward the plight of the people that were hauled away, creating the "ghost town," and is slanted against the government. In this case I may have been swayed by similar feelings, as was our reader. However, I am not one to appreciate the political polarization we create among ourselves and I do not feel this article is balanced in its reporting.

Even in the paragraph I have quoted I would not mention the political affiliation of the Governor. Some might say it is normal to do so, but I say it adds nothing to the story and only fuels the wrong fire. This story will take volumes and I do not know how much energy I have to cover it, but if you do not have your own soap box, I am more than happy to share mine. Perhaps we can thrash out what this all means.

One of the first things that I noted in the article was the use of the term illegal "immigrants" as opposed to illegal "aliens," which by itself is an indication of where one's sympathies may lie.

Perhaps it is simply political correctness. Perhaps it is my own bias, but it does connote changing times. We often come across the term "undocumented" instead of illegal, indicating clearly the desire for an even more benign term. A great discussion of this can be found at wikipedia where many of these terms are defined in great depth.

If I had written the referenced story I would have briefly touched upon a few related issues like; current low employment levels hovering around 5% for many years now, minimum wage rates in Georgia at the ridiculously low Federal rate of $5.15, and why this is such a big issue at this time. Are we really discussing it because of our fear of terrorism and our porous boarders or is it election year hyperbola. Do we feel over run with poor people trying to make a living taking jobs few others will take, or is it the often raised issue of the burden on government services. Some facts about Georgia can be found at http://www.dol.state.ga.us/ indicate the the following:

Georgia Department of Labor

Statistics
Georgia Unemployment Rate: 4.6%
National Unemployment Rate: 4.6%
UI Initial Claims: 33,852
Minimum Wage: $5.15

How does this relate to our BloggingStocks companies?

Naturally Wal-Mart Stores, Inc. (NYSE:WMT) is mentioned in the ghost town story since low wages are at issue. General Electric Company (NYSE:GE) has so many employees that perhaps it is inevitable that some are here illegally (and are undocumented) in some plant somewhere. But most of what GE does requires high levels of skill.

Apple Computer, Inc. (NASDAQ:AAPL), eBay Inc. (NASDAQ:EBAY), Google Inc.(NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Yahoo! Inc. (NASDAQ:YHOO) : I can't imagine how it affects them given the high levels of education and training that the average employee has. Perhaps one could argue there is an added burden on the health care system by illegal immigrants that raises the health care premiums of these companies, but I would not make that argument.

Maybe some of them are affected at their warehouses or distribution centers? I do not know. My own thought is that with the exception of Wal-Mart, the BloggingStocks companies are not having to deal with this issue at any appreciable scale.

Now what?

Should we continue to hold employers more accountable? The government seems to be very inconsistent in its treatment of the problem and the people. We are about to create the most massive barrier and surveillance system of all time on our southern border, will it work? Will more people be shot crossing or just recorded for some possible future court appearance. Does this have any impact on reducing the risk of terrorism? There may be a premium we all pay in higher health care costs for the presence of illegal aliens/immigrants, but is it offset by lower labor and, in particular, food costs?

Like I stated earlier, no small task to cover this topic -- I hope my energy holds up! These are important issues. Let me know what you think.

Disclosure: I own shares of TWX and do not own shares of any other company mentioned in this story.

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Sheldon Liber is the CEO of a small private investment company and the vice president for Design and Research of an Architecture & Planning firm.

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Last updated: February 13, 2012: 03:34 AM

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