The US Economy Needs People to Grow

I have written about this topic in the past.  Apparently, President Trump is not a regular reader.  Recently, he decided to announce that the United States “is full” and does not need more people.  For a guy who describes himself as smarter and better educated than most people, including his adversaries, he displays a lack of understanding of basic economics.

Two inputs drive the supply side of the economy: capital and labor.  Capital investments are made when companies see an increase in demand and/or an improved return on their investment.  Labor growth can be broken down into population growth and productivity growth.  Our labor force is aging; demographics are not working in our favor as they did throughout much of the twentieth century.  People are having less children.  Plain and simple, if we want economic growth, we need population growth.  Hopefully, that population growth is driven by people that want to come to the US and contribute to our society.  I believe we should prevent people from coming to this country illegallyand we should encourage legal immigration. 

Virtually every business laments the challenges of hiring today.  Academics and the left leaning pundits think raising wages will magically make skilled workers appear.  If they stepped into reality, they would realize there is a general shortage of skilled workers.  The right needs to understand we need to embrace legal immigration and fix our education system in order to grow our workforce and therefore, grow our economy.  It’s not that complicated.  Our politicians like to make it complicated to appeal to their radical constituents.  Stop pandering and focus on what is good for our country. 

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