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    mbohan's Avatar
    mbohan Posts: 1, Reputation: 1
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    #1

    Dec 3, 2006, 06:00 PM
    Cheap foreign labor argument
    Why is this argument rejected by most economist?
    shygrneyzs's Avatar
    shygrneyzs Posts: 5,017, Reputation: 936
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    #2

    Dec 3, 2006, 07:57 PM
    Because cheap foreign labor undercuts the labor force already in the US. Instead of paying someone $10.00 an hour, the employer finds someone to work for $5.00 an hour. Cheap foreign labor is generally here illegally, so the employer is not paying into workers compensation, unemployment insurance, health insurance or any other benefit. It also results in a lower standard of living.

    That is what was explained to me by my former econ teacher. Take it for what it is worth.
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