Amnesty Driven by Voodoo Economics


Voices calling for amnesty do not really understand economics or free enterprise. They offer garbled misconceptions — with graphs. But they would be kicked out of the economics courses I took in business school. The pro-amnesty camp argues from “voodoo economics.”

Amnesty will grow the economy, they argue. Well, if there are more people, technically the economy will be bigger. But each person may be poorer. A growing economy is only ‘better’ if the economy grows faster than the population increases. Otherwise, each individual is worse off among a larger crowd.

Gross Domestic Product (GDP) measures total activity — not household income for each individual family. Amnesty will create a worse economy for everyone, even if total GDP is larger. (Actually, amnesty just transfers workers from Mexico to the U.S.A., so there isn’t really any growth in GDP, just a transfer.)