**Illegal Immigration's a Real Problem

"We're creating a new class  where people that are just, whatever... somebody will take care of me.

I'm just saying it's going to f*cking ruin us".

Intro:

In recording for this week’s NFP, Morgan Stanley made reference to an Atlanta Fed report on immigrant workforce participation.1 The immigration topic had been top of mind for some time, and some things needed to be said. The US workforce data masks a much bigger problem with no signs of stopping even if the immigration does.

Here's a clip

• YouTube (subscribe)
• GoldFix (this one too)

Topics Discussed

A Permanent Welfare State

This is the Atlanta Fed's take: Immigrants, generally speaking, don’t enter the workforce for the first two years they’re here. That’s not new. Over time, they usually work their way into the job market as they get used to the country. But this time, things might be different.

We might be looking at the creation of a permanent welfare state. The data being shared suggests that new immigrants won't be working much for the first two years. Instead, they'll be underemployed—that's the term being used. Now, that’s not meant as criticism. It’s just how assimilation works. The real question is whether the current wave of immigrants wants to assimilate. I have my doubts. Take a look at the participation rates in the workforce. The reddish line represents those who've been here for two years or less. Typically, they work fewer hours. That’s just the norm.

Interestingly, during 2020, their work hours actually went up because while others were staying home, they were out working. But now, their hours are dropping again. This trend line is likely to keep falling.

Twisted American Dream

Historically, immigrants came to this country to escape something—be it socialism, fascism, communism, or poverty—and to build a better life. They understood that hard work was the path to something better. My own grandparents, like many others, came here with nothing and worked their way up. That was the American Dream.

But I’m not sure that’s the mindset of many immigrants coming in now. Yes, they’re likely fleeing something worse than what’s here, but there’s a growing expectation that they’ll be taken care of right away. The concept of working hard to achieve the American Dream might not be as clear to them.

This isn’t just anecdotal; it's backed by the behavior and attitudes we’re seeing. Many immigrants are entering the country with a mindset shaped by political promises of support and benefits, rather than a focus on integrating into the workforce. This shift could lead to a culture clash, as the expectation of immediate support clashes with the traditional American value of earning your keep.

Nobody Under 40 is Hired

There’s a disturbing trend. Younger generations, even those born here, seem to be losing the drive to seek out work. I spoke with an executive at a major firm in Philadelphia. He mentioned that they’re not firing people, but they’re also not hiring. What’s striking is that no one under 40 is even applying for jobs anymore. These are white-collar jobs, mind you, not entry-level positions. The younger applicants they do see aren’t qualified, even with degrees.

This points to a broader issue: an educational system that’s not preparing young people for the workforce. The impact is most severe among those under 40, leading to a growing underclass that lacks the skills and motivation to thrive in a competitive job market.

We’re seeing the makings of a Marxist environment—an emerging proletariat class that’s content to be taken care of, rather than striving to succeed. This trend, if it continues, could have devastating consequences for our society.

Politicians Are Missing the Mark

And for those relying on these workforce participation charts, particularly politicians looking to bolster the labor force with new immigrants, I think they’re missing the mark. We do need workers, especially with an aging population. But offering free benefits and expecting them to integrate into the workforce later isn’t a sustainable solution.

Full Podcast here