The Real Economics of Illegal Immigration

Here is yet another reason why pure capitalism is needed to solve America's immigration problem:

An investigation by U.S. immigration officials into illegal unemployment at Chipotle Mexican Grill Inc (CMG.N) is making some investors nervous and could have implications for the fast-food industry as a whole.

The rapidly expanding burrito chain -- famous for keeping a tight grip on labor costs and coming off a two-year stock gain of 350 percent -- far exceeded Wall Street's profit expectations when it reported quarterly results on February 10.

But the shares have since fallen 4.5 percent. A handful of analysts have downgraded Chipotle shares due in part to uncertainty about the liabilities and costs related to immigration audits, which have expanded from about 50 restaurants in Minnesota to Chipotle's 60 restaurants in Virginia and Washington, D.C.

Once again, when the US government gets involved in the economy (as if politicians know how to run a business better than the business' owner), and violates individual rights (an employer's right to hire whomever they please), you end up with a big mess in which no one wins.  Investors, employers, customers and employees are all losing big in this Chipotle mess, and the government is too! 

When Chipotle loses money or when they're completely run out of business, the government won't be able to steal federal, state or local taxes from them anymore.  In addition, job losses at Chipotle will send unemployed citizens to the unemployment lines where they will receive a check for not working and pay fewer taxes.  This will contribute to the national debt, reduce tax receipts that could be used to pay off that debt and reduce the productive output of the nation in general, much less make the lives of many people miserable.

Nothing about what the government is doing to Chipotle is good for America, much less her economy.  Let's stop this senseless battle against workers and employers.  The sooner, the better, for us all!

Comment (1)

Kelly,nice incisive blog on immigration,I wanted to ask you to pay some real attention to the monster of all federal power grabs known as the real id.

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