Economics of Invasion

More people added to the population of the country adds nothing to its economy, unless they bring capital. Invaders generally don’t bring capital, they consume it.

Television screens have been filled with images of a large group of people marching across Mexico with the stated intent of seeking asylum in the United States. Many of those people — in fact most of them — state that they will enter the United States by one means or the other. This does, in fact, make them invaders. No other word describes this group of people accurately.

Some people argue that the term invader seems a little harsh for people attempting to get into this country. For that reason, a good working definition would help.

Invaders consist of people who enter another person’s property to take stuff — by force, if necessary.

In addition to objecting to the use of the term invader, some people claim that these people coming to the United States will provide a net economic benefit. I want to question that premise.

Current Economic Drag

It seems that throughout our economy people have the mistaken assumption that increases in population actually add to a healthy economy. More people, in fact, do not strengthen an economy; they weaken it. Only the addition of capital contributes to economic growth and prosperity.

When people move to a new area their presence involves capital consumption. They consume resources that others could use to build businesses. Only when they move to areas that have idle capital do they have any possibility of making a net contribution. The existence of idle capital presumes no workers available in that particular area.

In addition to consuming capital, new residents in a country have a depressing effect on local employment — particularly where minimum wage laws exist. Because minimum wage laws actually reduce the number of low-paying jobs available, these new residents will frequently displace citizen workers.

Myth of Future Contributions

In addition to overestimating the current value of additional residence, people also tend to greatly overestimate the current value of the future contributions of invaders. Even though many migrants to this country have started successful businesses, it takes many years to realize that potential. That future potential has limited value in the present.

Whatever present value future potential may have, it becomes highly diluted by the great majority of unskilled workers who will remain unskilled in the future.

Betting on the probability that large groups of immigrants contain a few individuals with huge future potential makes as much sense as attempting to make a living by buying lottery tickets.

Violent Intervention

No one, including myself, has claimed that these people have any intention of mounting an armed invasion. The means at their disposal consist of using our own violent intervention against us. They will use the resources of the United States the steal the property of American citizens via the violent intervention of our tax system. Our own government confiscates the property of our citizens to pay for the resources used by these people after they cross the border.

Some people claim they have a beneficial effect because they are net tax payers. That assertion is at best subject to question and at worst factually inaccurate. Consider that roughly 50 percent of our own population does not pay income tax. What percentage of these new people will have incomes that require them to pay taxes?

When we include the repatriation of American dollars to the countries that these people left, it becomes even harder to argue that people who cross the border illegally actually make a positive contribution to our economy.


The political and economic plight of the many people attempting to come to the United States does not negate their intent for invasion. They plan — whether knowingly or not — to use the power of the federal government to “steal” the property of American citizens. They do not have the capability, with the resources they bring, to make a positive contribution to the United States economy.

The economic arguments in favor of invaders simply provides weak cover for the political motives of those who encourage them.

One thought on “Economics of Invasion

  1. I appreciate how this article lists the layers of effects caused by this mass migration of “refugees.” Pointing to our own government as the major cause of this situation was a surprise, a wake up for me as a sometimes too complacent citizen. Thank you, James Berger.

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