The Left Cares, They Really Do

One of the most amazing magic tricks of the last thirty years or so has been the continued propagation, both in the US and internationally, that it is the left that is truly on the side of working class people. A large portion of left wing policies directly harm the middle and working classes, usually at the benefit to some niche group or elite. That is not to say that the right wing is always on the side of the middle/working class. I don’t think they are. But I don’t think the left is either.

Let me explain, using two examples.

First, the Keystone Pipeline.

Read here:

http://money.cnn.com/2012/01/18/news/economy/keystone_pipeline/index.htm?iid=Lead

A long story short, here’s what is happening. In Alberta, the Canucks have recently discovered a huge amount of oil. Over the last ten years, Canada has begun to put in place the infrastructure for extracting this oil, dramatically changing the energy situation for both Canada and the United States. The Canadians want to build an extension of a giant pipeline, bringing much needed oil to US refineries in both Louisiana and throughout the Midwest. Not only could the pipeline bring jobs (though the amount is subject to debate), it could also bring new supplies of gasoline to the Midwest of the US, relieving the current high prices of gasoline.

What happened? The Obama administration put the kibosh on the plan, arguing that it didn’t meet their standard for environmental concerns. The Canadians in response have entered into negotiations with the Chinese to sell their oil, where it will no doubt cause more pollution under China’s comparably lax regulatory standards.

The lower down the income ladder you go, the more energy prices matter. It’s hypocritical to say we want to help the poor and middle class, and then implement policies that drive up their energy costs. How is forcing Americans to pay more for gasoline and heating fuel helping them? Wealth is a dirty business. A nation cannot get rich by having its people work in NGOs and call centers. Dirty, polluting industry is needed and oil is the lifeblood of this industry. It is not a coincidence that the most ardent advocates of the strictest understandings of environmentalism are wealthier people, far removed from industry. It is ethically duplicitous to claim to fight for the poor and then enact policies that will knowingly drive up their day to day living costs.

Second example: immigration.

The left, both in the US and elsewhere, is usually pretty keen on high levels of immigration. Now, let me preface this point by saying two things. First, the right, particularly those in big business, are also very keen on mass immigration since it gives them a large, cheap workforce. Second, I have no problem with controlled, limited immigration or immigration itself. I actually think we need more highly skilled immigrants. Immigrants themselves are usually good, hardworking people and should be treated as human beings with all the rights that fact accords.

The main proponents of mass immigration are usually those that A) claim to fight for the poor and working class and B) are concerned about high levels of income inequality. However, mass immigration, particularly of unskilled workers, harms the well-being of the poor and contributes to inequality. How?

A large scale immigration of unskilled workers, whether it is by Mexicans in the United States or Poles in the UK, leads to two economic effects. First, jobs are taken directly taken from the domestic populace by immigrants who can work at a lower wage and under worse conditions. Second, the expansion of the pool of unskilled workers with no accompanying expansion of demand leads to competition in wages. This competition places a downward pressure on wages, meaning that wages either fall or fail to rise at a fast enough pace relative to inflation and other people’s incomes.

That’s a lot of econ-babble. Let’s use an example. If Danetown has ten people without college degrees and ten available jobs for people without college degrees, each person should find a job. Imagine if a bunch of Danish immigrants, let’s say ten, came to Danetown, all without college degrees. There are now 20 workers all competing for the same ten jobs. How will the employers decide who gets the job? Whoever works for the cheapest! Now, ten people are unemployed, with ten having a job. But even those with a job are still screwed, since they are working at a lower wage then they would have if those dirty Danish immigrants hadn’t arrived! 

Fear not, for some oh so brave politician will come to save the day in Danetown, promising higher wages for all, while simultaneously letting more Danish immigrants in!