Guest Worker Quotas ''Disproportionately'' Hurt Small Businesses
DENVER (MMD Newswire) September 20, 2013 -- Small businesses are disproportionately hurt by government imposed quotas on the number of guest workers they can hire according to a new report by the Independent Institute.
"It is clear that small businesses are the big losers if guest worker quotas are imposed under any of the immigration reform bills being debated by Congress," said Helen Krieble, a Colorado businesswoman who is president and founder of the Center for Opportunity, Protection and Fairness. "True border security cannot be achieved without a workable guest worker program that allows small businesses to hire the guest workers they need."
"The Independent Institute has provided an insightful and sobering assessment of how small businesses are hurt by government guest worker quotas that every member of Congress should read," Krieble said.
The Independent Institute, a non-profit, non-partisan educational organization, released a report this week, http://www.independent.org/publications/policy_reports/detail.asp?type=full&id=42, authored by Benjamin Powell and Zachary Gochenour entitled "Broken Borders: Government, Foreign-Born Workers and the U.S. Economy." The report reveals the history of guest workers' positive impact on the economy and how continued government imposed quotas on guest workers hurt small businesses and the overall economy.
"The supply of visas is fixed through political channels and does not adjust dynamically to market conditions," the Independent Institute report says. "If employers want to hire foreign workers after the quota has been filled, their options are to hire illegally or relocate some aspect of their businesses to foreign soil."
"Knowledge of labor market conditions is dispersed throughout the economy and government planners do not know the specific circumstances of time and place that entrepreneurs and workers 'on the spot' know," the report says. "Central planning on economic activity has a dismal track record."
"Immigration restrictions affect small businesses disproportionately compared to large multinational businesses," the report asserts. "Although the current immigration quota system starves both big and small businesses of needed workers, it is the small businesses that are hurt disproportionately. "
"Big businesses are more able to move the jobs to laborers overseas than small businesses are, and they are better at securing favorable treatment from a government which allows them more opportunities for bringing foreign workers to the United States."
"The Independent Institute report clearly shows that our immigration problems are the direct result of the government meddling in the foreign labor market at the expense of American small businesses and the overall economy," Krieble said.
The Center for Opportunity, Protection and Fairness advocates a free market, private sector approach to guest workers, the Red Card Guest Worker Permit proposal, www.redcardpermit.com, under any immigration reform plan.