Friday, June 08, 2007

Immigration Bill Failed


You know, I just can't help but wonder how short sighted our congress is. They just shot down the latest immigration naturalization bill that would allow the current estimated 12 million illegal immigrants an easy path to citizenship. (I actually don't like the "Z Visa" concept which is basically just a glorified work permit, we should give them an easy path to citizenship like our forefathers were given, but you've got to start somewhere.) I know that by posting about immigration I am hereby declaring to the world that I do not march in step with most Republicans on this matter. I don't care.


Here's how economics works. If you run a business that takes raw materials and makes them into a useable goods you must make those improvements for the least amount of money possible. If you don't, you will have your product copied by someone that can and they will. Their substitute product will replace yours and you loose. Now, this process isn't instantaneous but it is pretty quick in our globalized world.


So what do we do in the United States? We discourage immigrants from entering the country by making the naturalization process so difficult that they don't feel as though they can work within the system. So what do they do? They sneak in. The cheap labor comes, but the government doesn't get the increased tax base.


It's not about whether or not its legal. Its about whether or not its possible. And to these immigrant getting in is easy. Getting legal is hard.


Lets build a wall! How stupid are we? If we build walls to keep them out all we are accomplishing is to isolate ourselves. If they want in they will come in. But their government sees our attitude and translates it, "The US thinks they're better than us." We become socially isolated.


In the meanwhile. Our competative advantage in the United States is ebbing. Eventually, China is going to catch up and nothing will be made in the USA because it can all be made in China for cheaper cost and just as good value.


What's more is it is argued that with immigration comes crime. Yeah, but let's look at where that crime is really coming from. Having lived in the Southwest for most of my life, every immigrant that I have met has worked harder for his daily bread than any of his American counterparts. They don't come here to steal and loaf. They come here to work and get ahead.


One last point. The current population trend in the US is to less and less children. This is normal for educated populations. However, if we don't increase our population somehow, how do we expect to be able to grow our economy? Stock market investments?


Continued immigration will save this country's production capabilities. Its time that the nation stopped resenting the culture clash and encouraged immigration as what it is: a replacement working base for a sagging and aging American economy.

Monday, June 04, 2007

My opinion on Cap and Trade systems.

I started summer school last week. No, I don't ride the short bus. I am taking Social Responsibility and Business Ethics. So of course we are going to be talking a lot about people being unethical. I'm really going to enjoy this class because it will require us to share our opinions on a lot of things.

And if there is one thing I am not short on its opinions.

Then, my position as an environmental compliance specialist at a copper mine also lends me a very unique perspective.

One question that came up in class the other day that I didn't comment on because the conversation turned too rapidly away from it was the proposed CO2 cap and trade system. The question was asked: Is it ethical to trade pollution credits?

The simple answer is that it is unethical not to. If a production facility is told to simply cap their emissions they will do so precisely at the legal limit because there is no economic incentive to do otherwise. Where, if the same facility is rewarded for reducing their emissions below the required limit by being allowed to sale the excess pollution to less clean facilities, they will do so.

The great part is that the "dirty" facility that is purchasing the excess credit will still be limited by pollutant limits because there is a financial disincentive to purchase credits.How cap and trade really excels is in the second round of emission reductions.

Then, say five years into the program, the government reduces emission limits even further than the initial round and the most innovative polluters have prepared by installing even better control technologies.

Also, if an environmental NGO wants to be forward thinking, they can purchase the excess credits thereby directly reducing pollution. It would be unethical to use any other system because no other system works as smoothly or efficiently to reduce pollution