But here’s the interesting part. If you want to address income inequality, what is one of the best ways to do it? Answer: Limit immigration. That means higher wages for American citizens and lower profits for the top 1% who want cheap labor.
I saw a factoid yesterday that illegal immigration from Mexico is way down lately, presumably in anticipation of the Trump administration being tough. That’s an indicator of rising wages to come. I suppose the top 1% can pass along the higher costs to some extent. But the jobless guy who gets a job won’t be too unhappy that his food is 10% more expensive. He still comes out ahead. And if the employer gets a Trump tax cut, she doesn’t need to pass along as much of the higher wage expense to consumers.This is a point that I have repeatedly made: There isn't much labor in food. Replacing illegals with those legally present will doubtless increase wages because of reduced labor supply, but how much labor goes into your Big Mac? At most a minute or two. A raise in worker pay of $2/hour is thus 6 cents more. Of course, increased wages reduce the number of workers dependent on the government. More expensive Big Macs will likely reduce demand, improving health.