The Prof G Pod with Scott Galloway - No Mercy / No Malice: Unserious People

Episode Date: September 28, 2024

As read by George Hahn. https://www.profgalloway.com/unserious-people/ Learn more about your ad choices. Visit podcastchoices.com/adchoices

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This and other information can be found in the Innovation Fund's prospectus at fundrise.com slash innovation. This is a paid advertisement. I'm Scott Galloway, and this is No Mercy, No Malice. Why don't we fix our immigration problem? Easy. It's too profitable. Unserious People, as read by George Hahn.

The best marketers in the world are tobacco companies, tech companies, universities, and the Republican Party. The GOP primarily represents the wealthiest 1% of Americans and corporations, yet manages to get about 47% of the vote, because people will support reducing the top marginal tax rate, hoping they'll someday benefit. The Democratic brand is less powerful, as they're often guilty of being correct and ineffective. Voters prefer mendacious and strong versus well-meaning and weak. Biden is likable, yet under his watch, taxes on corporations went down and women lost their right to bodily autonomy. Note, I realize SCOTUS had something to do with it. Two years ago, the governors of Texas and Florida started sending detained undocumented immigrants

to bastions of the Democratic establishment, including New York City and Martha's Vineyard. Many progressives, including myself, were appalled at the weaponization of vulnerable people. But it was a genius PR move on the part of the GOP. Similarly, in February, Donald Trump commanded his acolytes in Congress to kill a bipartisan foreign aid and immigration bill that would have, among other things, provided funding for border barriers and enforcement personnel, and given the Department of Homeland Security the power to close the border to asylum seekers.

Why? Trump, like most politicians before him, is more interested in politicizing the issue than addressing it. The former president claims that he brought illegal immigration to its lowest level in history. He didn't. That a large share of immigrants are coming to this country from prisons and mental hospitals. No proof of that. And that Democrats have signed illegals up to vote in large numbers in our elections.

Again, false. Then there are the claims regarding Haitian immigrants dining on dogs and cats and Venezuelan gangs taking over Colorado. In Springfield, they're eating the dogs, the people that came in. They're eating the cats. They're eating the pets of the people that came in. They're eating the cats. They're eating the pets of the people that live there. And this is what's happening in our country, and it's a shame. Not happening. But it would make an awesome episode of The Last of Us. I'd like to believe these campfire tales about immigration would hurt Trump,

but they likely help his campaign. The sensational, i.e. bullshit, captures the attention of the media and the algorithms, which square the spotlight on immigration. So Trump is lying, but Harris then needs to explain why after four years of her and Joe Biden, fentanyl is still flowing through our ports and over our borders. And we still have undocumented immigrants crowding into shelters, schools, and emergency rooms in border towns and cities across the country. Arizona Senator Mark Kelly summarized the issue well. The GOP is insincere about immigration, and the Democrats don't understand it. The immigration debate is intellectually dishonest. Again, why? Simply put, the upside of illegal immigration outweighs the downside. Illegal immigration is a good problem. Twenty years ago, I was renovating a house.

I needed to finish the basement, but didn't have the money to build a proper man cave. Just a livable space with some built-ins. But nobody would take the job. The two quotes I managed to secure were more than the down payment on my first home. When I asked to meet with one of the subcontractors, he was a no-show. Finally, my general contractor and I drove to a local 7-Eleven, where several people rushed his truck. The GC asked them some questions in Spanish, and six guys jumped in the back. These men, each one with a different skill, worked around the clock, only taking breaks to make design suggestions.

They weren't just laborers. They were craftsmen. Skilled, hardworking, conscientious, and reasonable. Were they taking American jobs? No, as there were no Americans willing to do these jobs. Take this times 2 million, Pew estimates there are 12 million undocumented workers, and you get the scale of what is likely the most agile, inexpensive, and effective labor force in the world. Construction, hospitality, healthcare, big ag, big chicken, and big beef all rely on this flexible workforce. Once in a while, an industrial chicken packing plant is rated for employing people without papers, but those are mostly for show.

We haven't wanted to fix this problem in any real way as we make a shit ton of money from it. These are the most profitable immigrants in history, and the people who profit from them are all of us. Yes, there are instances of crime, and waves of migrants do tax our social services. But again, every day, we decide it's worth it by doing nothing. The political discussion of the issue has become dominated by myths and misleading tropes. One of the biggest is that crossing the southern border on foot

is how most undocumented immigrants come into the country. Actually, 50% or more of the people here illegally fly into the country with a work visa and then overstay their visa. No border wall is going to be high enough to keep them out. We've made the border synonymous with illegal immigration. It's not. The wall is just a logo, not a serious attempt to fix the problem. Another myth is that undocumented people take jobs from Americans and don't contribute to the economy. conservative economic icon Milton Friedman, a fan of free trade and open borders,

observed that unrestricted Mexican immigration to the U.S. is a net good thing, as long as it stays illegal. Immigration is the secret sauce of the U.S. economy. Estimates vary, but researchers have estimated that all immigrants, legal and undocumented, contribute about $3.3 trillion to the U.S. economy annually. That's as much as 17% of our GDP. These illegals are paying into Social Security, and most of them will never see a dime of it. To be clear, illegal immigration is an issue that warrants a serious response. Friedman in 1977 said U.S. employers and consumers were happy to reap the benefits of an undocumented workforce

as long as the costs—housing, social services, health care, crime—remained low. Now, however, many believe we may be at or past the point where the strain of accommodating these new arrivals has become too high. Ask anybody who lives in Eagle Pass, Texas, or Sweden. Another myth that's often invoked as part of the debate, however, is that undocumented immigrants commit crimes at a higher rate than permanent residents. Whenever an immigrant, here illegally or not, is involved in a serious accident or implicated in a crime, politicians jump all over it. Historically, though,

immigrants have committed crimes and been incarcerated at significantly lower rates than U.S.-born citizens. The economic dynamics behind illegal immigration and our collective lack of will to do anything about it are pretty simple. If, for whatever reason, good or bad, we wanted to put a stop to illegal immigration, it wouldn't be that hard. We could also easily eliminate some of the worst aspects of social media by imposing age gates, if we were serious about that problem. We focus on the supply side of the equation, which is largely a waste of time. Lots of people around the world believe, correctly,

that they and their families will live healthier, happier, and more prosperous lives in the U.S. We can't keep drugs out of our prisons, yet we believe we can seal a 5,500-mile-long border? The fix is on the demand side. If we want to stop illegal immigration, we need to decrease demand by raising the costs and enacting real deterrence. The quickest route to a solution would involve punishing employers. Create a biometric database of documented immigrants, then levy any employer who

knowingly hires somebody who's not on it with a $10,000 fine. No restaurant is going to risk getting hit for $50,000 hiring five cooks or dishwashers without papers. No chicken processing plant is going to risk a $1 million fine for hiring 100. This, of course, will likely not happen. Too many of the people who employ undocumented workers also employ lobbyists and give significant money to politicians. Those politicians are happy to accommodate their backers and exploit the racism and fear of many Americans by continuing to tell

lies about immigration. I believe one of the keys to healthy relationships and relative harmony is to not inject agita, argue, get upset, etc., when the stakes are low. To not create disharmony where there isn't a real problem. Yes, illegal immigration is a real problem, but why let it divide us when neither side seems genuine about fixing it or even having an honest discussion. I believe we will have immigration reform once the perception of the problem appears to eclipse the benefits of our existing hush-hush system. And maybe that time has come. The fix will need to come in the middle of the election cycle.

The issue is too easy for politicians to demagogue when they're campaigning. Again, if we're serious about the issue, why was the legislation presented during an election year? The biggest benefit of illegal immigration has been love. Stay with me here. A 2018 study by the Migration Policy Institute estimates 13% of child care workers are undocumented, and almost a third of home health care workers are immigrants. The New American Economy Research Fund reported in 2020 that approximately 280,000 undocumented immigrants work in the U.S. healthcare system, many in support and caregiving roles. These workers often fill critical gaps in the caregiving workforce, particularly in roles that are challenging to fill owing to low wages, demanding conditions, or the lack of domestic workers willing to take

on these jobs. Their contributions are significant, but their undocumented status can also leave them lacking access to many worker protections and vulnerable to exploitation. A knee-jerk reaction taken from the fascist handbook of demonizing immigrants, like mass deportations, detention camps, would have a devastating effect on the U.S. It would be inflationary and reduce the compassion millions of undocumented workers bestow on our children and the elderly. Punishing immigrants could be the U.S. version of Brexit, a self-inflicted injury. There is a cartoon of an undocumented worker criminalizing his way across the nation, carrying a backpack of fentanyl, stopping to dine on your cocker spaniel. A more accurate depiction is a person

who keeps our costs lower, is vulnerable to exploitation, and cares for your kids and parents when you aren't able. Life is so rich. Thank you.