Unemployment has been caused by immigration and the loss of manufacturing jobs.

For many years the disparity of income between nations and within nations has forced millions of people to immigrate to the freer more industrialized countries in the search of work and investment opportunities.  The International Organization for Migration’s World Migration Report estimates 214 million migrants in 2010 living abroad and working in the more industrialized countries. In the USA we have naively permitted millions immigrants to join our work force without understanding the consequences. NumbersUSA is a non-profit, non-partisan, public policy organization working to bring legal immigration under control. Their website NumbersUSA.com reports that the fifty million immigrants and their decendents in United States will increase to over two hundred million by the year 2060 if the immigrations laws are not changed.

At the same time we made no effort to protect our manufacturers. The manufacturing companies moved their manufacturing operations from the more industrialized countries to the underdeveloped countries in search for lower wages in order to compete with manufacturers emerging in countries with lower wages. Over 33% of our labor force was in manufacturing. It is now less than 12%. We now import more than we export. The trade deficit in International Goods and Services was thirty-billion in November of 2010.

The combination of these two permissive attitudes about our economy is the primary cause of unemployment. The mismanagement by our government has resulted in our current disastrous condition as the economic success of other countries was given a priority over our economy. The over supply of labor has been building for some time and has driven up the cost of unemployment, health care, welfare and education because the unemployed are unable to pay their share of the taxes and are unable to feed themselves. This has turned into an incredible burden for our governments, both state and federal.

Attempts to belatedly solve the economic crisis by funding more government programs is further evidence that those in power have no understanding what is happening to United States as a result of the lack of protective regulation in the past and how it is now impacting global economies that were given priority.

The combination of these two changes in our economic system also brought to close what has been referred to as the “economic golden era” by the Journal of Economic Literature. During the period from 1924 to 1965 which was a period of low immigration all Americans, including black Americans experienced the greatest increase in real incomes. During the period from 1940 to 1980 for instance black men quadrupled their income. There are now too many workers in United States and other developed countries with too few job opportunities and the buying power of wages has declined. Wages are not keeping pace with inflation.  The percentage of people in our middle income group is much smaller now than when our number of manufacturing jobs was expanding and there were ample job opportunities. This condition is being exacerbated by the reduced global demand for consumer products which are increasing social cost that are straining the national budgets in many nations as a result of increasing unemployment.