George Will is correct: “America needs immigrants as much as they need liberty’s blessings.” Three slices:
Two dissimilar government agencies have inadvertently combined to clarify the immigration debate. Stomach-turning excesses by Immigration and Customs Enforcement have turned many Americans’ abstract political preference into something uncomfortably concrete. And the Census Bureau has demonstrated that the nation needs immigrants as much as they need the blessings of American liberty.
Given a clear binary choice — for or against deporting immigrants who are here illegally — most Americans favor deportation. However:
One Sunday, a moderately pro-deportation American goes, as usual, for brunch at the neighborhood diner. Jose, who has put waffles in front of this American for 20 years, and who regularly exchanges pleasantries with him about their families, is gone. He has been deported for America’s improvement. Suddenly, the immigration issue has a face, and complexity.
…..
A recent Cato Institute report (“Immigrants’ Recent Effects on Government Budgets: 1994-2023”) says: Immigrants “generated more in taxes than they received in benefits from all levels of government.” They “created a cumulative fiscal surplus of $14.5 trillion in real 2024 US dollars,” including $3.9 trillion in savings on interest that did not need to be paid on debt that was not added.
Immigrants were, on average, more than 12 percent more likely to be employed than the U.S.-born population. Cato: “In 1994, the immigrant share of government expenditures was 18 percent below their share of the population; in 2023, it was 25 percent below.”
…..
As Cato notes, many illegal immigrants who are employed under borrowed or stolen identities have taxes withheld by employers but are ineligible for many government benefits. And they are less likely than others to file returns in order to claim refunds. This is another reason why Cato says:
“Immigrants have created an enormous fiscal surplus for the US government … The $14.5 trillion in savings from immigrants is the equivalent of 33 percent of the total inflation-adjusted combined deficits from 1994 to 2023 without immigrants.”
That fellow having brunch at the diner will still get his waffles. But he will miss Jose, and millions like him, in more ways than he can easily imagine.
Economic coordination does not begin with a giant spreadsheet of given facts. The knowledge that matters is dispersed across millions of individuals. It is local, contextual, and often tacit. A shop owner knows her neighbourhood customers. A machinist senses subtle changes in production. An entrepreneur imagines a product that has never existed before. Much of this knowledge cannot be fully articulated, let alone uploaded into a database.
Most importantly, prices—the signals that guide decisions—are not raw facts about the world waiting to be harvested by an algorithm. Prices emerge from real exchanges based on private property and freedom of contract. When the price of lithium rises, it is because buyers and sellers are competing over scarce resources. The price increase communicates something about relative scarcity, but it also gives people an incentive to adjust in order to conserve, to innovate, to search for substitutes.
Prices are not inputs to the system, but outputs of a dynamic discovery process (see Figure 1). Without the process of exchange and production, without the haggling and bargaining in the market, the knowledge embedded in a price simply doesn’t come into existence. This generative nature of the knowledge of the market is what Hayek was trying to get his peers to see, and why he even resorted to using the word “marvel” in his description of the price system.
Jon Miltimore exposes “antitrust’s dirty secret.” A slice:
In his 1996 book Antitrust and Monopoly: Anatomy of a Policy Failure, economist Dominick Armentano reviewed dozens of the most infamous monopolies in US history. He concluded that virtually all of them were the result of government protection, not an unfettered marketplace. “The general public,” wrote Armentano, “has been deluded into believing that monopoly is a free-market problem, and that the government, through antitrust enforcement, is on the side of the ‘angels.’ The facts are exactly the opposite.”
Looking at the state of antitrust today, it increasingly appears to be rooted more in a hostility to “bigness” than in a principled concern for consumers. This is folly. Size alone is not evidence of economic harm. In many industries, scale is precisely what allows firms to better serve customers.
Mergers and acquisitions don’t always succeed, but when they do, they generate real economic benefits. They enable companies to achieve economies of scale, cut overhead, integrate new technologies, and streamline supply chains. They also foster entrepreneurship and allow stronger firms to rescue struggling ones.
Allysia Finley (“How America’s Oil and Gas Dominance Has Weakened Iran,” Life Science, March 9) is right to celebrate U.S. energy development but misses an important reason we no longer have 1970s-type energy crises.
The main reasons for the shortages in 1973 and 1979 were U.S. government price and quantity controls on the oil market. Natural-gas prices were also government controlled. While it is true that the Arab embargo of 1973-74 and the Iranian revolution in 1979 did reduce market supply, neither caused the shortages nor the palpable sense of crisis. Had there been no U.S. government controls, the prices of oil and oil products would have risen more and more quickly, but there wouldn’t have been shortages. When controls were lifted in the early 1980s, the age of gas and oil shortages ended.
Ms. Finley includes the first Gulf War alongside the Arab embargo and Iranian revolution. But what happened then proves my point. While prices spiked amid the conflict and Americans feared a return of gas lines, the lines didn’t materialize because prices were no longer controlled. We also didn’t experience supply crises in the 2000s or during the Arab Spring.
Of course, Americans are upset by higher prices, but we’ve lived with high gas and oil prices before and we will again. More worrisome is the report that President Trump wants to do something to lower gas prices. The last time the government “did something” we had oil and gas crises lasting a decade.
My advice: leave the oil market alone.
Peter Van Doren looks at the effects of oil shocks.
Christian Britschgi writes insightfully about the bipartisan, economically clueless assault on build-to-rent housing. Two slices:
Oren Cass, chief economist of American Compass and apparently determined to never be on the right side of an issue, argues that a ban on build-to-rent housing can’t reduce housing supply because such a ban does not vaporize land, workers, and materials that could be employed for new home construction.
…..
To take the latter point first, it’s true that policy alone does not physically destroy the things that are used to build new homes. Contra Cass, policy can make market actors a lot less likely to finance the construction of new homes.
Which is what a ban on build-to-rent housing would do.
There are hundreds of thousands of families out there that would like to live in a new single-family home but do not want, or cannot qualify for, a mortgage. The build-to-rent market has popped up to service this niche of home-seekers.
Unable to meet the needs of single-family renters, investors will thus move their capital elsewhere. Perhaps some of that capital goes into for-sale housing or apartment development—likely, much of the capital leaves the housing market altogether.
Ditto Hawaii Democrat Brian Schatz. “We have decided, for no particular reason other than what I think is a drafting error, to demonize people who want to build rental housing for folks,” Mr. Schatz said. Mr. Cruz echoed this objection, noting the bill restricts “new rental housing for Americans by requiring build-to-rent homes to be sold within seven years.”
The Senators are referring to a provision that would ban institutional investors from buying homes to rent, with an unworkable exception for those that are built-to-rent. Investors would be required to sell these homes to individual buyers within seven years of acquiring them. But low- and middle-income folks who rent these homes can’t afford to buy them.
That’s the reason home builders are constructing them to rent. Higher mortgage rates and housing prices have locked many people out of the market. But institutional investment enables hundreds of thousands of families to live in homes, rather than cramped apartments.
Build-to-rent homes make up a growing share of home construction, especially in Sun Belt states like Florida and Texas. The American Enterprise Institute’s Ed Pinto and Tobias Peter note that some 153,628 build-to-rent homes are in the construction pipeline. The bill would effectively bar investors from buying these homes and result in less construction.
Joe Salerno remembers Roger Garrison.
César Báez reports on “how Chile’s free market miracle survived a resurgent left.”


Under natural law, individuals own themselves. From this it follows that an individual has the right to any material goods he produces and to dispose of these goods as he sees fit. But this right is violated when government “redistributes” income. Politicians say that all Americans have a right to food, shelter, and decent medical care. But what they are really saying is that some people have the right to take my money, through government coercion, and give it to others. I would like to know: Under what interpretation of “human rights” do some people have the right to take what another man has produced?
Protection, moreover, has always found an effective ally in those national prejudices and hatreds which are in part the cause and in part the result of the wars that have made the annals of mankind a record of bloodshed and devastation – prejudices and hatreds which have everywhere been the means by which the masses have been induced to use their own power for their own enslavement.
If Constitutional norms are not sufficient to check those in power, the line between a republic and an authoritarian regime gets blurry.
Actually, Americans incessantly “outsource” here at home by, for example, having Iowans grow their corn and dentists take care of their teeth, jobs at which Iowans and dentists excel and the rest of us do not. LeBron James could be an adequate NFL tight end, but why subtract time from being a superb basketball player? The lesson, says [John] Tamny, is that individuals – and nations – should do what they do better than others and let others do other things.
