Who Owns Jobs: The Government or the Employer?
Reuters has reported that the Donald Trump administration’s pick for head of the U.S. Labor Department has admitted to hiring undocumented immigrants in the past. More specifically, he admitted to employing a foreigner who wasn’t legally allowed to work in the United States as a house cleaner.
The pick, who serves as the chief executive officer of CKE Restaurants Inc, made the revelation on Monday, adding that the employment had taken place for a few years. The statement he released also claimed that he and his wife were unaware that the worker wasn’t allowed to seek employment, but that once they were made aware they terminated her, offering her help to obtain legal status.
This piece of news is sure to be explosive, considering the scrutiny the current administration’s picks for cabinet positions have been receiving in the past months. Nevertheless, this story matters for a much more important reason. After all, who owns the job, the government or the employer?
While countries have boundaries by default due to the state’s need to set rules and impose restrictions on everything from migration to commerce, it is important to remember that only the individual employer owns the job he or she is creating.
Regardless of where you stand on immigration, it is up to the job owner to determine whether a particular individual is fit — or not — to perform the duties available in exchange for what the employer is willing to pay. It is also the employee’s right to accept the offer, whether or not the federal government has wage restrictions imposed. After all, if an unskilled mother of five who has just lost her husband is willing to take a job for $9 per hour, what authority does a lawmaker have to tell her she can only find a job that pays $15?
Employers willing to pay that much will undoubtedly hire someone with skills, leaving this poor individual out of the workforce and, what’s worse, in the hands of the welfare state.
When it comes to immigration, racism and security concerns aren’t what’s at stake. Instead, we must understand the basic principle of economics: supply and demand. If there’s a demand for workers willing to take on certain jobs and a supply of workers willing to do them, it will happen. Whether the government allows it or not.
Allowing individual job creators to take on the burden of understanding this risk makes them better employers, which also helps the country, by making sure that only hard workers who keep their promises and follow local rules are getting employed. When government imposes restrictions, workers are forced into the shadows. Putting their lives, the lives of their children, and employers at risk.