Wednesday, October 17, 2007

Unintended Consequences

It's interesting to observe that states like Oklahoma and Georgia, that passed laws cracking down on illegal aliens, are noticing a significant drop in tax revenues. Why? Because those people are moving away to other states and taking their tax revenue with them. Another side effect is more houses showing up for sale, also because of illegal aliens moving away. This comes at a rather bad time though because the sub-prime mortgage crisis is already causing distressed houses to come on the market and depress home prices. This is now being aggravated by all the non-distressed homes belonging to illegal aliens that are also coming onto the market.

But in these cases, the system is actually working as the Founders intended. If a state implements foolish laws, people will vote with the feet and that state will get smacked in the pocketbook. It's working.

No comments: