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Capitalism – The Key To Controlling Illegal Immigration

There may not be too many basic truisms in life but here’s one: capitalism works, socialism doesn’t. Write it down.  It’s the answer to illegal immigration.

The proof of the pudding lies in— historical fact. Remember John Adams’ argument to the jury in the famous 1770 Boston Massacre case, “Facts are things,” i.e., not to be forgotten. Same here.  Socialist-minded Dems shy away from comparisons to capitalism, a comparison which is anathema to them.  Because the greatest example of capitalism working is right here, under their noses, the good ol’ USA.  Socialism destroys initiative, the keystone of capitalism and economic success.  Without initiative, everyone is mired in the same economic morass with the means of producti0n held in the hands of the state/government and no hope of anyone ever getting ahead.  A social and economic dead end.  That’s why socialism is futile, dead and buried, and capitalism, which results in economic empowerment, is alive and well.  These are essential facts, not hyperbole, which must be reckoned with in any consideration of illegal immigration.

Capitalism provides economic wealth and can also provide social wealth.  This means economic empowerment and the ability to fight poverty and terrorism among other things.  Most importantly, it is also the key to solving illegal immigration issues.  But don’t just take my word for it.  Look at a compelling case history, based on an  October 10, 2014 Wall Street Journal article by Hernando De Soto, “The Capitalist Cure For Terrorism.”  While the article’s primary focus explains how capitalism helped to curb terrorism in Peru, using Peru as a model there is no reason why capitalism cannot also be used to control illegal immigration, an issue which is subsumed in any terrorism threat.  It is, accordingly, eminently relevant to the three central American countries, Guatemala, Honduras and El Salvador, which provide the bulk of the mass exodus to the U.S. border.

The essence of De Soto’s article is simply this: capitalism works outside the West, and Latin cultures can and do understand market economics. What’s needed is government leadership (yes, even with capitalism, government can still be useful) to build, streamline and fortify laws and structures that let capitalism flourish. Although I have not visited these countries, I did undertake online research to search for the existence of laws allowing and promoting private enterprise.   This online research did not reveal the existence of any laws in Honduras, Guatemala, or El Salvador, which provide and/or promote the opportunity for private enterprise by local citizenry to enter and operate their own businesses as to exports or otherwise.  In Honduras, from which 80% of the mass exodus flows,  unemployment, poverty, political persecution and resulting violence are the culprits. These issues exist throughout Central America and are undoubtedly the major flaw in the economic infrastructure in these countries.  In other words endemic corruption together with the forces in power acting to keep power away from the people underlie the exodus.

All three countries rely heavily on exports as a source of income and accordingly need people to produce the goods for exportation.  So, if any form of private enterprise exists, why are so many people leaving?  How many would leave their own business if they had one?  The answer to the mass exodus from these countries is clearly twofold: security and opportunity.   Perhaps a lesson can be drawn from De Soto’s experience as to each issue.

Those seeking asylum from violence may find the solution in a mixed-class volunteer army, as was done in Peru.  This approach should provide the best means of combating  any corruption in the police/military.   As De Soto noted in his article, Peru “rapidly fielded a much larger, mixed-class volunteer army – four times the army’s previous size – and won the war [against terror] in short order.”

Together with providing security for the people,  providing opportunity for small businesses to flourish is necessary.  The starting point is capitalism.  A strong volunteer army cannot come into existence absent a free market economy, which in turn needs capitalism to flourish.  The volunteer army should be coupled with an accessible legal framework with which to start and operate businesses.   The root cause of the exodus is clearly failure of the economic infrastructure in these countries –  the inability of individuals to start and operate a business because of economic strangulation from over regulation or repressive laws leading to loss of opportunity.  In Guatemala for example, according to one source, there are 24 tax payments per year. Government mismanagement of the economy persists in El Salvador according to another.  A heavy dose of regulation cutting, ala President Trump’s approach, as applied here in the USA, to eliminate over regulation of business, is vital to economic opportunity.  Better results are possible.

Cutting the regulatory stranglehold on businesses has been a strong component in building today’s extremely strong American economy.  Seeing the countryside in Central America as a breeding ground for a new, modern capitalist economy is an untried approach which should be combined with strong police/military intervention to combat and deter unnecessary violence.  This combination will supply the key answer to the mass exodus from these three Central American countries.  It may appear to be an oversimplification of a difficult situation but since nothing else seems to be working, it’s worth serious consideration.  De Soto put it aptly.  “The trick is to start…Throughout history, capitalism has been created by those who were once poor.”

Arnold G. Regardie



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