I am confused about something that seems very basic, and hoping somebody can help me out with this. I have always supported left politics, and I think I understand the basics of supply-and-demand economics. If immigrants come to the US looking for work instead of bringing work, there should be a higher supply of labor, driving the low-end pay-rate down. Given that the low-end rate has gone down significantly througho…
A higher supply of cheaper labour does contribute to the reduced pay but by far the biggest influence is the stagnation of wages over those 3 decades (i.e. it's not that wages have gone down, they just largely haven't gone up). Average, inflation adjusted wage growth has been projected as low as 0.2% year on year in some cases, and this affects most forms of work not just the low end.
Its almost as if they don't want a vibrant middle class to spend, thereby dooming themselves in the long run with stagnation.