Possible Black Swan of the Stimulus Package

So the stimulus money has not really started finding its way to these so called shovels ready projects, but yet in just a few short weeks everything doesn’t seem so dire (at least in the immediate future, long term we are still SOL due to this high deficit that the president and congress has decided to go with).

I believe some of the unintended consequence of these big projects will be as follows:

As you heard time and time again (illegal labor does jobs that Americans don’t want to do). For the longest time those jobs that American didn’t want to do was supposed to include construction jobs. The picture is starting to form isn’t? What do we know about the border right now? Remittances are down; border crossings are down, and some people have started returning back to Mexico. This is not due to some new security policy enacted by the Border Patrol and Homeland Security, a very large part of it is due to the fact that the construction business here in the US has taken a nose dive. The source of income for many illegal persons has dried up.

So eventually when these projects take off, what do you think is going to happen? You will have private companies bidding for government contracts / at the least channeling campaign contribution monies and bribes, and they are going to be looking to make a profit. Do you think they are going to be hiring people with a college education or people with a little salt and pepper in their hair for $40k a year? The will operate just like any other business, they will find the lowest cost source of labor they can get their hands on. This won’t change the unemployment rate one red cent, because these people will be off the radar so to speak.

The other side effect, community and gov resources will get overrun again buy large influxes of people who don’t have insurance, and aren’t paying property taxes because they are renting. A good portion of the money earned will not be spent here in the USA; it will go back to Mexico. 

And the cycle beings again when you here the gov say “We need more $$$ for health care and education”. We are becoming a welfare state (as a union). Look at California, how could the once most prosperous state in the nation, now have the highest bu