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I think it's more complex than just an addiction to cheap labor. Cheap immigrant labor has lowered barriers to entrants into small business. Any yahoo with a pick-up can pick up laborers to help pour a foundation, or get a cleaning contract, or open a dry cleaners. It "increases competition," sure, but the small businessman gains disproportionately through cheap labor.
The problem is that with outsourcing and the "global economy," we can't compete because the market is suddenly much larger. We didn't have a China or India to worry about 15-20 years ago. Even the government has started shifting its emphasis towards small business ownership as the tool that creates a middle class.
Let's face it - in a decade or less, it will be impossible for a wage earner to be "middle class." You will have to own your own business, unless you are in the upper echelons of complex corporate jobs or the equivalent.
It's a pretty grim outlook from my view - tons of consumer debt, paying for the cheapest of goods, increasing the demands for cheap labor, leading to more outsourcing.
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