The problem with immigration is most definitely not capitalism. Capitalism depends upon the agreement of two or more parties upon a mutually agreeable exchange—whether it be of one’s labor for a wage or of one’s money for a product or service. Businesses seek to lower costs so that they can provide a product or service at the price at which supply and demand reach an equilibrium, which is the point—theoretically—at which their profits are maximized.
The problem with immigration is not that businesses follow this basic principle in seeking cheap immigrant labor, but is instead that the government has inadvertently, because politicians seem immune to understanding the “law of unintended consequences,” set the price of immigrant labor at an artificially low point. Illegal immigrants, are willing to work for less, in part, because they’re taxed less and business owners are all too willing to “exploit” (the anti-capitalist’s favorite word) the immigrant’s willingness to work for less, so this mutually beneficial exchange takes place at the expense of low-skilled American workers.
Of course businesses prefer cheap immigrant labor to more expensive legal labor, but only because cheap immigrant labor already existed in abundance, not because businesses sought a particular class of people to exploit and hold down. What is consistently lost in the politics of this issue is that it’s not about the immigrants themselves; it’s purely about cost. A century ago, it was the Italians and the Irish. By mid-century they’d moved up and out of the low-skilled sector and our economy had itself moved into a more prosperous period that saw high-school boys seeking summer and after-school work building homes and widgets. When it was high-school kids earning only a penny an hour, we called it character-building, but in our increasingly race-conscious and entitlement-driven culture, all of a sudden the businesses that for eons have been paying low-skilled labor as little as they can get away with are vilified as racist tyrants. The reality is, you couldn’t pay low-skilled labor nearly enough to satisfy those whose real problem is not wages or greedy CEOs, but the entire capitalist venture.
The problems with today’s system were created by the government, plain and simple; after all, it’s not the CEOs of companies writing immigration laws; well-meaning but stupid politicians do that just fine all on their own.