I don't usually get snarky, but the current situation with public reaction to
1070 seems to require it.
From an economic standpoint there are two things we need to look at.
First, is the bill having the intended effect. If the intent was to get illegal
immigrants to leave Arizona, then I would suggest that it is working. Since
illegal immigrants are worried about 1070's enforcement,
are leaving Arizona. This is according to the new
Mexican Consul in Phoenix.
Also, if the boycott has a measurable effect, it will be on the hospitality
industry. Along with construction, which is way down in Arizona, the hospitality
industry is where many of the illegal immigrants find work. If the Arizona hospitality
industry suffers a downturn, many of these folks will leave to find employment
Second, are the boycotts for real. Although the LA
city council has voted
to boycott Arizona businesses, I don't see them urging the Lakers to stay home
and forfeit games 3&4 rather than play in Phoenix.
I also wonder what southern
California would do if they quit importing electricity from Arizona. California
imported 97 billion kilowatt hours in 2008. About a third came from Arizona.
Shut off the power from Arizona and you get rolling blackouts
across southern California this summer. Good luck with that.
net exports 36.9 billion kilowatt hours (page 21). California net imports 97
billion kilowatt hours (page 33). Nevada net imports of 1.2 (page
177). New Mexico net exports of 13 (page 195). Utah net exports of 15 (page
273). Since we aren't sending power to any of our other neighbors, it has got
to be going to California.
Labels: macroeconomics, microeconomics