Wednesday, May 12, 2010

SB 1070 Effects

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, they 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 elsewhere.

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.

Data: Arizona 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.

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4 Comments:

Blogger libhom said...

Boycott or no boycott, I'm avoiding AZ like the plague. The state has become one giant Ku Klux Klan rally, and it would be no fun to vacation in a place filled with so many racist sociopaths.

May 12, 2010 at 8:20:00 PM MST  
Anonymous Guzzo said...

You mean those hypocrite politicians in California are only talking a good game about a true boycott? ;-)

May 13, 2010 at 3:50:00 PM MST  
Anonymous Anonymous said...

Hmm, the state I live in is one big Ku Klux Klan rally, and I didn't even realize it. I guess I've been misled by the tons of people around here who rebuke the new law. Surly their criticism is only in anticipation of something much more sinister.

Suns in 6.

May 17, 2010 at 1:55:00 AM MST  
Blogger Eli said...

Seems to me that we should welcome the increased productivity Mexican workers give us. Sure, it is true that in the short term low income American workers have to find new jobs. But once they do, won't the same workers benefit by the increased production their new immigrant neighbors provide?

Yeah, the law may result in the desired effect, but it takes for granted the question, should we desire it?

May 17, 2010 at 2:12:00 AM MST  

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