“Another good way to control this invasion, so to speak, is to penalize American corporations for hiring illegals in the first place. If they want to save money, outsource. I see no problem with outsourcing. As I have mentioned in one of my previous posts, outsourcing has an upside as well. " You cannot outsource certain jobs my friend. Where do you think a majority of illegals are working? They are at the farms in the Midwest or at restaurants and all sorts of small businesses working at the bottom of the food chain. How are you going to outsource those jobs? You can penalize companies for hiring illegals, but then you better damn hope those legal blacks and Hispanics or other minority groups who don't have skills to compete for "better" jobs decide to fill those vacancies. A majority of white Americans sure don't look like they'll do it. The reason why small businesses pop up everywhere and generally succeed for about 5 to7 years (which is the average life span of small businesses anyway) is because they save money by paying people "under the table." If companies have to report the legality of their staff and their taxes to the government, they lose profit; get discouraged to do more business. This has indirect repercussions. Individuals, who own businesses or want to start one, will be discouraged to do so in this type of strict environment. Banks will get hurt as they will lose potential customers who want to take out business loans. This is all hypothetical, but if the small businesses sector does lag behind, The Fed might have to lower short term rates to stimulate growth, but then inflation might pop up at a faster rate. As much as illegal immigrants can be a problem, getting rid of them completely might be a bigger one. Further migration into the country has to be limited and people who come on Tourist visas and other sorts of fundamental pseudo Christian seminars by forging documents should be controlled. Who is to blame for bringing people on Christian seminars hoping to convert them? Americans of course. US embassies in foreign countries have to start playing “Enforcer” here. Some of these folks will cross the port of entry, so you have to monitor them and make sure they don't overstay. Track them down, do whatever. Make that bloody Homeland Security earn their dime. About your outsourcing theory, The US out sources mainly because they save on their bottom lines, plus the work force out east, at certain levels is diligent and bright. Now, how can Indian or Chinese companies outsource jobs into the US? How does that make any sense from the company’s perspective? Yeah they want to penetrate foreign markets to sell their goods and services but to come here for human capital is very ambiguous form a cost leadership stand point. They have to pay American folks in dollars and they will be paying far more than they did back home. China and India are growing, but people are getting a little carried away with this. Indian Stock Markets are a complete bubble, working more out of human expectations rather than market efficiencies, and China still has to clean up their rural, feudal property ownership mess. The US goes to Asia because labor is cheap. Do you think labor is cheap in the US? How can Asian companies pay that type of money working with lower valued currencies (comparative to the dollar) in which they operate? I can see them opening up sales offices here but not outsourcing jobs.