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By PF Wagner  23 February 2007


Part 8


As noted in previous sections, the economic impact of illegal immigration covers a wide stratum, including the collateral impact costs for crime, traffic accidents, education, health care, and the infrastructure.  While the ADDENDUM of this report contains even more economic impacts, this report focuses mainly on the personal carnage being committed by illegal aliens so will only briefly visit some of the economic costs that you might no have thought of or were unaware of the magnitude.

The following section, SUMMARY OF COLLATERAL DAMAGE will put some of the economic costs in tabular form making it easier for the reader to grasp the magnitude of how much saving ten cents on a head of lettuce is actually costing us.

As detailed in Importing Poverty: Immigration and Poverty in the United States: A Book of Charts the bottom line is that illegal immigration brings in a tremendous number of poor, unskilled, and uneducated people along with all their inherent problems. 

As noted in a KGTV report, Illegal Immigration Could Cost Taxpayers Trillions, “The influx of illegal immigrants has effectively "imported about 10 million high school dropouts into the United States," said Robert Rector, a senior research fellow in welfare and family issues for the Washington, D.C.-based think tank.”

While a smaller percentage than most countries, the US has our own resident poor and uneducated to take care of and, as rich as the country is, we simply can not support all the poor and uneducated who want to come here.

One can understand why Mexicans, the largest component of illegal aliens, come to the U.S.  In Mexico, they are typically paid only $5.00 per day for their labor.  When wages for Mexican workers rise, the peso is conveniently devalued to keep Mexico competitive with foreign countries like China and India.  The owners of Mexican businesses often keep their money in dollars in American banks and escape the devaluation of their currency.  Between that and the thoroughly incompetent government, the common people are forever doomed to poverty.  Without a revolution in Mexico, America is their only hope.  Unfortunately, the results of revolutions in countries to our south generally are not good.

At this point it is worth noting that Mexico is not a resource-poor country.  Mile for mile, it has natural resources that are among the richest in the world and it is a net exporter of oil. (about 1.8 million barrels/day) It is, however, a corrupt country which is one of the main reasons why there are so many poor people wanting to flee to the USA for economic opportunities. 

However, just being poor or wanting to come here is not a valid reason to violate the national sovereignty of the United States.  If so, most of the world would be here.  While we already devote considerable resources to our resident poor, the USA does not have the resources for all the world’s poor.

An article in the San Francisco Chronicle stated that Mexicans living in the U.S. send between $6 and $8 billion back to their families every year, making them the third-biggest legitimate force in the Mexican economy, after oil and tourism.  Additionally, US taxpayers pay for all the direct and indirect costs of “housing” the Mexican illegal aliens.  In essence, it’s an unofficial form of foreign aide.  Mexico isn’t about to control its borders, since Mexicans fleeing their country for work in the U.S. send plenty of money back to their own country. 

While the $6-8 billion number is often quoted, a fairly recent story in The Brownsville Herald, Banks seek stake in billions sent home, notes that some estimates place the amount of dollars going south in 2006 will be $45 Billion, which was up from an estimated $30 Billion in 2004. 

Regardless of the amount, all that money is leaving the US economy and not creating additional job opportunities here.  Additionally, all that money represents jobs Americans used to have.

Have you heard about the Social Security Proposed Totalization agreement with Mexico?  Me neither, before starting the investigation for this report.  Somehow it neglected to get reported in our local paper and TV news. 

As reported by Bruce Barton in Totalization Sell-Out: What You Don't Know will Cost You:

“…the Commissioner of the U.S. Social Security Administration (Jo Anne Barnhart) and her Mexican counterpart concluded the U.S.-Mexican Totalization Agreement.  This agreement had to be in place prior to the administration’s second term and its all-out offensive for Social Security reform.  This agreement would allow illegal aliens working in the U.S. to qualify for Social Security benefits with as few as six coverage credits, as opposed to the 40 now required of American workers. 

Additionally, illegal workers could qualify for partial benefits after only 18 months (working illegally and with a false identity), while the American worker would still have to work 10 years in order to vest in the program.  Lastly, families and dependents of illegal workers would be entitled to benefits as dependents and survivors, even if not residing in the U.S.

…The Social Security Administration’s estimate is that only about 50,000 Mexican workers (both legal and illegal) will enter the program in its first year at a cost of $78 million.  This ignores the fact that presently there are an estimated 5 to 6 million undocumented Mexicans now in the American workforce.  In 2004, the SSA did a study and determined that there were up to 800,000 mis-matched social security accounts, many of which were workers using non-work social security cards, or worse, using stolen social security numbers.

Meanwhile, estimates of the SSA are that by 2050 only 300,000 Mexican workers in the U.S. would be in the system at a cost projection of $650 million annually.

Among its negative findings, the GAO summarized its report this way:  “Under the Social Security Act, all earnings from employment in the United States count towards earning social security benefits, regardless of the lawful presence of the worker, his or her citizenship status, or country of residence.  Immigrants [both legal and otherwise] become entitled to benefits from unauthorized work if they can prove that the earnings and related contributions belong to them. However, they cannot collect such benefits unless [or until] they are either legally present in the United States [hence the Administration’s Guest Worker Program], or living in a country where SSA is authorized to pay them their benefits.  [Hence an SSA office in Mexico City] Mexico is such a country.”

This is so outrageous one would think it was an urban legend being spread over the internet.  Unfortunately, this one is true. 

Also see Critics say Social Security deal would give billions to Mexicans by Michelle Mittelstadt of the Houston Chronicle Washington Bureau where she reports “Federal officials insist it would cost only $105 million for the first 5 years.”  Right.  Only if the cost overruns were deducted from their pay and Social Security.  Oops, Congress and dimwitted bureaucrats are never held accountable and Congress exempted themselves and all Federal employees from the Social Security System. 

They both have a MUCH BETTER retirement plan – funded by taxpayers of course. 

To see what the The Senior Citizens League (TSCL) says about it see the WND article, Social Security billions could go to Mexicans, where the League notes:

"It represents a sell-out of American workers and their families," the group's analysis said.  "Such a one-sided pact with its enormous financial risks should never have been negotiated in the first place."

Also see Totalization is a Bad Idea, by Representative Ron Paul of Texas.

If you want to see an actual copy of the Totalization Agreement, forced out of the Government bureaucracy by the TSCL by-the-way, go here.  For some additional news, see: U.S.-Mexico Pact Revealed: Billions to Non-citizens

In the opinion of this writer, such a scheme almost dwarfs the irresponsibility of allowing unfettered illegal immigration.  Where’s the AARP when we really need them?

In any case, a 2004 study from the Center for Immigration Studies, The High Cost of Cheap Labor - Illegal Immigration and the Federal Budget, was one of the first to estimate the impact of illegal immigration on the federal budget.  Based on Census Bureau data, the study estimates that households headed by illegal aliens used $10 billion more in government services than they paid in taxes in 2002.  These figures are only for the federal government; costs at the state and local level are also significant. 

The study also notes that if illegal aliens were given amnesty, the fiscal deficit at the federal level would grow by nearly $29 billion.  Note that number is only for the direct costs and does not count all the indirect costs of the collateral damage being inflicted. 

If the Government says the deficit will grow by $29 billion, you can be confident that the actual amount will end up much greater.  In any case, just the education costs are currently greater than that amount, however the politicians conveniently ignore that most of those costs are borne by the states.  Remember the government is an expert at taking too much money from taxpayers in the first place and then making them feel good about getting a portion of the taxes back in a “refund.”  Hiding the true costs of illegal immigration is a piece of cake.

At this point it is worth noting that Jonathan Weisman of the Washington Post reported in Cost of Senate Immigration Bill Put at $126 Billion:

“The Senate's embattled immigration bill would raise government spending by as much as $126 billion over the next decade, as the government begins paying out federal benefits to millions of new legal workers and cracks down on the border, a new Congressional Budget Office analysis concludes.

Law enforcement measures alone would necessitate the hiring of nearly 31,000 federal workers in the next five years, while the building and maintenance of 870 miles of fencing and vehicle barriers would cost $3.3 billion.  Newly legalized immigrants would claim nearly $50 billion in federal benefits such as the earned income and child tax credits, Medicaid, and Social Security.”

Notice that even when the data is in the same article the MSM can’t figure out that if the government spent $3.3 billion on the fence maybe they wouldn’t have to be spending the other $123 billion.  Why don’t these people get it?

Anyway and amazingly, it seems that few people want to ask WHY we should be paying for illegal aliens to stay in the US.  The “we” means YOU and me, the taxpayer.

Steven Camarota notes in a Judicial Watch Special Report, New Fronts in the Immigration Battle:

“All the research suggests that the reason illegal aliens create large fiscal [deficits] for the country is not their legal status, but rather their educational attainment.  Sixty percent of illegals are thought not to have even a high school education, another twenty percent, a high school education only.  All the research suggests that people with relatively little education make relatively little money in the modern American economy…[As] a consequence, they tend to pay relatively little in taxes, even if they are legal and on the books. 

At the same time, [these individuals] tend to use a fair amount in public services, reflecting their lower incomes.  I estimate illegals pay about $16 billion a year to the Federal Government in taxes…the difference between what they pay in taxes and use in services is about $10 billion.  So right now the net drain on the Federal Government alone from illegal families is about $10 billion.  If we began to legalize [these individuals] and they began to pay taxes and use services like legal immigrants with the same level of education, the net fiscal drain would roughly triple to nearly $30 billion.”

The Federation for American Immigration Reform (FAIR) has a fairly recent article, The Estimated Cost of Illegal Immigration, where the net number is put at $24.4 Billion.  However, as noted, some experts say almost twice that much is being sent out of the country and just the education and traffic accident costs are more than that. 

As this paper has detailed, just the education costs could be as high as $34.5 billion.  That and just $10 billion in services minus the $16 billion in taxes is a net drain is $28.5 billion, not $10 billion.  Add in the collateral damage from crime and traffic accidents, as well as lost wages and the number really soars.

The aforementioned KGTV report, Illegal Immigration Could Cost Taxpayers Trillions, notes: “The National Academy of Sciences estimated that each immigrant will result in a $100,000 net annual cost to taxpayers.”  If that is the case then illegal immigrants are costing the country TRILLIONS of dollars, which is, of course, the point of the KGTV report.

As far as the author of this report has determined after many hours of searching, there is no official calculation of all the direct and indirect costs of illegal aliens.  As referenced in this report, there is a piece here and a piece there but NOBODY IS TRACKING IT.

In any case, when you add up all the direct and indirect costs it would not surprise me if the amount exceeded $100 billion, per year.  If the data for the costs of crime is correct, and the traffic accidents participation turns out to be as great as some indicators point to, then the number could easily exceed $200 billion. 

Using the $200 billion figure and 300,000,000 million people in the US, that would be $667 for every person in the United States.  However only 136,000,000 file taxes, and of those about 44,000,000 pay no taxes leaving about 92,000,000 actual taxpayers.  For them, illegal immigration could be costing each taxpayer about $2,174 each.  In states with high percentages or concentrations of illegal aliens the amount is even higher.

At $2,174, that amount would buy a head of $5.96 per head of lettuce every day of the year.  What could you do with an extra $2,174?  So much for a “victimless crime.”

However, regardless of the economic costs, how can you put a cost on the Americans being molested, raped, killed, and murdered by illegal aliens?

For more information, see:

·   Chilling Cost of Illegal Alien Immigration

·   Welfare Reform and Immigrant Participation in Welfare Programs

·   Fiscal Impacts of Undocumented Aliens

·   Congressman: 'Parasitic' Illegal Aliens Burden U.S. Hospitals

·   Hospitals 'Mugged' by Illegal Aliens

·   The Number and Cost of Immigrants on Medicaid

·   Illegal Aliens: The Health Cost Dimension

·   'Border baby' boom strains S. Texas

·   Hospitals: Aid to offset costs of immigrants is necessary

·   Illegal Immigration Costs California $10.5 Billion Annually

·   Costs of Illegal Immigration to New Yorkers - $4.5 Billion

·   The Costs of Illegal Immigration to Arizonans: Executive Summary

·   Illegal Aliens in Federal, State, and Local Criminal Justice Systems

·   The Earnings of Male Hispanic Immigrants in the United States

·   The High Cost of Cheap Labor - Illegal Immigration and the Federal Budget


This report has attempted to highlight The Dark Side of Illegal Immigration that the MSM is not reporting on and bring to light the massive amount of collateral damage in terms of Americans that are being ripped off, infected, molested, killed, and murdered as a result of our out of control immigration policies. 

This section contains a summary of the collateral damage highlighted in this report along with the estimated annual costs, when known. 

Before we do that, however, let us digress for a moment in the way of remembrance.

On September 11, 2001, a handful of illegal alien, foreign national terrorists with a plan and the will to carry out that plan, killed 2,752 Americans.  The Center for Contemporary Conflict notes in Economic Costs to the United States Stemming From the 9/11 Attacks:

“The September 11 attacks inflicted casualties and material damages on a far greater scale than any other terrorist aggression in recent history.  Lower Manhattan lost approximately 30 percent of its office space and a number of businesses ceased to exist.  Close to 200,000 jobs were destroyed or relocated out of New York City, at least temporarily. 

The destruction of physical assets was estimated in the national accounts to amount to $14 billion for private businesses, $1.5 billion for state and local government enterprises and $0.7 billion for federal enterprises.  Rescue, cleanup and related costs have been estimated to amount to at least $11 billion for a total direct cost of $27.2 billion.”

The report goes on:

·   Insurance. The losses from the terrorist attacks for the insurance industry (including reinsurance) are estimated at between $30 and $58 billion with the main uncertainty concerning liability insurance. …Following the attacks, most primary insurers have increased their premiums and curtailed or dropped altogether coverage for terrorism-related risk. …Overall it is estimated that commercial property and liability insurance rates have been raised by 30 percent on average.

·   Airlines. The United States' airline industry was already in a weak financial position before the attacks with rising debt ratios and falling returns on investment.  Even with cutbacks in service of the order of 20 percent and significant government support, airline passenger traffic has apparently remained below normal, 100,000 layoffs have been announced and employment in October and November fell by 81,000 (almost 8 percent). Equity valuations compared to the overall market illustrate these difficulties. The U.S. airline sector has lost around 20 percent of its relative value since September 10.

·   Tourism and Other Service Industries. Other industries have also been badly affected, such as hotels, tourism, automobile rentals, travel agents, and civilian aircraft manufactures. For example, hotels have reported higher vacancy rates and employment in the sector as a whole fell by 58,000 (about 3 percent) in October and November.  Relative equity values for hotels and leisure facilities are off by around 15 percent.

·   Increases in security and military spending.  …Additional spending of $48 billion was proposed for national defense (an increase of 14 percent from the previous year).  In addition the President asked Congress for an appropriation of $38 billion for homeland security, compared to $20 billion spent in 2001.  

Note that the numbers do not count the cost of the war in Afghanistan and Iraq.  Regardless, considering the number of people carrying out the attack, the number of people killed, and the economic damage inflicted, it was probably the most successful attack in the history of the world. 

The first section of this report, TERRORISM, details that fact our open borders and lack of a REAL ID will facilitate the next attack by illegal alien terrorists.  Next time the costs, human and economic, could be far greater.  Rather than using planes, imagine a nuke being set of in NYC.

The collateral damage from illegal alien terrorism is just one aspect of The Dark Side of Illegal Immigration.  As this report has detailed, there are many other aspects which are occurring right now, today, in your communities and which could affect you and your family.  All of this collateral damage has personal and economic costs.

This report has not even attempted to cover all the damage but has focused on the damage with tragic personal consequences.  A summary of the collateral damage from the dark side of illegal immigration, highlighted in this paper, and the resulting costs, when known, is as follows. 

Note that many of the costs are unknown because NOBODY IS TRACKING IT and some may be future costs that will be imposed on America due to our lax enforcement and mostly non-existent border security of today.

                      DARK SIDE of ILLEGAL IMMIGRATION



45,008 illegal aliens from countries on the U.S. list of state-sponsors of terror or from countries that protected terrorist organizations and their members were released into the general public between 2001 and 2005 despite the fact that DHS couldn’t confirm their identity.  Ultimate costs are unknown.  Remember 9/11?


The Border Patrol arrested 39,215 “other-than-Mexicans,” along the Southwest border.  In 2004, the number jumped to 65,814.  DHS admits they only catch an estimated 1/3 of the border crossers.  Ultimate collateral damage costs of the ones not caught are unknown.


Some sources say that bin Laden purchased several suitcase nukes from the Chechen rebels in 1996.  Allegedly several of these weapons have been forward deployed to the US in preparation for al Qaeda’s next attack on American soil.  Ultimate costs are unknown.


According to two trainers at an anti-terrorism conference, preparations are well underway in Islamic terrorist camps for attacks on American schools that will bring “rivers of blood and staggering body counts.”  Ultimate costs are unknown.


Illegal aliens are enormously involved identity fraud.  Costs are unknown.


Illegal aliens are involved in a plethora of other criminal activities including such crimes involving  methamphetamine,  cocaine,  home invasion,  auto insurance fraud,  life insurance fraud,  food stamp fraud,  mortgage fraud,  auto theft, drug trafficking,  prostitution, and counterfeiting documents.  Costs are unknown.



At the end of 2003, approximately 267,000 illegal aliens were incarcerated in U.S. correctional facilities.


Mac Johnson estimates that illegal aliens murder between 1,806 and 2,510 people in the U.S. annually, an average of 2,158 murders.  (Representative King states illegal aliens are responsible for 4,380 murders)  Cost to society:

$8.4 B

According to FBI Estimates on Number of Arrests in 2005 in the United States and applying a straight 5% of population representation, illegal aliens would have committed 1,172,036 crimes in 2005.  Based on an average of $25,000 per crime, the costs would be $29.3 billion.  There are strong indications that their involvement is much higher.


Based on a GAO report of 55,322 illegal aliens incarcerated in federal, state, and local facilities during 2003 and extrapolating the average number of offenses out across all 267,000 incarcerated illegal alien criminals results in some 1,288,619 crimes!  Based on an average of $25,000 per crime, the costs would be $32.2 billion.  Another estimated 240,000 criminal illegal aliens are not incarcerated.  Note the correlation with the previous yearly estimate.



Professor David Anderson reports that the net annual burdened costs of crime, in 2006 dollars that would be $1.62 TRILLION.  A 5% illegal alien participation would be $81 BILLION.  Some studies indicate the participation of illegal aliens is much higher than representation.


80,000 to 100,000 illegal aliens who have been convicted of serious crimes still walk the streets.  As previously noted, based on studies, those illegal alien criminal will commit 13 offenses each.  Total costs are unknown.


An estimated 2,258,550 pounds of cocaine made it through the southern border with an estimated street value conservatively estimated $72.2 BILLION.  Resulting costs of the associated crime is unknown.  Assume 50% is paid for through crime:


There are currently over 400,000 unaccounted for illegal alien criminals with outstanding deportation orders.  Those are just the ones apprehended.  At least one fourth of these are hard core criminals.  Resulting costs are unknown.


Researcher Deborah Schurman-Kauflin Ph.D. of the Violent Crimes Institute, reports that the illegal alien population includes 240,000 sex offenders – a “conservative estimate.”  Based on studies, they will commit 130,909 sex crimes  annually.  Using $50,000 as the average total economic impact, resulting costs are:



63% of the sexual crimes, 82,473 victims, were committed by previously deported perverts who returned to commit the crime.  Using $50,000 as the average total economic impact, this would be $4.1 BILLION -  more than the cost of a proper border fence along the southern border. .



Operation Predator resulted in 6,085 child predator arrests.  Some pedophile statistics report that each pedophile molests average of 148 children.  If so, that could be as many as 900,580 victims.  Resulting costs are unknown.


Gangs Or Us estimates that MS-13 has over 15,000 members and associates in at least 115 different cliques in 33 states, and these numbers are continually increasing.  .Resulting costs are unknown.


In one report, mostly illegal alien Hispanics were involved in 25% of the fatal traffic accidents, an astounding 5 times as much participation as representation.  In those accidents, 75% of the drivers had no auto insurance, nearly all of the vehicles driven by migrants were registered to other drivers, and 93% of the vehicles had false out-of-state tags.  Resulting costs are unknown.



Illegal aliens are often involved in DWIs at a rate that is 3-6 times greater than their representation in the population.  Resulting costs are unknown.


At a 5% representation, illegal aliens are responsible for 844 alcohol related fatalities.  Data suggests their participation is actually far higher. (Rep.King states that illegal aliens were responsible for 4,745 alcohol related fatalities.  If so, that would 5.6 times as many deaths as representation.)  Resulting costs are unknown.



Based on NHTSA data and a 5% participation rate, illegal are responsible for 309,050 accidents, 2,132 deaths, 139,400 injuries, and a cost of $11.5 billion.  Data suggest their involvement is much higher, maybe 3-5 times higher.


Half of all children born to Hispanic Americans in 2002 were illegitimate, twice the rate for American whites and 42 percent higher than the overall American rate.  Rates are suspected of being even higher for Hispanic illegal aliens.  Resulting costs are unknown.


There are an estimated 5.1 million ESL students in the USA.  If 90% of the ESL students are children of illegal aliens then the education costs for children of illegal aliens is about $34.5 billion per year.


Many illegal aliens are carrying horrific third world diseases.  In the 40 years prior to 2002, there were only 900 total cases of leprosy in the US.  In the following three years there have been 9,000 cases.  TB is epidemic in many illegal alien communities and a new Multiple-Drug-Resistant (MDR) TB is spreading.  Each person infected with TB will infect 10 others.  Treating a single case of MDR TB costs between $250,000 and $1,200,000 per person.  Resulting costs are unknown.



Between March 2000 and March 2005, only 9 percent of the net increase in jobs for adults went to people born in the US but natives accounted for 61 percent of the net increase in the overall size of the 18- to 64-year-old population.  The jobs were taken mostly by illegal aliens, displacing native born Americans.  Resulting costs are unknown.



The National Academy of Science reported that from 1980 to 1995 there was a 44% of the decline in the real wages of high school dropouts as a result of immigration.  This affects Black and Hispanic Americans the greatest and is a great contributor to the high unemployment rate in this segment of the population. Resulting costs are unknown.



Harvard Professor George Borjas has reported that illegal aliens displaced American workers at a cost in excess of $133 billion dollars in 2005. 


The Wall Street investment firm Bear Stearns states we are losing $35 billion a year in income tax collections from jobs that are now off the books. 


National Academy of Sciences study estimated that immigration’s net benefit to the American economy is only $10 billion.  Most of the other benefits of illegal aliens “doing the work that Americans won’t” at lower wages goes into the pockets of their employers.  This item is included to illustrate one of the very few real economic benefits of tolerating illegal aliens. 



A Rice University study calculated that in 2006 the net annual cost of legal and illegal immigration will add up to $108 billion.  Illegal immigration is about half the total.


The population of the USA recently crossed the 300,000,000.  At the present growth rate, it will hit 400 million as early as 2029 and about 500 million in 2050.  And if things don’t change real fast, maybe even a Billion by 2075.  Additional infrastructure costs will be in the TRILLIONS.



Immigration will account for 96 percent of the future increase in the school-age population over the next 50 years.  Cost to the infrastructure is unknown.


A recent report notes that illegals sent and estimated $45 Billion south in 2006, which was up from an estimated $30 Billion in 2004.  That money leaving the economy does not produce secondary jobs here.  Using a 2:1 money multiplier, that is $90 billion removed from the American economy.



A Census Bureau study estimates that households headed by illegal aliens used $10 billion more in government services than they paid in taxes in 2002.  These figures are only for the federal government; costs at the state and local level are also significant.  The study also finds that if illegal aliens were given amnesty, the fiscal deficit at the federal level would grow by nearly $29 billion. 



Jonathan Weisman of the Washington Post states “The Senates embattled immigration bill would raise government spending by as much as $126 billion over the next decade,



While some of the costs summarized above are subsets, e.g. cost of the murders as part of the cost of crime, as you can see the economic costs of tolerating illegal immigration is quite considerable.  The one thing that you can be absolutely sure of is that you are paying for it in terms of higher taxes, insurance premiums, et cetera. 

For much more information on the costs of the collateral damage of illegal immigration in a number of other categories see the ADDENDUM.

Some estimates place the net costs of each illegal alien in the country at $50,000 – $100,000 per illegal alien

If so, then the 15,000,000 illegal aliens are costing us between $750 BILLION and $1.5 TRILLION. 

Even saving a dollar on a head of lettuce, how much lettuce would that buy?

Regardless, what price do you put on each American who has been molested, raped, killed, or murdered by an illegal alien?


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