I'll address your second point first. You claim:
Although that's a great theory, it goes against my intuition.
Most interesting theory explains why our world works in a counter-intuitively
Considering that most illegal immigrants are poor Latin American laborers with no appreciable wealth, little education,
Doesn't mean that they can't create more than they consume; You see, by providing services on the bottom of the pyramid they allow those above them with greater education and wealth to create more for everyone else.
and practically no chance of earning a wage high enough to generate discretionary income, I simply don't see much in the way of entrepreneurial opportunity from this group of people.
This comes two fold:
1.) The number of people who would otherwise be employed in this manner, consuming even greater resources, is reduced; this allows the more educated, now freed form the lower-end labor, to be exploited by entrepreneurs who have use for that higher level of education
2.) The long-term is an ever increasing level of affluence and intellect. Over the long-haul those who come here will have children that will go to school, and they children that will go to school; eventually the illegal migrant will create offspring here, that would not otherwise be here, that are better than the next person down the line when it comes to everything from medicine to technology
Having the best people, which means having a higher population, is a good thing.
You could argue that illegal immigration provides an economic benefit to employers because they can pay illegal immigrants lower wages than legal workers, but that economic benefit is eliminated due to the fact that these displaced legal workers are no longer providing economic value but still have expenses, which more often than not are paid by the public.
actually, with "more often than not" is false. The truth is that the about 15% of those who lose their job to a lower-paid worker have recently failed to find another one, which means much more often than not they do not displace workers who fail to find a job.
More importantly, with a higher unemployment rate there is an economic opening for entrepreneurs to exploit those unemployed persons, meaning that there is, again in the long run, greater wealth for everyone.
But hey, my intuition could very well be wrong. If you know of a credible study that shows how the US gains an economic benefit from illegal immigration, feel free to share.
Mora, M., & Dávila, A. (2006). Mexican Immigrant Self-Employment Along the U.S.-Mexico Border: An Analysis of 2000 Census Data. Social Science Quarterly (Blackwell Publishing Limited), 87(1), 91-109.
Mora, M. (2007). The Geography of American Poverty: Is There a Need for Place-Based Policy?. Journal of Economic Issues (Association for Evolutionary Economics), 41(4), 1191-1193. Retrieved from Business Source Complete database
Dávila, A., & Mora, M. (2008). CHANGES IN THE RELATIVE EARNINGS GAP BETWEEN NATIVES AND IMMIGRANTS ALONG THE U.S.-MEXICO BORDER. Journal of Regional Science, 48(3), 525-545
With regards to your statement that increasing cultural diversity provides benefits for entrepreneurship, I would be interested in hearing how allowing unrestricted immigration from Latin America would lead to an increase in cultural diversity. Per the 2008 US census estimate, the Latino American demographic makes up about 15% of the US population, making them the second-largest group of people in the US. Given the size of that demographic, I would argue that Latin American culture is already very well represented in the US
But, as you pointed out, the group is underrepresented in entrepreneurial ventures. As such the generations that follow are the ones that will provide the cognitive diversity.
The investment of absorbing cheep labor today will pay off massive dividends in the future.
there are a much greater number of people who fear illegal immigrants not because of the potential for cultural contamination, but because of the potential for competition for resources.
Which would be fine, if they were, actually, consuming more than they were creating.
I can entirely see how it LOOKS like this from the outside as well. But this is not what either modern economic, political science, sociology theory or empiricism tells us.
You state that we can always change the law to allow more immigration from Latin America. While that's true, that raises the question of why we should allow for more immigration.
The intrinsic value of the worker.
You claim that we never examine the cost of illegal immigrants against the cost of servicing the needs of blacks, poor whites, and other members of the American underclass, but there's no purpose for such a comparison.
Isn't there? If you want to argue that, on balance, there is a negative cost of a particular population, then you are making a "morals free" judgment. The legal obligation, again, is a matter of argument from authority. The law can be changed: expelling blacks would be just as "legal" as expelling Mexicans if we change the law to say as much.
If you want to implement some moralistic point of view then we have to take into account the human-cost of not enabling humans to be their best: something we do when we fail to absorb and build up the human capital that wants to be part of this country.
American society often compete for jobs and other resources
Jobs are not resources; they are producers of resources. Workers are resources! the more you have the more value your nation has.
the vast majority of Latin American immigrants have very little to offer America that legal residents aren't also able to provide
able to provide vs. optimal are two different things. The cream should rise to the top: why should someone with a high+school degree be suck digging ditches? Why should someone with an associates be shelf groceries at wal-mart?
considering that millions of legal residents are sitting idle while they await opportunities for employment, I simply don't see a benefit to allowing unfettered immigration from Latin America.
This is why it is important to understand the benefits for everyone of increased resources.
yes, the price of low-end human capital flooding the market will be depres the price for a while. But in the long run America is exceptional and everyone is better off having more people to produce more for everyone else.