Correct, but somewhat irrelevant. Labor-intensive farming is, itself, a very labor-intensive activity, which produces less per worker and thus pays less per worker than any job available North of the border. Mexicans aren't leaving Mexico because there's no work in Mexico (Mexico has an unemployment rate of 4%), but because jobs in Mexico don't pay well.In North America specifically, the North American Free Trade Agreement has allowed cheap, US-grown corn to enter the Mexican market, undercutting Mexican farmers and forcing them to seek work elsewhere.
Bad policy has done that, and good policy has made the US, Europe and Northeast Asia successful by comparison. And good or bad policy can happen under any system (compare Pol Pot's Cambodia to Soviet Russia, for example).Thus, capitalism has created the conditions that make undocumented immigration into the US the only choice for many Mexicans and other Latin Americans.
If there are more workers within the country, they must either produce more or get paid less, wage disparities notwithstanding. That's basic math. Zero profit would simply mean the workers would get paid more (and then only marginally more -- most corporations run on a profit margin of 15% or less).It is not the presence of undocumented immigrants in our economy that drives down wages, but rather the corporations that take advantage of their willingness to work for such meager wages. If corporations were less motivated by their profit margin and more motivated by humanitarian ideals, undocumented immigrants would earn wages equal to those of American citizens, and wages would have remained higher.
Denmark is a capitalist economy, exactly the same as the US. Its economic structure is actually more business-friendly than the American economic structure, as it has a laxer regulatory structure and lower corporate taxes.A different mode of production is precisely what we need - I don't disagree that SOME other modes of production may have the same effect, but there are some that would not. Take Denmark, for example. There is a very small gap between the highest earners and lowest-paid workers in Denmark. The average tax rate is 52%. And it has been named the happiest country in the world several years in a row.