However, the word cheap is a relative term. When cheap is used to mean illegal persons subject to exploitation and abuse outside the law with their income not properly accounted for or taxed, then it should not be allowed. Cheap, within the law, is inevitable, like poverty, which is not a fixed condition or amount. In any structured society, somebody is always on top in power, wealth, or perks and somebody always has less and therefore is poorer or cheaper to hire.
Cheap labor allows for good to be produced cheaper. When goods are cheaper more people are able to purchase more goods. If more people are buying and less money is being wasted on labor companies will profit. If companies profit more then employees will be paid more money. When employees are paid more they buy more. It's an endless cycle of economical success.
I think that cheap labor is good for the American economy, because it allows a person to work if they want to. A person no longer has an excuse for not getting up and going to work if they want to. Anyone who wants a job can have one. Cheap labor helps us all.
Cheap labor is bad for the economy overall. The best example is that of fast food workers, many of which actually qualify for food stamps. Highly profitable companies, such as MacDonald's, should not receive welfare through the form of tax payer subsidies to help their employees survive. The burden hurts tax payers, and is thus bad for the overall economy.