How would one counter Hitchens' argument about Jesus's birth?

First of all, I'm suspect you have greatly abbreviated his argument, because even Hitchens couldn't be so stupid as to use that as evidence against theism/christianity. Even if i was to grant this ridiculous argument some legitimacy, it's premise is still incorrect. The Jews were very literate for the time. Every child was expected to learn to read Hebrew and recite in the synagogues.