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Alex Nowrasteh

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Mad About Immigration? Blame the Federal Government

Posted: 10/13/11 08:24 AM ET

Alabama's anti-immigrant law, HB 56, was recently upheld by a federal judge, giving hope to immigration restrictionists in other states. Indeed, Alabama is not alone in passing draconian state-level immigration laws. Other states, including Arizona, Georgia, and South Carolina, are adding more regulations to our already convoluted immigration system. Unfortunately, states can only make the immigration laws worse, not better. While Utah is attempting to issue state level work visas for Mexican workers, that effort will almost certainly be stopped by the courts. But focusing on state policy ignores the federal source of our problems.

Unauthorized immigration occurs because it is so difficult to immigrate legally. Every year, the U.S. government issues 480,000 green cards for family members, with more immediate family members exempted from the numerical cap. There are an additional 140,000 employment-based green cards available yearly (almost all for relatively higher skilled workers) as well as 50,000 so-called diversity visas allocated via lottery. Work visas are too few and expensive to make up for the paucity of green cards.

Many want to legally immigrate to the U.S., but few are legally able to. A recent Gallup poll indicated that 165 million people around the world said they would like to move to the U.S. Since 14.8 million qualified applicants entered this year's diversity visa lottery for 50,000 green cards, many millions more were dissuaded by their low chance of winning a highly coveted green card, many millions would move to the U.S. to work if they legally could.

The roughly 14,750,000 losers of the small green card lottery program are evidence of how restrictive our laws are; the inflexible nature of our system is the reason why so many break our immigration laws.

According to the Congressional Research Service, there are approximately 11.2 million unauthorized immigrants in the U.S. America is substantially harmed by these restrictive barriers that create black markets domestically, punish American producers, and keep millions of productive people locked in countries lacking the opportunities for upward social mobility that market institutions make possible.

From its inception, America had open immigration along with the rest of the world. Indeed, one of the many complaints against King George III in the Declaration of Independence was that he "endeavored to prevent the population of these states; for that purpose obstructing the laws for naturalization of foreigners; refusing to pass others to encourage their migration hither." In other words, King George III wasn't pro-immigration enough for the Founding Fathers.

From then until 1882, with very few exceptions, anyone could come to the U.S. who was healthy or not obviously a criminal. That year, Chinese immigration was shamefully banned. Throughout the Progressive Era, progressives, labor unionists, and protectionists combined forces to slowly erode America's traditional free immigration policy. Congress closed the door in 1921, locked it in 1924, and threw away the key in 1931 through increasingly restrictive laws. Since then, unauthorized immigration has been a problem in America.

The Bracero Program
allowed Mexican workers temporary employment during World War II. After the war, the program continued for agricultural workers. But the number of work permits was initially insufficient. In the early 1950s the U.S. was facing large numbers of undocumented immigrants. Instead of just deporting workers and trying to shirk the laws of economics, Congress massively increased the number of work permits available. According to research done by the CATO Institute, the Bracero Program's expansion decreased illegal border entry by more than 90%. Work visas destroyed much, but not all, of the black market.

In the early 1960s, the National Agricultural Workers Union and the Agricultural Workers Organizing Committee pressured Congress to kill the Bracero Program which they achieved by 1964. The Immigration Act of 1965 then increased the amount of annual immigration and removed the country of origin quotas that dominated the previous system. But temporary work visas virtually disappeared until they were revived by the Immigration Act of 1990. During the same time undocumented immigration increased but there were never enough legal avenues, green cards, or work visas issued to satisfy demand.

Today, unauthorized immigrants come largely from Mexico and Central America. According to a report by the Congressional Research Service issued in September 2011, of the roughly 11.2 million unauthorized immigrants in the U.S., 80% or about 9 million are from Mexico and Latin America. But as the Mexican and Central American economies are developing quickly, with some pointing to Mexico's per capita GDP growth of 45% from 2000 to 2009 as proof, potential migrants will see fewer reasons to emigrate. Mexicans and Central Americans will also have fewer reasons to emigrate if American growth remains anemic in the future compared to their home countries. As their incomes rise, fewer will come over the border.

But other people around the world will begin immigrating in large numbers as soon as American economic growth revives. Our immigration system was overtaken by events long ago. It need not happen again.

To prepare for the next round of newcomers, Americans can look back to our Founding Fathers' legacy of free immigration for peaceful and healthy people. While free immigration is a political pipe dream, there are some reforms that increase the number of visas and green cards and bring us a step closer to America's traditional immigration policy.

The Red Card (identity card given to temporary workers) solution would increase the number of temporary work visas dramatically, shifting unauthorized immigrants into the legal system. Issuing more green cards to qualified applicants is another way to channel unauthorized immigration into legality. An immigration tariff is another way to do it. Regardless of the type of reform, repairing the federal immigration system, not increasing state level regulation, is the solution for our broken immigration laws.


 

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voyager48
Illegitimi Non Carborundum
12:10 PM on 10/15/2011
The old tired party line argument that poor illegals are coming here because of the poor economy in their own country is BS. BBVA Bancomer published a report showing that the reverse is acutely true and the reason has simply because of demand for low wage workers in the US. With the downturn in their economy, so have the fortunes of the illegals reversed and returning nationals face a far worse economic situation than when they left. Unemployment is rising and the Mexican economy is slowing down. Although ironically the hardest hit are their higher educated nationals.

80% if illegals are Hispanic and the vast majority of those are from Mexico. What has got Mexico worried is that the $7Bn loss in wages earned by illegals in AZ alone (mainly in the now defunct construction industry) is equivalent to one third of the 2009 remittances to Mexico.

Now you see why Mexico is going ape trying to block anti-illegal immigration laws!
10:28 AM on 10/14/2011
This Author has an economic view that is stuck in the last century. That for the USA to prosper we must horde all economic development in the USA and economic development elsewhere is a threat. They claim economic development outside the USA is simply Outsourcing and thus a bogyman. But in today's global marketplace it no longer matters where the jobs are created once the USA reaches full employment so long as Americans can reap benefits from foreign economic expansion.

When our workforce is fully employed creating jobs in Mexico or Central America helps elevate those countries to our level of economic development. The need for millions of people to relocate to find work becomes unnecessary. Our modern communication and digital systems makes Tegucigalpa as close as Tennessee.

So why do we not relegate the migration model of economic development to the history books? Because a small group of individuals stand to lose power if economic development becomes too widespread. While keeping countries south of our border poor means they can be exploited forever for cheap labor immigration.

Economies cooperate. It is Businesses that compete. Take Honda and Chevrolet as an example. Which car do you buy? Some Honda vehicles have the highest US made content of any vehicle on the market. But because Chevrolet is a US Company some people say do not buy a Honda because it is Japanese. Does this make the US Worker better off? Or just the owners of the business?
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voyager48
Illegitimi Non Carborundum
12:23 PM on 10/15/2011
Big US companies are no longer actually American neither are investors. They may be based here but they do simply what is good for them in order to make money. If that means putting plants, resources or investments offshore then they will do it in a heartbeat. How much of what they do & earn translates into tax revenue, consumption or is in any way helpful to the US and its citizens?

While I really do not agree with their ideology or methodology China has got a couple of things right. Foreign companies there could only establish a local operation if the state had a 50% share in the business. That effectively put the state in control of every business in the country which is a massive turn off but at least that way whatever happened, the state could make sure that the benefits accrued to the people.

Where our government continues to fail is by not running the country to the greater good of the country. We have become so caught up on PC nonsense that we have lost site of what is important. Companies are citizens like the rest of us and should be held to high account in their efforts to stabilize and provide a better overall environment for our citizens. If we need jobs then the government should be looking to local business to provide them. Otherwise the GM's and GE's may as well be headquartered in Switzerland for all the good they are doing us.
03:49 PM on 10/17/2011
Voyager48 - Your data regarding business is seriously out of date. For almost a decade China has allowed what is called a WOFE or Wholly Owned Foreign Entity. The days of the government demanding a 50% stake are long gone. The way China encourages local business is with an import duty that can be as high as 30%. US Import duty is below 4%. You have to be very careful with import duties. Imposing them is what turned a recession into a depression back in the 1930's.

For many industries the specter of outsourcing is a tempest in a teapot and the reason Illegal Immigration is so damaging. According to the Pew Center the jobs where Illegal Immigrant Workers are most prevalent are Farming, Construction, Transportation and Material Moving, Food Service, and Cleaning. By the nature of this work NONE of these occupations can be outsourced. Try outsourcing the construction of buildings to China. Try harvesting American crops, mining American ore, preparing American food, cleaning American buildings, or moving goods in America with workers living in China or India or even Mexico. It cannot be done. Illegal Immigration deprives American Workers access to American Jobs in America.

Three key factors prevent outsourcing. Where is the raw material from, how much native technology is in the finished product, and the cost of freight to move the product to the consumer. These three factors override the opportunity of cheap labor more often than not and make Illegal Immigration profitable.
09:49 AM on 10/14/2011
In reality, the unlimited supply of under and unemployed global labor dwarfs the limited supply of USA jobs. A free flow of labor would cause USA unskilled and semiskilled labor wages to fall to third world levels through wage competition. This inevitable downward spiral is predicted by the Law of Supply and Demand. This powerful economic force is the great equalizer. The much smaller market of US wages would be driven to reflect the pay level of the grossly larger foreign wage market. After all, the tail does not wag the dog. Even Milton Friedman had to admit that if the massive number of foreign underemployed and unemployed workers worldwide had free access to the limited supply of US jobs the result would be an unemployment disaster as our job markets become swamped with workers far beyond our ability to create jobs.

But that is not all. This Author assumes that a bigger economy is always better. Bigger is better may be true when it comes to male enhancement, but when it comes to economies, it is the quality of the economy that counts, not the size. Canada has a smaller economy than Mexico but who is better off? Economies such as ours are powered by disposable income. That is income beyond that needed for food, shelter, clothing, and transportation. Anything that causes this income to shrink shrinks average GDP. Even if the overall economy grows; if such growth causes average GDP to shrink then bigger is universally poorer.
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voyager48
Illegitimi Non Carborundum
12:36 PM on 10/15/2011
Agreed but the government's job is to manage that and that is where Obama is particularly clueless. As they say OMG - Obama Must Go!

We have to understand what we are good at and build our economy on that. It used to be manufacturing but that has all gone away. However the one thing they can control is how our currency stacks up against our trading partners. Effectively devaluing our currency would make us poorer in global terms, it would make us more competitive and bring jobs back on shore. The only ones doing well so far in the new America are people whop were already doing well and had money - big companies and investors. The rest of us are slowly being squeezed to death by having to effectively compete within our own borders for slave wage jobs against with illegal immigrants and in the global pool with wages in India and China that are way closer to being livable by third world living standards than doing the same thing here.

The whole thing is out of whack and parity should be leveling the playing field but the economy is being systematically engineered to prevent this by pandering to investors.

The more things change - the more they stay the same! I think the 99 percenter's are just modern day hippies and Occupy Wall Street is their Woodstock. But there are some interesting perspective amongst what is being thrown out there.
04:17 PM on 10/17/2011
It is nice to see someone in the Illegal Immigrant debate thinking on economic terms. But there is one pop fallacy in your reasoning that you may not be aware of. Today, America produces more manufactured goods that ever according to statistics. But we do so using so much automation that industrial jobs are also at an all time low. Toyota and Honda produce most of their US sold cars here in the USA and even export some back to Japan.

When people see a large collection of products in stores that come from places like China they fail to realize that the products are simply low end and labor intensive. The USA is a high end manufacturing powerhouse. Our problem is Free Marketers insist on believing that a chronic trade deficit is not a problem.

As long as we have an unbalanced trade policy wealth is sucked out of the USA causing everyone to become poorer. But even so, if you look at wealth of our poor, and even though we are in the midst of a recession now, our poor today have a higher measure of wealth than they did back in the 1070's and before. They showed that chart on one of the Sunday talk Shows (I do not remember which one).

It’s the Free Marketers and their insistence that with huge wage differences worldwide, somehow international trade is a free market. This causes the bottom to drop out of the US wage structure.
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HUFFPOST SUPER USER
chevyliddle
what's a micro-bayou?
06:21 AM on 10/14/2011
"Unauthori­zed immigratio­n occurs because it is so difficult to immigrate legally."

But 1.1 million seem to make it legally every year. How is that? If we weren't so overrun with the illegal immigrants, just think how many more might be authorized.
03:55 AM on 10/14/2011
couldn't agree with your post more Mr. Nowraseth. thanks for droppin the knowledge!
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HUFFPOST SUPER USER
ugly american
"I drank what?"- Last words of Socrates
02:17 AM on 10/14/2011
Rarely mentioned are the laws of Mexico, our southern neighbor. (http://www.washingtontimes.com/news/2010/may/03/mexicos-illegals-laws-tougher-than-arizonas/)
Their laws are much harsher than any in the United States.
Under Mexican law, illegal immigration is a felony, punishable by two years in prison. Immigrants deported and attempting to re-enter can be imprisoned for 10 years. Visa violators can be sentenced to six-years. Mexicans who help illegal immigrants are considered criminals.
Mexico can also deport foreigners who are detrimental to “economic or national interests,” violate Mexican law, are not “physically or mentally healthy” or lack the “necessary funds for their sustenance” and for their dependents.
And their people complain that our laws are evil? Compared to theirs, our laws are amnesty.
A nation that does not protect their borders will not remain a sovereign nation for very long.
Illegal immigration exists almost everywhere in the world (even India ) and as yet, none have decided that opening their border to all comers is a solution.
Softening our laws because foreigners here already violating them say they are "draconian" is giving in to being conned by those same foreigners. Opening our borders would be tantamount to surrendering our national sovereignty.
11:04 PM on 10/13/2011
Mad about over-population, overflowing schools and deteriorating resources? Blame illegal immigration.
10:52 PM on 10/13/2011
No more newcomers. Haven't You seen the "No Vacancies" sign?
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HUFFPOST SUPER USER
markspence
09:53 PM on 10/13/2011
If these 165 million people from around the world who wanted to live here were to show up overnight, what kind of country would we have?
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spytheweb
Black Democrat
09:38 PM on 10/13/2011
"Unauthorized immigration occurs because it is so difficult to immigrate legally."

Unauthorized immigration occurs because many of these illegals would not meet the requirements for entry unless we lowered our standards. It's difficult to enter because we don't want the world's bums to come here.

"The poll proves that our collective gut is indeed in line with reality: 80% of world citizens, from Russia and Brazil to America and India, feel that immigration has increased over the past five years, with 52% feeling it’s too much.  Of respondents, 45% believe this immigration has a negative impact.  This is legal, above-board immigration with which people are taking issue.
While politicians in America typically focus on the 12 million or so illegal immigrants, they often ignore that the country is taking in new legal immigrants at a rate of over a million every year."

http://www.humanevents.com/article.php?id=45352
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OMEGA MAN
A wise man learns from the mistakes of others.
09:33 PM on 10/13/2011
For the first time in 60 years, the net traffic of Mexicans to the United States has been reduced to zero and perhaps even shows a negative balance. The salary differential between the U.S. and Mexico has gone from being an average ten times higher to only four times higher.

http://watchingamerica.com/News/125794/zero-migration/
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IllTakeTheRedEye
Do you know what a nonemployer business is?
09:50 PM on 10/13/2011
Recent HP articles, but likely other NEWSspots around the internet as well, have provided anecdotal 1st-person accounts that Mexicans are still entering the USA illegally. Just go to Immigration here at HP, and click some of the Alabama articles. You will see one couple that admitted that they entered the USA illegally in 2009. Therefore, I do not believe this propaganda that Mexicans entering are zero or negative, the evidence even here at HP is contrary to that.

IN terms of the wage differential between Mexico and the USA, if it is narrowing, it is because of wage suppression and wage reduction in the USA thanks to an oversupply of both ILLEGAL and legal foreign nationals from Mexico into the USA. Mexico has been in 1st place every year for the last 30+ years receiving USA green cards, and number one as illegal aliens for the last 30+ years as well. If you need links from DHS on that, just let me know.
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OMEGA MAN
A wise man learns from the mistakes of others.
11:35 PM on 10/13/2011
I thought people may find the Mexican Newspaper article interesting. You may be interested in this link.
The unemployment rate for the foreign born was 9.8 percent in 2010, little changed from
a year earlier, the U.S. Bureau of Labor Statistics reported today. The jobless rate of
the native born was 9.6 percent in 2010, up from 9.2 percent in 2009. The foreign born
made up 15.8 percent of the labor force in 2010.

--Over the year, the number of foreign-born labor force participants rose, while
the number of native born in the labor force declined. (See table 1.)

http://www.bls.gov/news.release/forbrn.nr0.htm
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voyager48
Illegitimi Non Carborundum
12:54 PM on 10/15/2011
GAO reported in 2010 that less than 45% of our border is under effective control.

DOJ estimates that 3 out of every 4 illegals attempting to enter the country succeeds. Based on 2010 apprehension rates then we can believe that almost 2 million illegals tried to enter the US last year. Net of deportation and apprehensions we had a net gain of around 1 million.

Obama's answer to the problem then is to stop apprehending illegals and say that because we are no longer catching anyone trying to enter - people have simply stopped trying to come here. In fact all that has happened is the success rate just went to 100% because the odds were heavily in their favor to start with but now they get to keep trying till they get it right.

BBVA Bancomer put out a report saying that the demand for low wage workers in the US was the principle driver in illegal immigration. Migrants returning now face significantly worse economic prospects than when they left.

In fact BBVA showed that the lost wages to Mexican illegals from the Arizona construction downturn equated to $7Bn - one third of the total remittances form the US to Mexico in 2009.

Overlay this on the steadily worsening employment rate in Mexico and you will understand why they are batting so manically against immigration enforcement in the US.

The real question is - why are Obama and Hillary their biggest allies in this?.
03:34 PM on 10/15/2011
I have the utmost admiration for you, but why did you have to throw Hillary in your comment. Isn't it ultimately the President's decision, or am I incorrect -- again.
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IllTakeTheRedEye
Do you know what a nonemployer business is?
07:32 PM on 10/13/2011
NOTE: Following saved in the even it does not appear

What is the deal with this guy Alex?

Year 2009
747,413 Family sponsored immigrants
144,034 Employment based immigrants
47,879 Diversity based immigrants
177,368 Refugees and asylees
11,739 Other
(PDF pg 3)
http://www.dhs.gov/xlibrary/assets/statistics/publications/lpr_fr_2009.pdf

The above actuals for 2009 are close to the average for 1999 through 2010. What Alex wrote is 480,000, 140,000 and 50,000. Alex's numbers are 650,000 for the year and Nowhere near the average of 1.1 million over the last decade.
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IllTakeTheRedEye
Do you know what a nonemployer business is?
08:03 PM on 10/13/2011
Also Alex, of those 1.1 million green cards issued in 2009, do you really believe that only 144,034 work in the USA? No Alex, the other 1 million foreign nationals per year that receive a green card also work in the USA.

Unbelievable, it is the say anything Alex that wants open borders.
03:58 PM on 10/13/2011
For those illegal immigrants who have been here for years, we need to make an accomodation. However, with unemployment at 9.1%, why do we need to issue any green cards at all? Doesn't it make sense to increase legal immigration during boom times and eliminate it during economic slowdowns? There is no incentive for businesses to adopt and retrain workers from dying industries, if they can hire already trained workers at lower wages from foreign countries.
HUFFPOST SUPER USER
PulSamsara
03:23 PM on 10/13/2011
Yes. I'm mad that the laws are not enforced. Enforce our immigration laws NOW ! Deport offenders NOW !
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HUFFPOST SUPER USER
markspence
02:43 PM on 10/13/2011
Neither the author nor the organization he works for are in the mainstream of political and economic thought. They favor very limited government role whatsoever in any area of society. www.cei.org