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Illiberal Belief #25: Immigration Must Be Restricted – Article by Bradley Doucet

Illiberal Belief #25: Immigration Must Be Restricted – Article by Bradley Doucet

The New Renaissance Hat
Bradley Doucet
September 15, 2013
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Those of us who believe in the rightness and the benefits of free markets spend a good deal of time defending free trade between countries. But aside from the free movement of goods and services across international borders, augmenting the free movement of people across those borders would, I believe, greatly increase the peace and prosperity of people the world over. Opening up our borders to increased immigration is in fact demanded both by considerations of economics and of justice.Unfortunately, immigration is not very popular. The Economist reported in 2008 on a November 2007 poll of Europeans showing that only 55% of Spaniards and 50% of Italians considered migrants a boon to their economies—and that’s the good news. The number for Brits and Germans was only 42%, and for the French it was a dismal 30%.

One reason we fail to appreciate the economic benefits of immigration is that we are predisposed to see the world in zero-sum terms. We assume, for instance, that there are a limited number of jobs available. Immigrants, we worry, will steal “our” jobs and depress the wages of those who manage to hang on to theirs. This worry is especially prevalent with regard to the poorest, least-skilled workers. In fact, there is little evidence to support this worry. Even the least-skilled migrants do not just suck up jobs; they also help create jobs, since as consumers they raise demand which itself gets translated into more jobs. They can also free up skilled workers to re-enter the workforce by providing childcare, for instance. According to The Economist, the numbers tell a similar story: “Studies comparing wages in American cities with and without lots of foreigners suggest that they make little difference to the income of the poorest.”

Fear of Foreigners

We humans also seem predisposed to fear those who are different from us, and events in recent years have not exactly been reassuring. From riots in France to devastating terrorist attacks in the U.S. and elsewhere causing massive damage and loss of life, we see people from different cultures causing various levels of mayhem, and our natural xenophobia is reinforced.

But the unrest in France is not so much evidence of a deep cultural divide between Western hosts and Eastern immigrants. There do exist important cultural differences, but it is also the case that France’s sclerotic employment regulations deserve much of the blame for recent unrest. By making it extremely difficult to fire employees, those regulations discourage the hiring of employees— especially the hiring of foreigners of whom one might already be suspicious. Sky-high rates of unemployment in an immigrant population, while not excusing violent demonstration, surely help to explain it.

As for terrorism, it is clearly just a fanatical fringe of Islamists who are so fervent in their beliefs that they would commit suicide and murder hundreds or thousands of innocents for their cause. There is no reason for a free society to fear the average Muslim immigrant. Nevertheless, the War on Terror will continue to be used to justify such projects as the building of fences along the Mexican border, despite the lack of Hispanic suicide bombers and fact that the September 11 terrorists did not sneak across the Rio Grande. And while fences will not keep many out, they might keep many in. As The Economist points out, “After all, the more costly and dangerous it is to cross, the less people will feel like leaving. Migrants quite often return home for a while—but only if they know it will be relatively easy to get back in. The tougher the border, the more incentive migrants have to stay and perhaps to get their families to join them instead.”

Be Our Guest

If there is little chance that developed countries will just throw their borders open anytime soon, guest-worker plans seem like a practical compromise. For one thing, our Ponzi-style welfare schemes, to which we are still very much attached, cannot support the whole world. Temporary migration, in which foreign workers come for a limited time just to work without drawing on government benefits, would still be appealing to those workers while alleviating concerns about breaking the welfare bank. So why are they not more popular?

Well, there is the concern that some guests might overstay their welcome. As The Economist Report reminds us, “The old joke that there is nothing so permanent as a temporary migrant has more than a grain of truth in it.” The historical record is mixed, with some countries running guest worker programs that function smoothly, and others failing to enforce the temporary nature of their arrangements.

The more serious problem is that even supporters of more open immigration, especially those to be found among well-intentioned elites, as often as not oppose guest worker programs. These critics lament the creation of a second-class of citizens. It is not right, they argue, to withhold welfare benefits from guest workers. They worry also about the possibility of those second-class citizens being taken advantage of and abused by unscrupulous employers. But is the answer to keep people out altogether, holding out for true open borders some day?

Harvard economist Lant Pritchett is the author of Let Their People Come. In an interview with Kerry Howley in the February 2008 issue of Reason magazine, he addresses concerns about second-class citizens: “The world now is divided into first-class citizens of the world and fifth-class citizens of the world.” He adds that, ironically, in places like the Middle East where people are not so concerned about denying migrant workers all the benefits of citizenship, immigration is high but far less controversial. “One of the awkward paradoxes of the world is that Bangladeshis and Pakistanis and Nepalis are enormously better off precisely because the Persian Gulf states don’t endow them with political rights.” [Emphasis in original.]

Internal Dissent

There are in fact some libertarians, most notably Hans-Hermann Hoppe, who argue against opening the borders to greater immigration. Hoppe has a case to make, but I don’t think it gets him nearly as far as he thinks it does. First, he points out that a truly free society would have no single, national immigration policy. Rather, the many private owners of land along the “border” would decide whom to allow onto their land, resulting in a patchwork system in which some areas would tend to restrict entry and others would throw their gates wide open. Under current conditions, though, Hoppe sees immigration as “forced integration” because, given existing anti-discrimination laws, people are forced to associate with others they might not wish to associate with. In a truly free society, people would be free to choose with whom they wanted to associate.

Until they are, however, governments should come up with second-best, least-bad national immigration policies. Hoppe argues that in order to minimize the harm to the rightful owners of the land in America (i.e., the current American population) the American government should follow a policy “of strict discrimination.” Immigrants should have “an existing employment contract with a resident citizen” and demonstrate “not only (English) language proficiency, but all-around superior (above-average) intellectual performance and character structure as well as a compatible system of values—with the predictable result of a systematic pro-European immigration bias.”

Of course, we all have an interest in keeping out hardened criminals and terrorists. The main problem I see with Hoppe’s logic, though, is that if America (or Canada) were a truly free society, many hard-working foreigners (and not necessarily Europeans or those of above-average intellect, either) would have bought into ownership of some of the land in North America. A system that tries to minimize harm to the rightful owners of the land should also minimize harm to these multitudes who would have been owners if the society were truly free. This suggests to me far more immigration than Hoppe envisions, and far more than is currently allowed into sparsely populated North America.

Slow But Sure

Lant Pritchett asserts that holding out for more sweeping change is the wrong way to go. “I think we’re going to move ahead on migration; people are going to become more and more exposed to the fact that people from other places in the world are, in very deep ways, human beings exactly like us; and eventually, in an unpredictable way, the attitude toward this will shift.” Small changes will beget more changes—with the added benefit of slower change being less disruptive for host countries.

Removing immigration restrictions, even if only a little at a time, is an excellent way to help the world’s poor. Immigrants themselves benefit, of course, but so do their families back home, through remittances. Says The Economist, “For most poor countries remittances are more valuable than aid. For many they provide more than aid and foreign direct investment combined.” And because money is remitted directly to families, it neatly sidesteps the problem of corrupt government officials siphoning off aid money to enrich themselves.

In the end, those who oppose more open borders must ask themselves by what right they would deny the freedom of movement of others? Put differently, by what right would they deny the freedom of association of those of us who want more open borders? Increased immigration would help the world’s hard-working poor, and without entailing the negative consequences we fear. But most of all, it’s just the right thing to do.

Bradley Doucet is Le Québécois Libre‘s English Editor. A writer living in Montreal, he has studied philosophy and economics, and is currently completing a novel on the pursuit of happiness. He also writes for The New Individualist, an Objectivist magazine published by The Atlas Society, and sings.
Are Immigration Laws Like Jim Crow? – Article by David Bier

Are Immigration Laws Like Jim Crow? – Article by David Bier

The New Renaissance Hat
David Bier
July 7, 2012
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Alabama Governor Robert Bentley was forced to defend his state’s harsh immigration law recently against charges that it amounts to a return to segregation-era racially biased policies.  “What took place in the civil rights era was a series of unlawful actions against lawful residents,” Bentley said in response to the charges. “It was a shameful chapter in our state’s history. The immigration issue of today is entirely different.”

Parallels to segregation might be slightly overdone, but to call immigration policies “entirely different” is disingenuous. America’s restrictive immigration system was invented by the Eugenics Research Institute’s future president, Rep. Albert Johnson (R-Washington), who wanted to protect America’s racial purity from, in the words he quoted from a State Department official, “unassimilable . . . filthy . . . and often dangerous” foreigners. While such laws are no longer justified on racial grounds, their impacts today are just as ethnically disparate—more than 80 percent of immigrants labeled “illegal” are Hispanic, and 97 percent (pdf) of deportees are Hispanic.

Nor was segregation “unlawful”—it was a bizarre system of legal controls. Although it’s best known as a system of social control, it was just as much a system of economic regulation. Jim Crow began humbly—with segregated streetcars in Georgia in 1891—but quickly escalated, imposing on southern businesses ever more burdensome requirements: twice the number of bathrooms, waiting rooms, ticket counters, phone booths, even cocktail lounges. The president of Southeastern Greyhound told the Wall Street Journal in 1957, “It frequently costs fifty percent more to build a terminal with segregated facilities.”

Businessmen Conscripted

Since laws that intend to control personal behavior are so rarely enforceable, governments conscript business people to act as de facto State agents. In this way social controls quickly morph into economic regulations. It is often forgotten that the railroad in the infamous Supreme Court case Plessy v. Ferguson (1896) actually helped fight  the “separate but equal” doctrine because it “saddled employers with the burden of becoming the state’s race policemen.” Immigration law, which began as a way to restrict the movement of foreigners into the United States, has followed exactly the same pattern. Today a vast portion of America’s immigration code targets businesses, not foreigners.

Jim Crow’s regulatory state only affected businesses that served both white and African American patrons. For most small businesses, the costs of the regime were simply too great. Similarly, for many businesses today, hiring migrant workers has just become too dangerous. “I always relate it to tax law,” labor law consultant Barlow Curran recently told the Tampa Tribune. “Federal tax law is so complicated that if the IRS audits you, regardless of how careful you’ve been, they’ll probably find something. The same thing is true of farm labor law.” No wonder Immigration and Customs Enforcement has imposed $100 million in fines in just the last three years alone—more than the Bush administration’s previous eight years.

Alabama has only added to these regulatory threats. The state’s HB 56—enacted a year ago—mandated that employers use E-Verify to check the work authorization for potential employees. Over 60,000 Alabama businesses missed the deadline. If employers are unable to comply, they face license suspensions and may even be given the “business death penalty,” permanent closing.

As Isabel Wilkerson documents in her Pulitzer Prize-winning The Warmth of Other Suns, more than six million African Americans fled the Jim Crow South and left many southern employers facing labor shortages. “Farmers . . . have [woken] up on mornings recently to find every Negro over 21 on his place gone,” editorialized the Macon Telegraph in 1916 as the Great Migration began. “And while our very solvency is being sucked out beneath us, we go about our affairs as usual.”

Fleeing the State

Alabama is discovering that harsh immigration laws can just as easily “suck the solvency out beneath” them. “From a business point of view, it’s a terrible piece of legislation,” Henry Hagood, CEO of Alabama Associated General Contractors, told Reuters. “My counterparts around the country are saying, ‘thanks for sending workers our way.’” Tens of thousands of workers have already fled the state. University of Alabama professor Samuel Addy found that losing these workers reduced the state’s GDP by between $2.3 billion and $10.8 billion.

Conservatives who profess a commitment to the free market must extend that commitment to the labor market. They must realize that harsh immigration laws have the same dire effects on business as other burdensome regulations. They limit not only the free movement of foreign workers but also the rights of American businesses to hire, transport, and associate freely. They need to go the same way as Jim Crow—into the dustbin of history.

David Bier is the immigration policy analyst at the Competitive Enterprise Institute.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.