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Does America Ban Immigration? – The Land of the Free Isn’t, For Most People – Article by David Bier

Does America Ban Immigration? – The Land of the Free Isn’t, For Most People – Article by David Bier

The New Renaissance Hat
David Bier
August 3, 2015
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The United States has a de facto ban on immigration. We can debate about whether this prohibition is necessary, but its existence is undeniable. Other than a few exceptions for family members, refugees, and the highly-educated, it is virtually impossible to come to the United States to live and work legally.

Historically, America held its doors open to all. But in the 1920s, a coalition of unions, progressives, and eugenicists combined to slam them shut. Within a year of passing Alcohol Prohibition, America also banned almost all forms of immigration, cutting immigration by nearly 80 percent.

Alcohol regained its legal status, but immigration never quite recovered.

Today, the government lets in almost a million immigrants each year, but this impressive-sounding number misses the entire legal, historical, and global context of our immigration system. We must compare it to the number who would come if only they could do so legally — and the reality is that most types of immigration are entirely prohibited. To deny the ban on immigration because it has exceptions is like denying Alcohol Prohibition because it allowed communion wine.

The half million people apprehended at the border each year and the 11 million unauthorized immigrants in the country are the clear evidence of this prohibition. The massive immigration underground points to an obvious yet largely ignored fact: If there was a legal way for them to come, they would have taken it. But, trouble is, one doesn’t exist.

The drastic shortage of visas is evident in the unbelievably long wait times for permanent residency. For certain categories, the wait is decades. For employment-based visas, certain Indian and Chinese workers will wait more than a decade. For Mexico, three different family-based categories have wait times over 18 years. There’s northward of 4.3 million people in these lines alone.

Yet these impossible lines hide a deeper problem: most would-be immigrants have no line to stand in at all.

The reality is this: 92 percent of legal immigrants are either 1) immediate family members of US citizens or permanent residents, 2) refugees or asylees, or 3) college graduates — and over 80 percent those needed an advanced degree or at least $500,000 to invest in projects in the United States.

This leaves less than 65,000 visas for everyone else. More two-thirds of these come through a lottery system for which 11 million people applied last year. People in most of the largest countries in the world, including India, China, and Mexico, aren’t even eligible to apply.

This legal flow amounts to barely 7 percent of the average number of immigrants apprehended at the border each year since 2004 (and, of course, that doesn’t count those who crossed successfully, or those who entered and overstayed their visas, or those who would come if there was a legal opportunity). For people without a college degree or a close American relative, the Statue of Liberty’s “Golden Door” is almost completely shut.

Meanwhile, PhDs, scientists, movie stars, pro-athletes, and other elites have a number of different work visas available to them. These allow them to live and work year-round in the United States.

By contrast, there is no work visa that allows lesser-skilled laborers to live and work year-round in this country. Unsurprisingly, this lesser-skilled demographic is disproportionately represented in the illegal population, 85 percent of whom lack a college degree.

Another reason we know that illegal immigration is being driven by the lack of a legal alternative is because of what happened when the government allowed foreign workers to come and go legally.

Thanks to a fluke of history, America had a brief period when it experimented with freer migration between the United States and Mexico. In the 1950s and ‘60s, the Bracero guest worker program let in about 5 million Mexican farmworkers. From 1956 to 1965, when the program was at its height, the number of unauthorized immigrants at the border averaged just 41,000, compared to over 436,000 a year in the prior decade.

After it was terminated in 1966 by another union-led coalition, illegal immigration never again fell to such low levels — not even for a single year, let alone an entire decade. By the 1980s, a million or more immigrants were routinely being caught by Border Patrol every year.

Supporters of the ban on immigration will say that America is at its breaking point, that we’re overwhelmed, that we can’t “handle” any more immigrants. But this fear is groundless: As a share of its population, America admitted four times as many immigrants each year in the early 1900s as it did in 2014. For a century from 1830-1929, immigration was twice as high as a share of the population as it was in the last two decades.

In absolute terms, America admits more immigrants than any other country, but relative to its size, US immigration levels are far lower than many Western countries. Controlling for population, CanadaAustralia, and New Zealand all have higher levels of immigration than America today — even as high as the United States in the early 20th century — and they have not collapsed into chaos or poverty.

Immigration prohibition is real. Millions of people cross the border illegally (and thousands of businesses hire them illegally) for the same reason bootleggers had to brew booze in bathtubs. And, for the same reasons we repealed Alcohol Prohibition, we should also finally end America’s ban on immigration.

David Bier is an immigration policy analyst at the Niskanen Center. He is an expert on visa reform, border security, and interior enforcement. From 2013 to 2015, he drafted immigration legislation as senior policy advisor for Congressman Raúl Labrador, a member of the House Judiciary Committee’s Subcommittee on Immigration and Border Security. Previously, Mr. Bier was an 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 4.0 International License, which requires that credit be given to the author.

Immigration and Crime – What the Research Says – Article by Alex Nowrasteh

Immigration and Crime – What the Research Says – Article by Alex Nowrasteh

The New Renaissance Hat
Alex Nowrasteh
July 17, 2015
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The alleged murder of Kate Steinle in San Francisco by illegal immigrant Juan Francisco Lopez-Sanchez has reignited the debate over the link between immigration and crime. Such debates often call for change in policy regarding the deportation or apprehension of illegal immigrants. However, if policies should change, it should not be in reaction to a single tragic murder.  It should be in response to careful research on whether immigrants actually boost the U.S. crime rates.

With few exceptions, immigrants are less crime prone than natives or have no effect on crime rates.  As described below, the research is fairly one-sided.

There are two broad types of studies that investigate immigrant criminality.  The first type uses Census and American Community Survey (ACS) data from the institutionalized population and broadly concludes that immigrants are less crime prone than the native-born population.  It is important to note that immigrants convicted of crimes serve their sentences before being deported with few exceptions.  However, there are some potential problems with Census-based studies that could lead to inaccurate results.  That’s where the second type of study comes in.  The second type is a macro level analysis to judge the impact of immigration on crime rates, generally finding that increased immigration does not increase crime and sometimes even causes crime rates to fall.

Type 1: Immigrant Crime – Censuses of the Institutionalized Population 

Butcher and Piehl examine the incarceration rates for men aged 18-40 in the 1980, 1990, and 2000 Censuses.  In each year immigrants are less likely to be incarcerated than natives with the gap widening each decade.  By 2000, immigrants have incarceration rates that are one-fifth those of the native-born.  Butcher and Piehl wrote another paper focusing on immigrant incarceration in California by looking at both property and violent crimes by city.  Between years 2000 and 2005, California cities with large inflows of recent immigrants tended have lower violent crimes rates and the findings are statistically significant.  During the same time period, there is no statistically significant relationship between immigration and property crime.

Ewing, Martinez, and Rumbaut summarize their findings on criminality and immigration thusly:

“[R]oughly 1.6 percent of immigrant males 18-39 are incarcerated, compared to 3.3 percent of the native-born.  The disparity in incarceration rates has existed for decades, as evidenced by data from the 1980, 1990, and 2000 decennial census.  In each of those years, the incarceration rates of the native-born were anywhere from two to five times higher than that of immigrants.”

They continue by focusing on immigrant incarceration rates by country of origin in the 2010 Census.  Less educated young Mexican, Salvadoran, and Guatemalan men (poorly educated young men are most likely to be incarcerated) make up the bulk of the unlawful immigrant population but have significantly lower incarceration rates than native-born men without a high-school diploma.  In 2010, 10.7 percent of native-born men aged 18-39 without a high school degree were incarcerated compared to 2.8 percent of Mexican immigrants and 1.7 percent of Guatemalan and Salvadoran immigrants.  These are similar to Rumbaut’s older research also based on Census data from 2000.  Controlling for relevant observable factors, young uneducated immigrant men from Mexico, El Salvador, and Guatemala are less likely to be incarcerated than similarly situated native-born men.

However, studies of immigrant criminality based on Census data alone could fail to give the full picture.  First, many of the answers given to the Census may have been educated guesses from the Census workers and not the inmates.  Second, the government has done a very poor job of gathering data on the nationality and immigration status of prisoners – even when it has tried.  That biases me against the accuracy of prison surveys by the Census Bureau.  Third, incarceration rates may better reflect the priorities of law enforcement than the true rates of criminal activity among certain populations.

Type 2: Macro Level Analysis of Immigrant Criminality

To avoid the potential Census data problems, other researchers have looked at crime rates and immigration on a macro scale.  These investigations also capture other avenues through which immigration could cause crimes – for instance, by inducing an increase in native criminality or by being easy targets for native criminals.

The phased rollout of the Secure Communities (S-COMM) immigration enforcement program provided a natural experiment.  A recent paper by Thomas J. Miles and Adam B. Cox used the phased rollout to see how S-COMM affected crime rates per county.  If immigrants were disproportionately criminal, then S-COMM would decrease the crime rates.  They found that S-COMM “led to no meaningful reduction in the FBI index crime rate” including violent crimes.  Relying on similar data with different specifications, Treyger et al. found that S-COMM did not decrease crime rates nor did it lead to an increase in discriminatory policing that some critics were worried about.  According to both reports, the population of immigrants is either not correlated, or negatively correlated, with crime rates.

Ousey and Kubrin looked at 159 cities at three dates between 1980 and 2000 and found that crime rates and levels of immigration are not correlated.  They conclude that “[v]iolent crime is not a deleterious consequence of increased immigration.”  Martinez looked at 111 U.S. cities with at least 5,000 Hispanics and found no statistically significant findings.  Reid et al. looked at a sample of 150 Metropolitan Statistical Areas (MSAs) and found that levels of recent immigration had a statistically significant negative effect on homicide rates but no effect on property crime rates.  They wrote, “[i]t appears that anti-immigrant sentiments that view immigrants as crime prone are not only inaccurate at the micro-level, they are also inaccurate at the macro-level … increased immigration may actually be beneficial in terms of lessening some types of crimes.”  Wadsworth found that cities with greater growth in immigrant or new immigrant populations between 1990 and 2000 tended to have steeper decreases in homicide and robbery rates.

Using panel data on U.S. counties, Spenkuch finds that a 10 percent increase in the share of immigrants increases the property crime rate by 1.2 percent.  In other words, the average immigrant commits roughly 2.5 times as many property crimes as the average native but with no impact on violent crime rates.  He finds that this effect on property crime rates is caused entirely by Mexican immigrants.  Separating Mexicans from other immigrants, the former commit 3.5 to 5 times as many crimes as the average native.  However, all other immigrants commit less than half as many crimes as natives.  This is the most deleterious finding that I discovered.

Stowell et al. looks at 103 different MSAs from 1994-2004 and finds that violent crime rates tended to decrease as the concentration of immigrants increased.  An immigrant concentration two standard deviations above the mean translates into 40.5 fewer violent crimes per 100,000 compared to a decrease of 8.1 violent crimes in areas that experienced a change in immigration concentration two standard deviations below the mean.  It is easy to focus on the horrible tragedies when somebody is murdered by an immigrant but it’s very hard to imagine all of the people who weren’t murdered because of the lower crime rates created by increased immigration.  In their summary of the research on this topic, they write:

“[T]he weight of the evidence suggests that immigration is not associated with increased levels of crime.  To the extent that a relationship does exist, research often finds a negative effect of immigration on levels of crime, in general, and on homicide in particular.

Some immigrants from certain countries of origin may be more crime prone than others, as Spenkuch finds above.  To test this, Chalfin used rainfall patterns in Mexico to estimate inflows of Mexican immigrants.  The idea is that lower rainfall and a decrease in agricultural productivity in Mexico would push marginal Mexican immigrants out of Mexico and into the U.S. labor market.  Mexican rainfall patterns and the subsequent immigration had no effect on violent or property crime rates in major U.S. metropolitan areas.

These trends have also been found on the local level.  Davies and Fagan looked at crime and immigration patterns at the neighborhood level in New York City.  They find that crime rates are not higher in areas with more immigrants.  Sampson looked at Chicago and found that Hispanic immigrants were far less likely to commit a violent criminal act then either black or white native Chicagoans.  Lee et al. found that trends in recent immigration are either not correlated with homicides or are negatively correlated in Miami, San Diego, and El Paso.  The only exception is that there is a positive relationship between immigration and black homicide rates in San Diego.

Numerous studies also conclude that the high immigration rate of the 1990s significantly contributed to the precipitous crime decline of that decade.  According to this theory, immigrants are less crime prone and have positive spillover effects like aiding in community redevelopment, rebuilding of local civil society in formerly decaying urban cores, and contributing to greater economic prosperity through pushing natives up the skills spectrum through complementary task specialization.

Note on Illegal Immigration

The public focus is on the crime rates of unauthorized or illegal immigrants.  The research papers above mostly include all immigrants regardless of legal status.  However, every problem with gathering data on immigrant criminality is multiplied for unauthorized immigrants.  There is some work that can help shed light here.

With particular implications for the murder of Kate Steinle, Hickman et al. look at the recidivism rates of 517 deportable and 780 nondeportable aliens released from the Los Angeles County Jail over a 30-day period in 2002.  They found that there is no difference in the rearrest rate of deportable and nondeportable immigrants released from incarceration at the same place and time.  Their paper is not entirely convincing for several reasons, the most important being that their sample does not include the higher risk inmates who were transferred to state prison and were subsequently released from there.  There are also findings in their paper that seem to contradict their conclusion that aren’t adequately accounted for.  This is only one study of one sample in one city but the results should be incorporated into any argument over sanctuary cities.

Conclusion

Both the Census-data driven studies and macro-level studies find that immigrants are less crime-prone than natives with some small potential exceptions.  There are numerous reasons why immigrant criminality is lower than native criminality.  One explanation is that immigrants who commit crimes can be deported and thus are punished more for criminal behavior, making them less likely to break the law.

Another explanation is that immigrants self-select for those willing to work rather than those willing to commit crimes.  According to this “healthy immigrant thesis,” motivated and ambitious foreigners are more likely to immigrate and those folks are less likely to be criminals. This could explain why immigrants are less likely to engage in “anti-social” behaviors than natives despite having lower incomes.  It’s also possible that more effective interior immigration enforcement is catching and deporting unlawful immigrants who are more likely to be criminals before they have a chance to be incarcerated.

The above research is a vital and missing component in the debate over the supposed links between immigration and crime.

Alex Nowrasteh is the immigration policy analyst at the Cato Institute’s Center for Global Liberty and Prosperity. His popular publications have appeared in the Wall Street JournalUSA Today, the Washington PostHouston Chronicle, the Los Angeles Times, the New York Post, and elsewhere. His academic publications have appeared in the Journal of Economic Behavior and Organization, the Fletcher Security Review, and Public Choice. Alex has appeared on Fox News, Bloomberg, and numerous television and radio stations across the United States. He is the coauthor, with Mark Krikorian of the Center for Immigration Studies, of the booklet Open Immigration: Yea & Nay (Encounter Broadsides, 2014).

He is a native of Southern California and received his Bachelor of Arts in economics from George Mason University and Master of Science in economic history from the London School of Economics.

This work by Cato Institute is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

Immigration to the United States from 1870 to 1920 (2004) – Essay by G. Stolyarov II

Immigration to the United States from 1870 to 1920 (2004) – Essay by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
July 21, 2014
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Note from the Author: This essay was originally written in 2004 and published in six parts on Associated Content (subsequently, Yahoo! Voices) in 2007.  The essay earned over 109,000 page views on Associated Content/Yahoo! Voices, and I seek to preserve it as a valuable resource for readers, subsequent to the imminent closure of Yahoo! Voices. Therefore, this essay is being published directly on The Rational Argumentator for the first time.  ***
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~ G. Stolyarov II, July 21, 2014
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An Overview of Immigration to the United States from 1870 to 1920

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From 1870 to 1920, immigrants came to America from all over the world and made irreplaceable contributions. Though frequently discriminated against, most immigrants fought through the difficult times and moved forward to build a better life for themselves. It was not an easy task, but immigrants had a drive to start anew and were determined to live the American Dream and complete the work that dream required.
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Emma Lazarus’s poem, “The New Colossus,” describes with remarkable accuracy some of the actual motives that immigrants had during the time that this poem was written to inaugurate the Statue of Liberty. Such a diverse influx of people had never occurred in US history prior to this time period. Immigrants arrived not only from northern and western European nations, such as Germany, France, and Ireland, but also from Italy, Eastern Europe, Canada, and the Far East. Their motives for seeking a new home were as varied as the places from which they had come.

Numerous immigrants were indeed “struggling to breathe free” as they faced religious and political persecution in their homelands. Jews in Russia were, for example, met with severe government-sanctioned anti-Semitism. The czar’s henchmen would often stage pogroms which destroyed what little property and security Russian Jews were allowed to have. In addition, the draft in Russia was merciless and would often take 25 years of a man’s life away to fight in fruitless wars with outdated weapons and brutal discipline. To many Jews and people in similar situations, America symbolized a place where their freedom of religion and occupation could be exercised to a greater extent than anywhere else in the world.

A large portion of immigrants originated from the rural areas of their home countries, and were especially hard-hit by agricultural troubles. Events all over the world much like potato blight in Ireland that triggered an earlier Irish mass migration led people to move away from densely populated and famine-wrecked countries to a more spacious and plentiful America. Many small farmers and craftsmen were unable to find jobs in their homelands, since their original occupations had been rendered obsolete by large-scale mechanized production while the skilled labor market was already too full for them in Europe.

In general, either the difficulties at home or the prospects in the U.S. were so immense as to compel immigrants to leave many belongings behind and expose themselves to an entirely different language and culture in the U.S. A large number did not intend for the change to be permanent; about three-tenths merely came to earn a large enough amount of money to return home in greater financial security. Yet, whatever their intent, the immigrants profoundly shaped America’s history, economy, and culture.

The Journey to America and Immigrant Processing Upon Arrival

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Many immigrants experienced journeys to the United States that were similar in numerous aspects. Conditions during the voyage and upon arrival had improved from prior eras, but were still uncomfortable and lacking in many respects.

The development of passenger vessels made the journey easier, cheaper, and faster for many immigrants. By the 1870s, steam powered ships replaced sailing ships. They were bigger, faster and safer. Immigrants in the early 1800s had to endure voyages averaging 40 days, depending on weather; by the 1900’s, the average voyage was only one week long.

In order to account for and regulate immigration, the US government established immigrant processing centers on both the East and West Coasts. 70% of the European immigrants beginning in 1855 would be dropped off at Castle Garden on Manhattan Island and pass a series of examinations. In 1892, a new immigrant center at Ellis Island was built to replace Castle Garden. On the West Coast, immigrants, mostly Chinese or Japanese, arrived through Seattle or Angel Island in San Francisco.

The increased convenience of immigration did not, however, imply a level of comfort for the immigrants anywhere near modern standards. Poor sanitation and food, as well as diseases such as cholera and typhus, were still common on the trans-Atlantic liners.

Immigrants who could only afford the minimal third-class fees of about $30 were referred to as “steerage passengers.” The name came from the part of the ship, the steerage, where they were kept and which provided the cheapest possible accommodations. It was crowded below deck, and steerage passengers were seldom allowed to go up for fresh air. The trans-Atlantic shipping companies had not yet learned to provide efficient basic services, such as food, and often fed passengers nothing but soup or stew, and sometimes bread, biscuits, or potatoes.

Many immigrants had to wash themselves with salt water while drinking stagnant water that was stored in dirty casks. At the root of these problems was a mindset on the part of many of the companies that considered the immigrants “human cargo.” These same companies would often ship American-made goods to Europe on the return trip, and could not yet see the essential distinction between transporting products and people. They would learn with time.

Even after the tough voyage, immigrants were not guaranteed entry to America. About 250,000 people (2% of all immigrants) were sent back home. 1st and 2nd class passengers were inspected on the ship, but 3rd class passengers had to go to Ellis or Angel Island for screening, waiting about three to five hours in line and undergoing inspections of both a medical and legal nature.

Officials at Ellis Island also did something that is not commonly done today. When they could not pronounce an immigrant’s name, the immigration inspectors thought that this gave them the prerogative to change the name to something less difficult. Names like “Andrjuljawierjus” might be simplified to “Andrews” or something similar.

How Immigrants Lived Upon Arriving in the United States

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From 1870 to 1920, most immigrants arriving in the United States found themselves facing current material poverty, but immense prospects for opportunity and enrichment. But how did they live in the meantime, as they endeavored to achieve the American Dream?

After arrival, immigrants spread themselves throughout the country. Most of them settled in cities, as it was easiest to find jobs there as well as locate persons of similar background or ideology to oneself and cooperate with them economically. Cities that served as the gateways to immigration also came to house many immigrants. In New York City in 1910, for example, three-fourths of the population consisted either of immigrants or children of immigrants.

For lack of abundant funds, many immigrants in large cities settled in mass tenement and apartment complexes that were affordable but often exhibited uncomfortable living conditions. Many rooms did not have windows, and were ten feet wide at most. Filth, dampness, and foul odors were common inconveniences. Yet for many immigrants, this was only a transitional stage in their lives, but still something unpleasant that left a mark on their experiences.

Many immigrants were able to persevere through initial hard times because of support and guidance from relatives. Immigrant families often served as the basic economic unit; they provided assistance to their members and pooled resources together.

The location of immigrants’ relatives would also often affect their destination. If an immigrant had an uncle or cousin in a particular neighborhood, he would be more likely to settle there himself and maintain close ties. Cooperative arrangements, such as boarding with relatives or native middle and working-class families were common transitional stages for many young immigrants.

But these useful ties did not in any way bog immigrants down in one place or one mode of life for a long time. Mobility was high: the families who inhabited a certain neighborhood were unlikely to still be there in 5 or 10 years. Though ethnic districts existed, most white immigrants lived in ethnically mixed neighborhoods, testifying to the fact that families served to spur on economic opportunity and change, rather than counteract it.

Due to productivity and prudence in saving a large portion of the money they earned, many of the new immigrants were able to quickly rise to middle-class status, and some even made vast fortunes during their lifetimes. While they endured initially unpleasant conditions, these immigrants ultimately saw such circumstances as stepping stones toward a better life than they could get anywhere else in the world.

Immigrant Contributions to American Life and Culture

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Immigration from 1870 to 1920 brought to the United States a vast quantity of both ordinary and extraordinary people: individuals who, through their search for greater opportunity and prosperity, dramatically altered and improved American life and culture.

Samuel Gompers, an immigrant from England, was head of the American Federation of Labor beginning in 1886. He advocated moderate labor reforms but was a staunch opponent of socialism and coercive action on the part of unions. His memoirs give an account of his own life and experiences as an immigrant.

Ironically, however, Gompers himself came to oppose the mass wave of immigration, which he perceived to threaten the workers of his union. Many of the nativist arguments that advocated restricting foreign immigration had come from him and his associates, despite the obvious double standard that this implied.

On the opposite side of the immigration debate was an immigrant from Germany, political cartoonist Thomas Nast. His cartoons in the magazine Harper’s Weekly ridiculed nativist sentiments and advocated fair treatment and equal rights for new arrivals to the country.

Some of the most famous and lasting contributions to American culture have been made by brilliant immigrants like the composer Irving Berlin from Russia. Two of his most famous hits were “God Bless America” and “White Christmas.”

During the first decade of the twentieth century, Frank Capra came to America from Italy as a little boy. He would grow up to be a six-time Oscar-winning director who would produce some of the best-known films of the 1930s, including “It’s a Wonderful Life” and “Mr. Smith Goes to Washington.”

It is important to keep in mind that, were it not for these individual immigrant innovators, American culture would not have attained some of its distinct elements. Rather than “invading” the American way of life, immigrants, in all spheres of activity, brought about great progress.

Though some immigrants were great creators and innovators, over half identified themselves as unskilled laborers or domestic workers upon arrival. They still had a role to play in the US economy.

Jobs were plentiful, and, especially in a society where living standards rose across the board, there were many jobs for which most natives were overqualified. Those jobs could be taken by immigrant workers, saving businesses money on wages while still giving those workers five or ten times what they would have received in their home countries.

Work in dry-cleaning stores, newsstands, grocery stores, and machine shops, attracted many new arrivals and served as a first step on their upward economic journey. So great was the need for people to operate these jobs, that many of the sparsely populated states actively worked to promote immigration by offering newcomers guaranteed jobs and land grants.

Immigrant Contributions to American Prosperity and Unjust Persecution of Immigrants by Nativists

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Immigrants from 1870 to 1920 made possible America’s economic growth and rise to prominence as a global power. Yet these newcomers also faced unjust persecution from nativists who sought the aid of government to stifle further immigration.

During the past two centuries, small businesses comprised over three-fourths of America’s economy. Small businesses were a sector most crucial and unique to America, as, with scant initial capital, any intelligent man with a profitable idea could quickly rise to financial security.

The small-business field was, without exaggeration, dominated by immigrants. In every U.S. census from 1880 onward, immigrants accounted for a greater percentage of small business owners than natives. These businesses greatly expanded the country’s productivity and job openings, creating jobs for immigrants and natives alike.

Moreover, immigration fueled industrialization. In 1910, foreign-born persons comprised about 53% of the national industrial labor force. So not only did immigrants carry the small business field; they played an indispensable role in large industries as well. One can say with certainty that America would not have reached the status of a global economic power in those days were it not for the contributions of immigrants.

Despite these overt contributions to American prosperity, immigrants encountered a great deal of political regulation and outright opposition from nativist groups allied with the legislature.

Not all legislation discouraged immigration; earlier bills, such as the Homestead Act of 1862 helped attract newcomers by promising anyone who would develop a plot of land in the West for five years ownership of that land. Many Europeans took advantage of this opportunity.

But on the Pacific coast, Chinese immigrants did not fare so well. Bigoted sentiments and laws that began during the Gold Rush era culminated in the Chinese Exclusion Act of 1882, wherein Chinese immigration was forbidden for ten years. This law would be renewed and rendered permanent in the twentieth century and would last until 1943. In 1890, the Federal Government assumed control of immigration, implying that it would be easier to establish nationwide controls for immigration and enforce any initiative that would restrict the inward flow of people.

A slight gain for immigrants, especially those of Asian descent, was the Supreme Court decision of United States v. Wong Kim Ark, in 1898. The Supreme Court ruled that children born in America of Asian parents must be granted citizenship. Denying this citizenship would violate the 14th Amendment clause that classified all persons born on American soil as citizens and would jeopardize the rights of native-born whites with immigrant parents.

The court realized that discriminating against some immigrants could easily be extrapolated to discrimination against large portions of the American population, and that immigrants and America were inseparably linked.

Yet the nativists who controlled the other two branches of the US government continued to push their exclusionist schemes. The Literacy Act of 1917 required arrivals to be literate in some language, therefore cutting off the flow of many of the unskilled and uneducated workers that would have otherwise taken the jobs that no one else wanted.

The death blow to immigration came in 1924, when the National Origins Act set a quota of 150,000 total immigrants per year, disproportionately distributed to England and Northern Europe, with few slots allotted to southern and Eastern Europe and none for Asians. The act ended mass immigration into the U.S. until its repeal in 1965.

Nativist Xenophobia and Persecution of Immigrants

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Immigrants to the United States from 1870 to 1920 were not always welcomed. Many faced unjust and even violent persecution from well-connected nativist groups, who often acted out of nothing more than ignorance and prejudice.

No one expressed and condemned the irrationality of the xenophobia exhibited by the nativist groups against immigrants more vividly than Thomas Nast. His cartoon, ironically titled, “Pacific Chivalry: Encouragement to Chinese Immigration,” portrays Nast’s response to some of the most extreme forms of racism and nativism in the country at the time.

Nast_Pacific_Chivalry

You see a California native whipping and pulling the hair of a defenseless Chinese immigrant. In the inscription in the background, you can barely see written some of the things that aid the abuser in his cruelty. The inscription reads: “Courts of justice closed to Chinese; extra taxes to Yellowjack.”

What does this cartoon suggest about the means that Chinese and many other immigrants had to resist invasions of their rights and dignity? They had just about no means whatsoever. Nast recognized that many of these productive and peace-loving individuals were barred from resisting their inferior condition by small, well-organized activist groups connected with the legislature and prepared to use all means necessary, from the law to vigilante violence, to damage the immigrants. The American people were not opposed to immigration, but many powerful and well-connected elites of the time were.

Indeed, the xenophobia against immigrants sometimes reached horrific extremes. There was substantial discrimination against the Chinese in terms of wages and employment conditions in the West, but this passage by historian John Higham refers to some of the more brutal attacks on their freedoms.

“No variety of anti-European sentiment has ever approached the violent extremes to which anti-Chinese agitation went in the 1870s and 1880s. Lynching, boycotts, and mass expulsions…harassed the Chinese.” (Higham 1963)

Of course, in order to make these actions seem more tolerable in their eyes, nativists tried to justify them by conceiving of Asian immigrants as inferior beings. They could back down somewhat and grant some degree of equality to foreign whites, but this would enable them to play a powerful race card which contained some vicious stereotypes. Anti-immigrant stereotypes were spread by many labor unionists, especially Samuel Gompers, who wrote that “both the intelligence and the prosperity of our working people are endangered by the present immigration. Cheap labor… ignorant labor…takes our jobs and cuts our wages.”

There are numerous fallacies in Gompers’s claims. Immigration creates jobs rather than destroying them. Immigrants did not steal jobs, but rather took work that few natives wanted. Half of immigrants were indeed unskilled, but the other half consisted of people just as, if not more than, educated and innovative than the native population. Indeed, without immigrants, American economic prosperity would have been cut by more than half.

It seems, however, that some debates in American history linger on for centuries. The immigration debate is one of them. Currently, as immigration restrictions in the past thirty years have been laxer than previously, we are experiencing a new massive influx of foreigners into this country. The benefits that these immigrants bring are even more obvious today than ever, but the nativists are still around to attempt to impose stricter quotas and border-control measures. They are often still guided by the same fallacious arguments about immigrants stealing jobs or polluting the country’s culture.

Novelist Stephen Vincent Benet offered a powerful response to nativism, relevant both during his time and today: “Remember that when you say, ‘I will have none of this exile and this stranger for his face is not like my face and his speech is strange,’ you have denied America with that word.”

Sources:

http://web.uccs.edu/~history/fall2000websites/hist153/immigrants.htm
http://www.bedfordstmartins.com/historymodules/modules/mod20/main.htm
http://immigrants.harpweek.com/
http://nimbus.mysticseaport.org/voyages/immigration-0.html
http://www.h-net.org/~shgape/bibs/immig.html
http://memory.loc.gov/learn/educators/workshop/european/wimmlink.html
http://dewey.chs.chico.k12.ca.us/bridging.html
http://www.edc.org/CCT/NDL/1998/institute/stan/immlinks.html
http://www.kn.pacbell.com/wired/fil/pages/listimmigratli.html
http://www.bcps.org/offices/lis/models/immigration/resources.html
http://www.pbs.org/newamericans/6.0/html/amimm_pp403.html
http://www.ailf.org/pubed/pe_celeb_historical.asp
http://www.bergen.org/AAST/Projects/Immigration/
http://memory.loc.gov/ammem/ndlpedu/features/timeline/riseind/immgnts/immgrnts.html
http://www.internationalchannel.com/education/ellis/process.html
http://memory.loc.gov/ammem/ndlpedu/features/immig/native_american3.html
http://mi.essortment.com/postcivilwarr_rrid.htm
http://dig.lib.niu.edu/civilwar/settlement.html
http://www.civilwarhome.com/irish.htm
http://www.marist.edu/summerscholars/97/modimm.htm
http://memory.loc.gov/learn/features/timeline/progress/immigrnt/immigrnt.html
http://memory.loc.gov/learn/features/timeline/riseind/immgnts/immgrnts.html
http://internet.ggu.edu/university_library/histimmi.html
http://www.historychannel.com/ellisisland/index2.html
http://www.archives.gov/publications/prologue/fall_2000_us_canada_immigration_records_1.html

History of the 1848-1853 California Gold Rush (2003) – Essay by G. Stolyarov II

History of the 1848-1853 California Gold Rush (2003) – Essay by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
July 20, 2014
******************************
Note from the Author: This essay was originally written in 2003 and published in six parts on Associated Content (subsequently, Yahoo! Voices) in 2007.  The essay earned over 43,500 page views on Associated Content/Yahoo! Voices, and I seek to preserve it as a valuable resource for readers, subsequent to the imminent closure of Yahoo! Voices. Therefore, this essay is being published directly on The Rational Argumentator for the first time.  ***
***
~ G. Stolyarov II, July 20, 2014
***

Background History of the California Gold Rush

***

The real story of the California Gold Rush has to be traced back to the Mexican War, which was fought from 1846 to 1848. The war started out as a dispute over Texas. However, under the Treaty of Guadalupe Hidalgo, America ended up not only with Texas, but also Nevada, Utah, Arizona and California.

During this time period, the country was expanding and its transportation improving. Once gold was discovered in California, waves of fortune-seekers, also known as 49ers (because they came during 1849), came from all over the world to California, thus drastically impacting both the economy and social life of California, which in turn impacted the rest of the nation. Even though few of the 49ers actually made a fortune from mining gold, many found other ways to earn a living, especially once the gold became scarce and xenophobia emerged. Nonetheless the incredible number and diversity of people who came to California seeking an easy fortune influenced Californian and American life.

John Sutter, on whose lands the gold discovery had occurred, moved to California from Switzerland in 1830 and obtained a property charter from the Mexican government. During this time, he established a fort at New Helvetia, at the junction of the American and Sacramento rivers. He strove to build an agricultural empire, but the gold discovery was the beginning of the downfall of his dream. Along with James Marshall, Sutter located gold at his mill in 1848.

It may seem odd that James Marshall and John Sutter were quite displeased upon testing the gold and confirming its identity. But Sutter was barely interested in profits to be made from the discovery; his original plan was to establish an agricultural powerhouse, and he stuck to it. He was afraid, however, that if news of the discovery leaked, his workers would abandon him and try to make a profit of their own from the gold fields. He also feared the competition over land and resources that would ensue if a massive rush of immigrants came to California to seek gold. Thus, he and Marshall agreed to keep the discovery secret until the mill’s completion, so that Sutter would retain the manpower necessary for the job.

Stories circulated the countryside within weeks. However, they were all too often dismissed as wild rumors, until they caught the ears of a new and ambitious Mormon immigrant, Samuel Brannan. Brannan immediately sensed immense riches in store from the potential gold boom, and keenly bought most of the picks, pans, and shovels in California at extremely low prices. Then, after he established a colossal stockpile, he ran through the streets of San Francisco, holding up gold, and shouting “Gold, gold in the American River!” He provided enough empirical evidence to be believed and trigger a massive inflow of immigrants as the news spread east. In just the next nine weeks, by selling mining equipment at prices far higher than his costs, he made $36,000.

Gold Seekers’ Journey Westward During the 1849 California Gold Rush

***

The journey westward during the 1849 California Gold Rush was an arduous ordeal for many. As news of the 1848 discovery at Sutter’s Mill spread, people all over the United States were allured by the prospect of gold, but the pathways from the population centers of the East Coast to California were few and arduous. Two essential choices for forty-niners, the first wave of Gold Rush immigration in 1849 were an overland journey across the 2000 mile stretch of yet unsettled land in between, or a sea route around Cape Horn in South America.

The sea route, preferred by gold seekers from the Eastern states, would often take about six months. It was not a pleasant journey, either. Seasickness and spoilage of food and water were omnipresent.

Some time later, a third route was thought up, though not any less perilous than the other two. Migrants sailed as far south as Panama, disembarked, then made 3-day trip by mule and canoe across land to the Pacific side, where they boarded another ship. Tropical diseases in that part of the world were devastating. Malaria and cholera claimed many lives. Lieutenant Ulysses S. Grant, when journeying to California in 1852, wrote that a third of his regiment was killed or incapacitated by these afflictions. To add to the problems, ships to ferry the immigrants up to San Francisco were rare, and the travelers would often end up being stranded in Panama for months.

Over land, a favorite route of immigrants from the Central states was the Oregon-California Trail, a well-worn path carved out several years earlier by fur trappers. This overland road much shorter than the sea route, but not faster. Its travelers would go for six months by covered wagon through desolate landscapes with scarce supplies of water. The Native Americans along the way, whom many xenophobic settlers initially feared, actually turned out to be helpful, providing supplies, information, and guides. The occasional entrepreneur in the area would also capitalize on the scarcity of water by selling it at prices as high as $100 per drink. Supply and demand worked even in the desert.

Because travelers reached California successfully did not imply that their journey was over. Gold was further inland near Placerville, far from the port of San Francisco where the ships docked. Some travelers were also repulsed upon reaching San Francisco by the sight of numerous bars, gambling places, and saloons, all sites of licentious life that had been taboo in the East. Additionally, many immigrants explored the Sacramento River and its delta for new gold sites to mine.

Key Figures in the California Gold Rush: John Sutter, Richard Barnes Mason, William T. Sherman, and Ulysses S. Grant

***

The 1849 California Gold Rush was a magnet for ambitious personalities: individuals who would later rise to extraordinary heights in American politics, military, and economic life. The Gold Rush ruined the great landowner John Sutter but served as a testing ground for Richard Barnes Mason, Ulysses S. Grant, and William T. Sherman.

John Sutter was, as he had predicted, economically destroyed by the inpouring of gold seekers into California. His ambitions for an expansive enterprise were ruined by the desertion of his laborers and by squatters overrunning his lands after the discovery of gold. Sutter never extensively attempted to benefit from the Gold Rush, except for one half-hearted expedition which he abandoned almost upon arriving at the gold fields. His losses were never officially compensated.

Another key person in Gold Rush history was Colonel, later General, Richard Barnes Mason, who served as the fifth military governor of California from 1847 to 1849. Governors were changed with extreme rapidity during that time period, but Mason served on his post the longest. He was an astute observer who toured the gold fields with his assistant, Lieutenant William Tecumseh Sherman, and reported to Washington first-hand observations of the social and economic conditions in the state. His writings are an excellent primary source for understanding the Gold Rush phenomenon.

Sherman, the Sherman who would become an infamous Civil War general, wrote down his observations in his memoirs. Quite unexpectedly, he became a banker for Lucas, Turner & Co. in September of 1853, and oversaw construction of “Sherman’s Bank,” a building so durable and finely engineered that it still stands in California today.

The California Gold Rush seemed to be a magnet for future great generals. Ulysses Grant, upon arriving in California, also wrote detailed notes for his memoirs. His own experiences however, were not to be as glorious as his later life. Grant struck a deal with his troops to start a potato growing business, which failed miserably.

Grant’s financial failure happened because hundreds of other entrepreneurs got the same idea at the same time. So many potatoes were grown that season that everybody had enough for themselves, and no one wanted to buy any. So Grant and his troops ended up eating a lot of what they grew and letting the rest rot away. As for Grant himself, put simply, he had a drinking problem, which would notoriously feature in his later life. In 1853, he was discharged from his regiment and sent home, though he conveniently omits this fact from his accounts.

Economic and Cultural Leaders During the 1849 California Gold Rush

***

A number of America’s future economic and cultural leaders began their rise to prominence during the 1849 California Gold Rush. Among them were such individuals as Mark Twain, Sam Brannan, Levi Strauss, Phillip Armour, John Studebaker, Henry Wells, and William Fargo.

The Gold Rush was the proving ground for Samuel Clemens, the future Mark Twain. He came to California as an absolute unknown and took a job at the San Francisco Call, one of the two newspapers in the city at the time. He distinguished himself before the world in a rather unorthodox manner, writing a story about a local frog-jumping contest.

As for Sam Brannan, the great businessman who first spread news of gold’s discovery in California, he became the richest man in California without once mining the gold himself. He outmaneuvered the market many times through his publicity skills and adept purchases, eventually owning much of downtown San Francisco and even printing his own currency. Brannan was also disgusted with some of the racist, nativist miners’ oppression of foreigners and new arrivals in the state. He often broke up ethnic clashes and defended the rights of immigrants against the typically racist-slanted legislature. Why did Brannan care about the plight of working immigrants? The simplest answer is that foreigners were a large portion of his customer base, and the more miners were in the business, the more Brannan would profit. The market, and its most skilled representatives, are blind to irrational prejudices of race and nationality.

Levi Strauss, the future inventor of blue jeans, was known during the Gold Rush as a dry goods salesman and tent maker. In 1853, he made what he called “canvas pants” out of tent fabric especially for miners. These gained widespread popularity and earned Strauss a fortune.

Another great businessman who got started during the Gold Rush was Phillip Armour, who came to Placerville, California and opened a meat market there. Later, he moved back to Indiana with his profits and founded the gargantuan Armour Meat Packing Company.

Moreover, John Studebaker, a wagon manufacturer, established a firm in California to provide transportation to Oregon pioneers. It would expand to become a major car producer during the first half of the twentieth century.

Finally, Henry Wells and William Fargo offered a stable, honest banking, transportation, and mail delivery system to miners, something that the uncertainty-faced miners desperately needed. Their venture would also soon expand to a nationwide level.

California’s Colossal Economic Growth During the 1849 Gold Rush

***

The economy of California grew at a phenomenal rate during the days of the 1849 Gold Rush. Much of this growth was made possible by the laissez-faire economic policies of Governor Richard Barnes Mason.

Prices rose dramatically as more people found gold and gold became widely circulated on the market. Seeing that customers would afford it, merchants raised their fees on all sorts of commodities, from real estate to food to transportation. A miner in California may have made about six to ten times as much as his eastern counterpart, but he also had to pay about that many times more for his upkeep.

The following concrete illustration of this trend is useful: a plot of San Francisco real estate that cost $16 in 1847, sold for $45,000 just 18 months later. Imagine investing in real estate during that time period.

The city of San Francisco grew from an isolated village to a thriving city in the five or so years of the Gold Rush. Its population rose from 1000 in 1848 to 35000 in 1850. This contributed dramatically to California’s admission to the Union as a state in 1850. 30 new houses and 2 new murders came about every day. Theaters and newspapers were built and prospered, and eventually only London would have more newspapers than San Francisco. Wages rose with the general standard of living, and great economic expansion and demand for jobs made employment readily available.

The California agricultural boom was another significant economic result of the Gold Rush. Many of the forty-niners and later immigrants contributed to the growing demand for food. Initially, this was satisfied by imports from merchants as far away as Chile or as nearby as Oregon. However, gradually the capacity was developed to grow the food in California itself. Machines were imported into the country to equip an efficient farming industry, and eventually wheat was exported from California to other parts of the U.S.

This phenomenal economic growth was made possible by Governor Richard Barnes Mason’s laissez-faire approach to the economy. Mason recalled of his administration: “I resolved not to interfere, but permit all to work freely, unless broils and crimes should call for interference.”

During the military period, when California’s future within the United States was still uncertain, as it was not yet a state, and governments changed with great frequency, no political factions could emerge to attempt to regulate and restrict the economy. The courts were based on the Anglo-Saxon model, which stressed property rights and the rights of the accused, though occasional acts of “vigilante justice” did occur. The government was highly limited and mainly acted as a second line of defense against crime. People fended for themselves mostly, and did surprisingly well. Unlike the cities, in the mining camps, crime rates were extremely low, lower than even in the relatively peaceful Eastern cities, mainly because almost every miner owned a gun. The principle of “more guns, less crime” was clearly demonstrated there.

Immigration to California During the 1849 Gold Rush

***

The Gold Rush resulted in massive foreign immigration to California from virtually every area of Europe, Asia, and the Pacific. At first, immigrants were accepted by almost everyone, as land, gold, and other resources were plentiful. As those resources became less abundant, however, a minority of white racists played on miners’ fears of foreign competition and came to dominate the legislature, setting up barriers to foreign immigrants. While some immigrants left, many others persisted, and set the stage for the vast cultural diversity seen in California today.

During the 1849 Gold Rush, California’s government was tolerant toward all immigrants under the laissez-faire military administration of Richard Barnes Mason. But as soon as the civilian legislature came along in 1850, a minority of racist white miners, who feared competition with foreign immigrants, influenced the government to abandon laissez-faire and institute the Foreign Miners Tax.

This $20 monthly fee from every foreign miner was intended to “protect” American miners from foreign competition. It was a disaster and was repealed a year later, as many foreign miners quit their careers and crowded the cities, jobless and penniless. Some did not give up and spread into other fields of business, having thus defended their individual rights against the bigoted government.

Mexicans had comprised much of California’s population before the Mexican War. The war unseated them from a dominant social position and many came to the mines, seeking to regain lost wealth and status. Tensions between Mexican miners and racist/nativist interests escalated into the 1850s. An example would be the attempt by racist miners, supported by politicians from the East, to drive Mexicans out of the Calaveras and Tuolumne counties where the Mexican miners had claimed land.

The Chinese migrants to California would shape the state extensively. Once again, the Chinese encountered animosity from racist miners and the legislature. Nevertheless, their industry and persistence enabled them to find jobs as cooks, cigar makers, restaurateurs, vegetable farmers, fortune tellers, and merchants, found temples, gambling halls, theaters, and laundries, and become key contributors to the agricultural boom. Many of them planted crops or built levees.

Women and African Americans also found a new home and opportunities in Gold Rush California. In both conventional and unconventional economic roles, they defied constricting Eastern stereotypes and met with great financial success. As for African-Americans, though many came as slaves, they bought freedom with gold and those already free used gold to free families, fight discrimination and start newspapers, schools, and churches. Upon its admission to the Union, so many were free and economically active that slavery was prohibited in the state.

Sources Used

Chevez, Ken. Part Three: State’s Latinos Lost in the Rush. 1/18/98. Sacramento Bee. October 2003 <http://www.calgoldrush.com/part3/03mexicans.html>

Discovery Of Gold By John A. Sutter. 2003. Virtual Museum Of The City Of San Fransisco. October 2003 <http://www.sfmuseum.org/hist2/gold.html>

Discovery Of Gold Report Of Colonell Mason. 2003. Virtual Museum Of The City Of San Fransisco. October 2003 < http://www.sfmuseum.net/hist6/masonrpt.html>

Gen. William Tecumseh Sherman. 2003. Virtual Museum Of The City Of San Fransisco. October 2003 <http://www.sfmuseum.net/bio/sherman.html>

Gold Fever Discovery. 1998. Oakland Museum of California. October 2003
<http://www.museumca.org/goldrush/fever05.html>

Gold Fever Entertainment. 1998. Oakland Museum of California. October 2003
<http://www.museumca.org/goldrush/fever18.html>

Gold Rush And Anti-Chinese Race Hatred. 2003. Virtual Museum Of The City Of San Fransisco. October 2003 <http://www.sfmuseum.net/hist6/chinhate.html>

Gold Rush: Gold Country. 2003. Idaho State University.
October 2003 <http://www.isu.edu/~trinmich/goldcountry.html>

Hoge, Patrick. Part Three: Justice Wasn’t Pretty- But It Was Quick. 1/18/98. Sacramento Bee. October 2003 <http://www.calgoldrush.com/part3/03justice.html>

Lieutenant Ulysses S. Grant And The Gold Rush. 2003. Virtual Museum Of The City Of San Fransisco. October 2003 < http://www.sfmuseum.net/hist6/shermgold.html>

Magagnini, Steven. Part Three: Chinese Transformed
Gold Mountain. 1/18/98. Sacramento Bee. October 2003
<http://www.calgoldrush.com/part3/03asians.html>

Magagnini, Steven. Part Three: Fortune Smiled on Many Black Miners. 1/18/98. Sacramento Bee. October 2003 <http://www.calgoldrush.com/part3/03blacks.html>

Magagnini, Steven. Part Three: Indian’s Misfortune Was Stamped In Gold. 1/18/98. Sacramento Bee. October 2003 <http://www.calgoldrush.com/part3/03native.html>

Perkins, Kathryn Doré. Part Three: ‘Real Women’ Who Defied Stereotype. 1/18/98. Sacramento Bee. October 2003 <http://www.calgoldrush.com/part3/03women.html>

The Gold Rush: Collision Of Cultures. 2003. PBS. October 2003 <http://www.pbs.org/goldrush/collision.html>

The Gold Rush: Journey. 2003. PBS. October 2003 <http://www.pbs.org/goldrush/journey.html>

William T. Sherman And The Gold Rush. 2003. Virtual Museum Of The City Of San Fransisco. October 2003 <http://www.sfmuseum.net/hist6/shermgold.html>

America: Gone West. Cooke, Alistair. BBC/Time-Life Television, 1973.

French Cartoon. 2003. Oakland Museum of California. October 2003 <http://www.museumca.org/goldrush/curriculum/4g/42103011.html>

How the Drug War Drives Child Migrants to the US Border – Article by Mark Thornton

How the Drug War Drives Child Migrants to the US Border – Article by Mark Thornton

The New Renaissance Hat
Mark Thornton
July 20, 2014
******************************

Most attentive parents today rarely allow their children to go unsupervised, particularly in public. It starts with the wireless baby monitor for the crib and ends with the ever-present cell phone at college graduation.

This is what makes reports from the US-Mexican border so perplexing to most Americans. It is hard to believe that parents would send their children, even young children, to travel many hundreds of miles, up to 1,600 miles without guardianship, or under the control of “mules” who guide the children with the hope of a safe voyage to the United States.

The journey is both harsh and dangerous. The northern regions of Central America (i.e., Guatemala, Honduras, and El Salvador) and Mexico are some of the most dangerous areas of the world. The climate can be harsh, roads and travel conditions are mostly poor, and the children are subjected to robbers, kidnappers, rapists, government police and soldiers, drug cartel members, and bandits of all sorts.

As unbelievable as it seems, Central American parents are sending their children, or more often asking their children to join with them in the United States, in large numbers. In many cases the children flee on their own accord without any guardian.

A decade ago US Border Patrol agents apprehended only several hundred unaccompanied children per year. Over the last nine months they have caught nearly 50,000. Official estimates project the capture rate to reach 10,000 per month by this fall. Those numbers actually hide the enormity of the problem because historically the problem was largely restricted to Mexican children who could be immediately returned to Mexico. During the last couple of years, the majority of growth has come from children from Central American countries and these must be processed and turned over to the Office of Refugee Resettlement (part of HHS).

One suggested reason for the explosion of child immigrants from Central America is the perception and rumors that children from Central America who cross the border will receive a “proviso” which might suggest a permit to stay in the US legally. However, it seems that the proviso is really just a notice to appear in immigration court for deportation proceedings. Whether this gives the children more time in the US, or whether it increases the probability of them being allowed to stay in the US for humanitarian reasons is unclear. In one report, only 1 of 404 children specifically mentioned the possibility of benefiting from US immigration reform.[1]

Even if the proviso rumor was having an impact, it does not explain why the children and their parents would risk such a dangerous journey in the first place.

The Role of the Drug War

The underlying cause for this mass dangerous migration is the US’s war on drugs. Central American countries have become the conduit by which illegal drugs move from South America across the US border. Unlike conventional media sources, who will sometimes vaguely mention violence and instability in Central America as a cause, The Economist [2] quite correctly found the source of the problem in America’s war on drugs:

Demand for cocaine in the United States (which, unlike that in Europe, is fed through Central America), combined with the ultimately futile war on drugs, has led to the upsurge in violence. It is American consumers who are financing the drug gangs and, to a large extent, American gun merchants who are arming them. So failing American policies help beget failed states in the neighbourhood.

The result has been that the drug cartels have a great deal of control over much of northern Central America. The cartels control the governments, judges, police forces, and even some prisons and some of the military through a combination of bribery, threats, and outright force.

As a consequence of this control drug gangs and cartels can operate in the open or they can operate deep within the jungle beyond the reach of the law. In turn, the drug cartels can act above the law and as a result they have created a culture of violence, building on the civil wars of previous decades.

The countries in the northern Central American region, Guatemala, Honduras, and El Salvador, have the highest murder rate of any region in the world. The region’s murder rate is 7.5 times the murder rate of the North American region.

Globally, the top murder rate in any given year since the 1990s has been Honduras or El Salvador. In 2012, nearly 1 out of every 1,000 citizens in Honduras was murdered. In addition to murder, there are high rates of other types of violence, crime, and intimidation. A very large percentage of the entire Salvadoran-born population has migrated, mostly to the United States.

In addition to violence, the war on drugs has been a disruptive force for the Central American economies. After reading about the region, is anyone likely to make travel plans to go there, or to consider opening a business there? Obviously, the war on drugs has been highly disruptive for job creation, commerce, and international investment outside the drug cartels themselves. Therefore it would be more correct to say that it is not so much the attraction of opportunities in the US, but the lack of and reduction in opportunities in Central America that are spurring emigration, and that this is directly linked to the war on drugs.

When you try to make sense of parents sending their children on such a dangerous undertaking, just remember it is just another despicable result of the war on drugs with few solutions.

The Economist recommends the repeal of the war on drugs and the legalization of drugs globally as the solution. Its second best solution is for the United States to finance an effort to rebuild the institutions (i.e., police, courts, prisons, etc.) and infrastructure (i.e., military, transportation, and education systems) in the countries of Central America:

Such schemes will not, however, solve the fundamental problem: that as long as drugs that people want to consume are prohibited, and therefore provided by criminals, driving the trade out of one bloodstained area will only push it into some other godforsaken place. But unless and until drugs are legalised, that is the best Central America can hope to do.

In other words, ending the war on drugs is the only solution.

Notes

[1] http://www.unhcrwashington.org/children/reports, p. 31.

[2] “The drug war hits Central America: Organised crime is moving south from Mexico into a bunch of small countries far too weak to deal with it,” The Economist, April 14, 2011.

Mark Thornton is a senior resident fellow at the Ludwig von Mises Institute in Auburn, Alabama, and is the book review editor for the Quarterly Journal of Austrian Economics. He is the author of The Economics of Prohibition, coauthor of Tariffs, Blockades, and Inflation: The Economics of the Civil War, and the editor of The Quotable Mises, The Bastiat Collection, and An Essay on Economic Theory. Send him mail. See Mark Thornton’s article archives.

This article was published on Mises.org and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

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.
If You Like the Surveillance State, You’ll Love E-Verify – Article by Ron Paul

If You Like the Surveillance State, You’ll Love E-Verify – Article by Ron Paul

The New Renaissance Hat
Ron Paul
June 30, 2013
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From massive NSA spying, to IRS targeting of the administration’s political opponents, to collection and sharing of our healthcare information as part of Obamacare, it seems every day we learn of another assault on our privacy. Sadly, this week the Senate took another significant, if little-noticed, step toward creating an authoritarian surveillance state. Buried in the immigration bill is a national identification system called mandatory E-Verify.

The Senate did not spend much time discussing E-Verify, and what little discussion took place was mostly bipartisan praise for its effectiveness as a tool for preventing illegal immigrants from obtaining employment. It is a tragedy that mandatory E-Verify is not receiving more attention, as it will impact nearly every American’s privacy and liberty.

The mandatory E-Verify system requires Americans to carry a “tamper-proof” Social Security card. Before they can legally begin a job, American citizens will have to show the card to their prospective employers, who will then have to verify their identity and eligibility to hold a job in the US by running the information through the newly created federal E-Verify database. The database will contain photographs taken from passport files and state driver’s licenses. The law gives federal bureaucrats broad discretion in adding other “biometric” identifiers to the database. It also gives the bureaucracy broad authority to determine what features the “tamper-proof” card should contain.

Regardless of one’s views on immigration, the idea that we should have to ask permission from the federal government before taking a job ought to be offensive to all Americans. Under this system, many Americans will be denied the opportunity for work. The E-Verify database will falsely identify thousands as “ineligible,” forcing many to lose job opportunities while challenging government computer inaccuracies. E-Verify will also impose additional compliance costs on American businesses, at a time when they are struggling with Obamacare implementation and other regulations.

According to David Bier of Competitive Enterprise Institute, there is nothing stopping the use of E-Verify for purposes unrelated to work verification, and these expanded uses could be authorized by agency rule-making or executive order. So it is not inconceivable that, should this bill pass, the day may come when you are not be able to board an airplane or exercise your Second Amendment rights without being run through the E-Verify database. It is not outside the realm of possibility that the personal healthcare information that will soon be collected by the IRS and shared with other federal agencies as part of Obamacare will also be linked to the E-Verify system.

Those who dismiss these concerns as paranoid should consider that the same charges were leveled at those who warned that the PATRIOT Act could lead to the government collecting our phone records and spying on our Internet usage. Just as the PATRIOT Act was only supposed to be used against terrorists but is now used to bypass constitutional protections in matters having noting to do with terrorism or national security, the national ID/mandatory E-Verify database will not only be used to prevent illegal immigrants from gaining employment. Instead, it will eventually be used as another tool to monitor and control the American people.

The recent revelations of the extent of National Security Agency (NSA) spying on Americans, plus recent stories of IRS targeting Tea Party and similar groups for special scrutiny, demonstrates the dangers of trusting government with this type of power. Creation of a federal database with photos and possibly other “biometric” information about American citizens is a great leap forward for the surveillance state. All Americans who still care about limited government and individual liberty should strongly oppose E-Verify.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission.

Election Analysis: “Show Me Your Papers!” – Article by Charles N. Steele

Election Analysis: “Show Me Your Papers!” – Article by Charles N. Steele

The New Renaissance Hat
Charles N. Steele
November 11, 2012
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In my haste to let the religious right have it, I missed something important that suggests the GOP problem is deeper than just religious nuttery: the GOP has systematically refused to address immigration issues seriously.  Worse, they’ve adopted nativist hostility to immigrants and treat immigration as purely a law enforcement issue, one in which “suspicious-looking people” need to be ready to show their papers at any point.
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Hispanics voted almost 3 to 1 for Obama over Romney.  Anyone surprised by this wasn’t paying attention.  In a number of Republican forums this past year Hispanic politicians and party activists — all GOP members — voiced frustration that the primary campaigns were making it difficult for them to feel they had a place in the party.  Recall that the one and only intelligent thing Rick Perry said in his entire campaign was that children of illegal immigrants ought to be able to attend college at in-state tuition rates, since it was better that they be educated and productive rather than welfare cases.  It’s also the only thing for which conservatives raked him over the coals.
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Hispanics are about one sixth of the U.S. population and account for more than 50% of population growth.  Good luck selling them on the idea that Spanish accents and not-quite-white skin are cause for further police inquiries.

In fact, illegal immigration ought to be something conservatives support.  The primary reason people enter the country illegally is to work. Serious academic work dating at least to Julian Simon’s excellent book (available here for free!) have found that immigration, including illegal immigration, is on net beneficial for an economy.  Immigrants work harder and take less in government benefits.  Their work raises wages for non-immigrants.  They have higher rates of entrepreneurial activity.  In the recent financial crisis, illegal immigrants who were subprime borrowers had far lower rates of mortgage default than citizen subprime borrowers.  One would suppose that these would be the sort of people one would want to welcome, not drive away.  One would think these people would be prime constituents for a free-market message.

Certainly there are problems of crime, of crowding of public services, etc., associated with immigration, but many of these are at heart problems of the welfare state, rather than immigration.  Fixing these makes sense; fixating on immigration doesn’t.

If the nativists got everything they wanted on immigration — iron control over impervious borders, strict limits on who can enter, and deportation of 100% of all illegals — no important economic or social problem would be solved and the economic situation would be worse, not better.  But this wish list is impossible; economic forces cannot be legislated away, and neither can the human spirit.

The current Republican position on this issue is best described as stupidity, and one more reason they drove away potential voters.

Dr. Charles N. Steele is the Herman and Suzanne Dettwiler Chair in Economics and Associate Professor at Hillsdale College in Hillsdale, Michigan. His research interests include economics of transition and institutional change, economics of uncertainty, and health economics.  He received his Ph.D. from New York University in 1997, and has subsequently taught economics at the graduate and undergraduate levels in China, the Russian Federation, Ukraine, and the United States.  He has also worked as a private consultant in insurance design and review.

Dr. Steele also maintains a blog, Unforeseen Contingencies.

Review of Mark Krikorian’s “The New Case Against Immigration: Both Legal and Illegal” – Article by Daniel Griswold

Review of Mark Krikorian’s “The New Case Against Immigration: Both Legal and Illegal” – Article by Daniel Griswold

The New Renaissance Hat
Daniel Griswold
August 3, 2012
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Published by: Sentinel • Year: 2008 • Price: $25.95 hardcover and e-book • Pages: 304
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In his new book Mark Krikorian of the Center for Immigration Studies argues that immigration may have been good for America a century ago but not today—not because the immigrants have changed but because our nation has changed.

That’s an interesting thesis, but as the book unfolds, the arguments sound more and more familiar. Krikorian argues that immigrants at current numbers can’t be assimilated and that “mass immigration” jeopardizes national sovereignty and security, our quality of life, our jobs, wages, and wallets.

Despite his avowed goodwill toward immigrants, Krikorian’s book is a polemic written to paint immigration in the worst possible light. The word immigration hardly ever appears without the modifier “mass” before it, even though the immigration rate today is far lower than a century ago. He dismisses efforts in Congress to legalize low-skilled immigration as “amnesty” legislation, even though the proposals would have imposed fines, probation, and security checks. He also ignores important findings in the immigration literature for the sake of advancing his argument.

Krikorian’s worries about assimilation are nothing new and carry no more weight today than similar worries about the Italians, Poles, Irish, and Germans in past eras. Government promotion of multiculturalism and bilingual education don’t help assimilation, but they are not the insurmountable hurdles that Krikorian paints: Studies show second- and third-generation immigrants are almost all fluent in English.

The book is at its xenophobic worst in the chapters on sovereignty and security. Krikorian warns that “Mexico City is moving to being, in effect, a second federal government that American mayors and governors must answer to . . . becoming a permanent participant in the day-to-day business of governance, [exercising] joint dominion” over American territory. As evidence for “this assault on American sovereignty” he mostly just musters quotes from Mexican officials urging the U.S. government to reform its immigration system.

That’s only the beginning. While just about everybody recognizes that radical Islam is the most likely source of future terrorist activity against the United States, Krikorian is eager to bring every immigrant group under equal suspicion. In a section titled “Future Wars,” the author manages to slander millions of normal, peaceful, hardworking immigrants from China, Korea, and Colombia. “Though the nearly 700,000 Korean immigrants here came from South Korea, there can be little doubt that the Communist regime in the north has a network of agents already in place among them,” he writes, casting unwarranted suspicion on the corner grocer in Brooklyn and the worshippers at the Korean Central Presbyterian Church down the road from where I live in northern Virginia. In the same vein, Krikorian writes, “War with China is by no means a certainty, but it is clearly possible, and the nearly 1.9 million Chinese immigrants throughout the United States, including a major presence in high-tech industries, represent a deep sea for Beijing’s fish to swim in.” Is this really a valid argument for turning away immigrants such as Taiwan-born Jerry Wang, cofounder of Yahoo!, or Beijing-born Liang Qiao, the Iowa-based coach of the American Olympic gymnast Shawn Johnson?

Turning to jobs and wages, Krikorian sounds like a class-warfare “liberal.” “Mass immigration affects society as a whole by swelling the ranks of the poor, thinning out the middle class, and transferring wealth to the already wealthy,” he asserts. The facts say otherwise. Studies show that immigration benefits the large majority of Americans, not just the wealthy. The middle class has not been thinning out but moving up: The shares of households earning below $35,000 a year and between $35,000 and $100,000 have both declined in the past 20 years as the share earning above $100,000 has grown. Fewer Americans were living under the poverty line in 2006 than in 1994, and the poverty rate has actually been trending down in the past 15 years—a time of robust immigration.

It is true that low-skilled immigrants consume more in government services than they pay in taxes, as Krikorian argues at length. But he dismisses the practicality of limiting access to welfare while glossing over the fact that the average immigrant and his or her descendents generate a sizeable net fiscal surplus for the government.

In the final chapter Krikorian advocates deep cuts in legal immigration and a sweeping crackdown on illegal immigration. Among his preferred coercive tools would be a national database of all U.S. workers, native and immigrant alike; uniform national ID documents; enlisting local law enforcement officers in pursuit of illegal immigrants; and even barring private property owners from renting to people without the right documents.

There are plenty of thoughtful questions to be considered when it comes to the role of immigration in a free, modern, and globally connected society. Unfortunately, this book brings nothing new to the discussion.

Daniel Griswold is director of the Center for Trade Policy Studies at the Cato 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.

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.