The Entrepreneurial View #462
The Immigration Tightrope
by Raymond J. Keating
Rather than dealing with immigration reform in a straightforward, comprehensive manner, too many politicians have turned the issue into a tightrope walk usually seen at the circus. That is the case in Congress and out on the presidential campaign trail.
Most people seem to believe that the government needs to do a far better job at controlling and securing the nation's borders. Given national security concerns, that makes sense.
Where the issue apparently gets tricky for some elected officials is what to do about the estimated 12 million illegal immigrants in the country, and whether or not to establish and expand efficient avenues for legal immigration in order to meet the labor demands of consumers and businesses.
Do the politicians pander to the small, but vocal anti-immigration forces that advocate an enforcement-only response, and ignore the fact that most immigrants (legal or illegal) come here for a better life and to make positive contributions to our economy? There's also the political question of pandering to anti-immigration groups, while trying not to anger the fast-growing Latino population in the U.S.
In Congress, Republican Rep. Brian Bilbray (CA), Democratic Rep. Heath Shuler (NC), and Senator Mark Pryor, also a Democrat, have come together in bipartisan fashion to offer an enforcement-only measure called the Secure America through Verification and Enforcement Act (HR 4088 and S.2368).
In addition to measures meant to beef up border security, the bill places added responsibilities for verification and enforcement on the backs of business. Millions of businesses would have to rely on untested, flawed federal government databases to verify their workforce. Employers would face higher costs, lost workers that they have trained, potential lawsuits, and penalties and higher taxes if failing to comply. Of course, the bill does nothing in terms of dealing with the economics of immigration.
Pandering and ignoring reality on immigration also permeate the presidential campaign trail, particularly among Republicans. Most of the GOP candidates seem content with talking tough about border enforcement and booting out some or all of the undocumented workers in the country now. In particular, former Arkansas Governor Mike Huckabee, former New York City Mayor Rudy Giuliani and former Massachusetts Governor Mitt Romney have changed their tunes on immigration, becoming far more anti-immigration. In fact, the only GOP candidate who has remained rather consistent in his support for comprehensive immigration reform is Senator John McCain (AZ).
In the end, an enforcement-only strategy simply will not work because it flies in the face of the economics driving so much of this issue. It fails to deal with U.S. labor needs in terms of both unskilled and skilled workers. Just look at the recent numbers. On April 25, the U.S. Bureau of Labor Statistics released a report on the labor force characteristics of foreign-born workers in 2006. Key points from the data:
• Foreign-born workers increased from 14.8% of the labor force in 2005 to 15.3% in 2006.
• Foreign-born workers accounted for 52.5% of the 2.1 million increase in the labor force between 2005 and 2006. From 2000 to 2006, foreign-born workers made up 47.3% of the increase in the labor force.
• Foreign-born workers accounted for 44.6% of the 2.7 million increase in employment from 2005 to 2006.
• The labor force participation rate among the foreign born was 68.6%, versus 65.8% among the native born.
• The employment ratio among the foreign born in 2006 was 65.9%, versus 62.6% among the native born.
• Also, the unemployment rate among the foreign born was 4.0% in 2006, versus 4.7% for native born.
This has been the general trend in the U.S. for some time now.
Economics, human decency, national security, and our nation's immigrant history dictate that comprehensive immigration reform - or what some now call an "enforcement plus assimilation" policy approach - is needed. Beef up border security; open up a path to legalization and citizenship for undocumented workers who are not criminals, are willing pay some kind of fines and/or taxes and learn English; and expand legal avenues for immigration.
That's what the nation needs on the immigration front, and interestingly, most polls show strong majorities favor this option. Now, we just need the politicians to get in sync with most of the people.
Given the importance of immigration to our nation's economy, and the millions of lives affected, we need more than a political circus act. We need sound, reality-based reforms.
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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.
This article may be reprinted with appropriate citation and credit.
