Friday, December 23, 2005

Is "Guest Worker Amnesty" a solution or a problem?

The Iconoclast has long advocated the free, unregulated flow of goods, supplies and services across all borders as the surest way to eliminate economic disparity, bring the wondrous fruits of free-market capitalism to the oppressed masses across the globe, and fully harness the engine of human capital. This philosophy has always extended to the supply of labour, but as the issue of immigration has heated up in this country, and as it has begun to cause major social unrest in Europe, the Iconoclast must confess to hearing some intriguing viewpoints that counter all previous thinking on the subject. Chief among these is the issue of immigration amnesty.

As you already know, business leaders and some in Washington are pushing for changes in immigration policy that would institute some sort of amnesty for illegal aliens already in this country as well as a "guest worker program" that would permit the easy flow of a low cost work force across our borders. This would signal a paradigm shift in the way this nation has historically handled immigration, but the times, as they say, are a-changing. Our lives have become permeated by a culture of constant good-for-cheap, more-for-less consumption. The self-fulfilling economic prophecy that we must all continually buy more with the money we have in order to expand the economy so that we can make more money to buy more and keep the party rolling is now central to our national psyche (a personal lament that the Iconoclast will take up in greater length at another time). Unbridled consumption is the god of the new millenium, and all there is left to do is to inscribe it in Latin on our currency. The upshot is that the economics of low price consumption now frame the discussion of issues as disparate as immigration, corporate pensions and the location of Wal-Mart's next store. But few national subjects are as plainly driven by the low-cost economics (or stir opposing passions) as the issue of illegal immigration and the current movement to codify in principle what has already been occurring in fact on our southern border.

On the face of it, establishing an organized and orderly supply of cheap labor makes obvious sense to cost conscious corporate managers (like the Iconoclast) that wish to support ever shrinking margins in the face of global competition from lower wage economies. But Phyllis Schlafly makes the compelling argument that any immigration policy that includes massive importation of low wage, unskilled labor only serves to perpetuate the corruption, social and economic bankruptcy, and other adverse conditions that pervade Latin America and drive the masses to chase "El Norte". Institutionalizing the problem with a new government program will do nothing to solve the underlying circumstances that are driving the mass migration north and all the adverse effects on American society that this rapid, massive influx creates, according to Schlafly. And while the short term goal of lower costs for services to consumers may seem laudable, she claims, the longer term impact on, and costs to, our society (and to our economy) are being overlooked in the rush to make a fast buck off this cheap labor. At the same time we may be creating a permanent new underclass of serfs indentured to our need for cheap labor - people with no skills or education, little civic attachment to our society other than that three dollar per hour landscaping job, and scant hope of getting a better job in a skills-based economy. In her view, "Guest Worker Amnesty" is just spinspeak for economic serfdom, and we've recently seen the results of a similar dynamic in Europe.

Chris Adamo goes further in supporting Schlafly's point. Rather than holding up the corporate community as knights in shining armor rushing to the aid of huddled immigrant masses yearning to breath free, Adamo convicts the business leaders clamoring for ever-cheaper labor of being "morally rudderless entrepreneurs". While that kind of vitriol does little to advance a rational discussion of the underlying issues, Adamo does put the lie to the fallacy that illegals fill jobs Americans won't. Instead, he argues, they fill jobs Americans won't fill at third world wages, and our unwillingness to pay a higher price today only blinds us to the reality that we still incur the added cost tomorrow. In the end, Adamo says, these low cost workers aren't as low cost as we think since massive immigration is burdening the system in terms of added services, not to mention declining quality of life for the rest of us. These hidden costs aren't passed on through the illegal worker's employer, nor are they noticed by the price conscious consumer when he/she buys produce at the supermarket. But they are paid by all of us nonetheless in increased taxes and other significant costs incurred to support the public healthcare, schools, transportation and all the other infrastructure impacted by this massive influx of new people.

Was getting your house painted by Jose really as cheap as the $100 a day, tax free deal you thought you were getting? It may seem so after he leaves. Out of sight, out of mind. But who pays when he gets sick and goes to Jackson Memorial for treatment, or when your child's class size increases with his kids' admission to the local public school, or when business at your store is affected by the 150 day laborers congregating in the parking lot every morning waiting for someone to offer them $100 a day to paint a house? Its not Jose's fault that we encouraged him to come because we want cheap labor. He just wants to work and there is nothing wrong with that.

The Iconoclast is no bleeding heart liberal, but the image of the destitute immigrant arriving at our shores possessed of nothing more than a desperate desire to work hard and better himself (and contribute to our economy) is held sacred and stirs the heart of this and every other American patriot. On that count alone I say, "Let Jose in!" Yet, is perpetually importing a low-wage, low-skill mass of new people the answer, and if so where does it end? How did our economy get along so well for so long before this supply of dirt cheap labor became so readily available? Does it serve the short term economic goals of a society increasingly focused on the immediate need to get more for less, but at greater long term cost? Or is this just an inevitable part of the same globalization we are taking to the rest of the world? And finally, what will historians write about this, the pre-emminent population dynamic of our time, in two hundred years? These are questions I hope you will all ponder with me.

209 Comments:

At 6:07 PM , Blogger Centerline said...

Great post….

I do not see this debate from the economic perspective (strangely enough for me)…. To me, the “guest worker program” centers around two issues:

1. The Executive branch has been tasked by the Constitution to insure the integrity of our borders. Passing that bucket on to corporate (or otherwise) employers AFTER they have neglected their original and most fundamental responsibility is criminal in and of itself.
2. Rewarding those who have broken the law of our land by admitting them over those who are patiently waiting (for decades) in the long visa lines at our embassies is a travesty of justice. We are attracting exactly the kind of people whom, by their shortcutting the system, have made the countries they come from into the hellhole they are. This is, by the way, not a new program Reagan also pulled an Amnesty Program during his tenure.

Concerning the economic argument brought forth by the Iconoclast, it seems to me that we have a better way of handling it. As I have stated before, I am all for open, legal immigration, as I feel that a majority people, regardless of origin, contribute more to our society than they take out of it. But I also believe that the only real way to do this is to increase the number of open visa slots prospectively, not retroactively.

 
At 7:06 PM , Blogger Nym Pseudo said...

This is one of Nym's good friends....hopefully he picks up some of the slack on the board.

 
At 8:01 PM , Blogger Nym Pseudo said...

Good point of debate and I originally brought it up as many on our little soapbox are conservatives but are 'recent' immigrants. It is interesting for me to see those who are usually economically focused take such a vehement stand on what usually comes down to an emotional argument.

I take this argument from a more clinical approach as I have not experienced immigration (funny what a 100 years does!) and say that we should be fair no matter what the border is.

1) I do not believe in wet foot, dry foot even though the voting furthers my political views. As a human being, I see a Haitian, a Cuban, a Mexican, a German as the same. Most people who come here want to be here and WILL contribute to our society.

2) I do not believe in OPEN immigration but more due to the fact that after 9/11 the world as we know it has changed and we need safer borders. Take a number, let us vet you and ensure you meet some requirements and lets move forward.

3) I am against jackpot babies for reasons stated in point 1. I don't think it is fair to give people with access to the border an advantage to those who do not have access.

And one more thing lest you think I want to keep everyone from dipping their toes in the melting pot....this country NEEDS immigration.

It is the lifeblood that makes this country's heart beat strong. I love where I live and the diversity in cultures I have seen. This country always need more fuel trying to push to the top making a better life for their children. That is what truly makes this country a great place to live...

 
At 8:04 PM , Blogger Nym Pseudo said...

And one more thing....

This is a top 3 issue for discussion. It means a lot to our current and future society and there are good points on both sides of the aisle.

 
At 8:05 AM , Blogger Nym Pseudo said...

Arnold commission a study recently in California to look at the impact of immigration on the state economy. California has 1/4 of the nation's legal and illegal immigration coming mostly from Mexico and Asia.

Despite the tech and aerospace busts the following was found:

California has had a higher increase in wages as it relates to standard of living than the average state.

California has had a higher increase in jobs created.

California has had a bigger decrease in unemployment than other states.

However, the state is bleeding in the loss of payroll taxes. LA County alone estimates that it lost 2 billion dollars last year.

Food for thought.....

 
At 10:12 AM , Blogger Centerline said...

Again, generally in agreement with Nym. But there are differences between economic immigrants and political immigrants. The differences are at once significant and obvious - and not just in cause.

Please review statistics of differences in median , average and per capital income, standard of living and political influence (all together and separate), amongst the major national groups of 20th century refugees. You will find a greater capacity to integrate, earn a living and adapt to the political environment amongst political refugees than among economic refugees IN ALL CASES (see the Bureau of the Census statistics below).

This should not be surprising at all. Political refugees are usually skimmed from the higher socio-economic spheres of their countries, whereas economic refugees come from the lower socio-economic spheres. Thus, while 2% of the U.S. Senate is of Cuban origin (an obvious over-representation gained through political savvy in the shortest amount of time ever by any immigrant group), it is 0% Mexican, even though Mexico has had the most people migrate to the U.S. of any nation in the last 100 years. While Cuban Americans sway U.S. Presidential elections with their vote (and they vote about 65/35 Republican vs. Democrat), Mexicans vote very much like blacks (10/90 Republican vs. Democrat) reliably on the left of the spectrum – and thus are also taken for granted by politicians.

The same can be said of the other major group of political immigrants – the Chinese and Vietnamese. It is obvious that their language has not been a handicap for them. Take a look at how their income exceeds even that of U.S. born whites http:/www.infoplease.com/ipa/A0104688.html They are lumped in the group of Asian Americans, but Chinese and Vietnamese immigrants are the overwhelming majority of that group. In the same table, observe that Hispanics tend to earn much less than whites – with the Mexicans forming the overwhelming majority of that group.

I am including the specific national origin links from the 2000 Census. I think the statistics could convince anyone who looked at them objectively. The National origin statistics included are
China: http://www.census.gov/population/cen2000/stp-159/STP-159-china.pdf (political refugees)
Cuba: http://www.census.gov/population/cen2000/stp-159/stp159-cuba.pdf , (political)
Haiti: http://www.census.gov/population/cen2000/stp-159/stp159-haiti.pdf (economic)
Mexico: http://www.census.gov/population/cen2000/stp-159/STP-159-Mexico.pdf (economic) and
Vietnam: http://www.census.gov/population/cen2000/stp-159/STP-159-vietnam.pdf (political).

I chose not to include Venezuela and Nicaragua (both political) because, even though they fully follow the stated pattern, their immigrant numbers are statistically insignificant as of yet. But if you are curious, you could find all countries http://www.census.gov/population/www/socdemo/foreign/STP-159-2000tl.html.

So yes, Nym, whether you choose to see it not, there are very significant differences regarding immigrant impact in our society.

 
At 12:27 PM , Blogger The Iconoclast said...

This comment has been removed by a blog administrator.

 
At 12:36 PM , Blogger The Iconoclast said...

Nym, you make an unassailable point: this country needs immigration. No argument there, but the finer point you should have made is that this country needs orderly immigration. The kind of immigration that allows the established citizenry of this country and their representatives decide WHO we want to let in. This stands in stark contrast to the current situation where we take whoever is able to come across the fence with no questions asked. As Centerline's data so clearly demonstrates, there is a greater long term benefit to accepting certain immigrants over others. Unfortunately, these arguments are lost when the low-cost-workforce calculus comes into play.

Centerline, I agree wholeheartedly when you say that the "Executive Branch is passing that bucket on to corporate (or otherwise) employers AFTER they have neglected their original and most fundamental responsibility" of defending our borders. Only those with a greater interest in expanding their particular immigrant community than in maintaining the long-term stability and sovereignty of the greater, established American community would deny that the Executive Branch has been woefully derelict in tending its Constitutional duties here. But I must disagree with you when you characterize this as "the root of the problem". It is instead a symptom and not the root. Politicians do not work in a vacuum, and every action (or inaction) is a result of complex local, regional and national politics. There must be a larger cause other than just a string of succeeding administrations from both parties falling asleep at the switch on such a huge issue. Were it not for a broader national impetus for allowing 15 million undocumented people to literally invade across our border and severely tax local and state systems and infrastructures, adversely impact residents in border states, stir up fears about crime and terrorism, and bring all the other negative effects that come with a massive, uncontrolled influx of poor, uneducated and unskilled people, I believe the non-low-wage politics would have prevailed and this would have been addressed aggressively at the federal level years ago.

There is also another political dynamic coming into play that is starting to impact the issue as much or more as the corporate economics - good old fashioned Representative Democracy. As the illegal immigrant community has expanded dramatically it has begun to gain more political clout. They are quickly gaining in representation from those who seek a political advantage from such a large group, regardless of whether the broader national good is served by pandering unquestioningly to their "rights". THis has happened before with legally absorbed groups of immigrants (Irish, Italians and Cubans as obvious examples), but we are beginning to see it for the first time with an undocumented group. Witness the misguided effort in some communities to give illegals representation on local school boards. As this group continues to grow in size (see: http://www.cis.org/articles/2005/back1405release.html) you can expect self-serving politicians and interest groups to continue presenting elegant arguments as to why it is good for our economy to let this massive influx continue unabated without so much as a turnstile at the border. Some supporters of this push say it would give illegals a greater stake in American society. I would argue the opposite - if we give them the benefits of citizenry without even having to declare themselves it only gives them added benefit to come her illegally and stay undocumented.


Note: One final, more technical point on Centerline's analysis of disparities between political and economic refugees: the classification of these two groups is rarely exact. Often times a refugee can rightfully be considered either or both depending on the circumstances that drove their migration. For example, while most Cubans that came to the United States prior to the Mariel Boatlift were clearly political refugees, it can be argued that many that have come since have done so purely on economic grounds as the basic subsistence situation in Cuba has become increasingly unbearable (whether these later "economic" refugees have been as successful as the prior "political" wave is a topic for a separate posting). Likewise, Haitians are categorically listed as economic refugees, but can anyone genuinely describe the current social and political circumstances in Haiti as any less onerous than those in Cuba? Cubans are generally hailed, accepted, and "adjusted" and upon setting foot on our beaches whilst Haitians are chased across the causeway, captured and summarily packed off to the hellhole from whence they fled. The big difference is that the Cubans have a large and politically represented constituency in this country (see my last point above).


-I

 
At 12:50 PM , Blogger The Iconoclast said...

One more, interesting item: according to the Center For Immigration Studies, 3.5 MILLION undocumunted aliens have come into the US since 2000.

 
At 8:43 AM , Blogger Nym Pseudo said...

Centerline...Are we truly "skimming off the top" anymore with the Cuban immigrants? I will grant you that the first wave of ANY immigrant wave (political or social) is usually the cream of the crop. How long does that hold true though?

 
At 5:45 PM , Blogger Centerline said...

I am not advocating in favor of the Cuban inmigrant over any other. I am an American and, as such, I look at the problem from the particular viewpoint of what is best for us. So no, we may not be skimming off the top any more in the Cuban inmigrant front. But this only reionforces the point that we need to get significantly more selective - and chose, rather than accept.

We certainly need inmigrants. Without them, the country will enter a state of negative population growth that can only result in a European style decline in economic, political, military and social influence.

But, we need to be selective. While I am against re-writing any signs on the Statue of Liberty ("Give me your poor, your tired, your huddled masses.."), I think we can make an intelligent political case for making it easier for those who are more likely to make a more direct and immediate contribution to come to the states. And my reference to a contribution is not just about mowing my lawn. I am talking a contribution to the common good - a contribution that will keep us at the forefront of global research and development in every one of the new fields of science, engineering and literature.

Ours is a world where the differences that kept the best, brightest and most talented flowing into our country are not as marked as they used to be..... Our famed system, which rewards, rather than punish talent through onerous taxes or unreasonable demands is being succesfully copied across the world - from Ireland to Taiwan.... It is time to remove quotas for people who meet a yet-to-be-discussed set of attributes.

 
At 2:39 PM , Blogger Carl Spackler said...

If I understand the enormous (and well written material) I have read here, then it seems that the following would be a good compromise solution:

- Allow a guest worker program, but make it one that will allow for citizenship under certain circumstances (language proficiency, educational achievement). These people would not be placed ahead of others for citizenship, but they would be moved to something such as a unlimited work visa.

- Close the borders.

- Going forward, provide guest worker opportunities for countries other than just Mexico. IMO, it has to be a "going forward" solution because I don't think we can just round up and throw out people who are already here. Yes, I know we are rewarding people who broke the law to get here, but you and I both know that we are not enforcing the law, so in many cases, these people are doing just what any ambitious person would do in their circumstance.

 
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