Tuesday, May 22, 2007

Why is Immigration Policy so Difficult?

As a first generation American. The son of an immigrant. I am a bit perplexed by our inability to fix the immigration problem. But to a tin foil hat wearing, nut like me. Someone who thinks from way outside the box. It is not all that complicated. In fact it is easy.

First we have to make legal immigration easy. There is no need to build a fence or a wall. People will just find a way around that. In making legal immigration easy, we automatically control illegal immigration and make it much more difficult. Having worked in Mexico, I found their system to be quite effective. Upon entering the country I applied for a work permit. I had to provide proof of U.S. citizenship, and identity. With my work permit I was permitted to work and conduct business in Mexico for the limited period of the permit. Upon leaving Mexico, I was required to turn the permit back in. Failure to do so would result in a hefty fine the next time I returned to Mexico to work. As I recall they even had computers set up in the immigration office to check this. With our work permit would come a number. This would be the equivalent of a social security number, and any employer would have to utilize it in that manner. Wow! You realize this means we would collect social security and income taxes on immigrant workers. Since immigrant labor would never collect social security, except in the rare cases of those who become citizens, this would also help to resolve the "crisis" with this program.

This next bit is the real sticking point. Holding employers responsible. If any employer caught paying compensating or utilizing the services of anyone without a valid work permit, was fined on a escalating scale and eventually faced jail. Well then, not many people would employ illegals would they? Make this apply to the top person in the company. Make that person responsible for insuring the company follows the law. Of course we know in most cases Fortune 500 companies are not employing illegals. Most of the time it is construction contractors, farmers, labor contractors, and small businesses.

How about enforcement? Right now we rely on the INS and Border Patrol. Enforcement too is easy. How about we empower local law agencies to enforce the laws and gave them a cut of the fines? This is not empowering them to arrest the people without work permits. No, we do not want the labor to scatter like the wind when the police show up. That is the traditional approach that goes after the immigrants and not those who hire them. This is the power to arrest their employers.

I too worry about the creation of another permanent underclass. As a part of allowing someone employ an immigrant and the regulation of both interstate and international commerce we could create a minimum wage for immigrant workers. Setting that wage would be a matter of economic policy, but as a part of this, employing an immigrant could not be on a cash, or day labor basis. Make the employer collect or pay all the applicable taxes. We might even have an additional tax on immigrant labor to cover the cost of administering work permits and other associated costs. This has the additional advantage of creating a disincentive to using immigrants. Right now it is actually easier in many cases, to employ illegal immigrants than it is to employ citizens.

How about the highly skilled knowledge workers big companies say they need? Let the Microsofts, and the Hewlett Packards, bring in as many as they want providing: 1. They cannot find a qualified US. Citizen or permanent resident. 2. They offer a multi year contract with benefits. 3. They take responsibility of the cost of the person’s return home if they do not want to stay. These workers cannot be allowed to job hop. They must be tied to one employer to make this work. They must be allowed to quit at any time, but must also be guaranteed employment by their sponsor. They could also come in for a shorter time with a regular work permit.

What about the illegals already here? Make them go to the border or an INS office and get a work permit just like everyone else. No amnesty. If they continue to work without a permit their employer will suffer the wrath of the law. When the permit expires they must turn it in at the border and go through the required waiting period before they are able to return

What about citizenship? The privilege accorded citizens or permanent residents is that of free enterprise. Going beyond working for wages. The American dream. Immigrant labor should be just that, and only that...labor.

I think you should see where I am going with this. I am making those who employ immigrants the responsible party. Not the immigrant, not the government. By regulating the marketplace for immigrant labor the problem becomes easier to deal with and control. But I doubt this will fly. Employers wont stand for being held responsible, and it will put upward pressure on wages, which according to the Federal Reserve is a bad thing for some reason.

The reason immigration is a complicated problem is because there are 3 forces at work. 1. As in any economy, there exists a market for cheap labor. 2. Citizens are unhappy with the downward pressure on wages this creates. And 3. A bi-partisan group of people believe in the rule of law, but are more beholden to the interests of employers than of ordinary citizens and immigrants. It is in trying to continue to supply(1) while pulling a con on (2) that (3) have all the trouble. In more simple terms: It is very difficult to take from the wealthy and give to the poor. No wonder it is all so complicated.

We could make immigration work to everyone's advantage. Especially if it were combined with universal heath care. We want immigrant labor to play on the same level as the rest of us. If all immigrant labor were included in the tax base, had health care, and were a part of the above ground economy, there would not be such complexity. We have complexity because the underground economy works to the advantage of an elite few. But those few have tremendous power with lawmakers. In fact they often are lawmakers, or in government. Think "nannygate".