Monday, June 25, 2007

Border security and unintended consequences

With Congress seemingly unable to reach a compromise on how to deal with immigration reform, we are headed toward more of the same in terms of an extension of current policy. Over the past few years legislation has focused on increasing border security in the name of protecting our borders from immigrants who might perform dastardly deeds such as terrorist attacks or getting a job. This increased border security resulting from manpower, technology and walls has had an effect on cross border migration, but not all of the consequences are intended. The construction of walls in urban areas like San Diego has had the effect of changing the migration routes from the urban routes where undocumented immigrants are more easily apprehended to the desert areas of Arizona and New Mexico which are harder to police and more dangerous for the immigrant to traverse. Because border crossing is now more dangerous and expensive, undocumented immigrants have chosen to stay in the U.S. rather than return to their home countries. In-migration to the U.S. has stayed relatively constant since the early nineties. What has changed is a dramatic drop in out-migration. This discrepancy has resulted in a big increase in the undocumented immigrant population. As Congress addresses this increase by such policies as forcing all 12mm undocumented immigrants to return to their home countries and preventing future immigrants from entering the country, it seems to be neglecting a number of very real considerations and responding to hysterical statements by the anti immigrant crowd. There are moral, practical and economic issues to be considered. Recent surveys show that there are 14mm people living in households headed by undocumented immigrants. Of these, 4mm are American citizens, primarily minor children who are citizens by birth right. If we deport the heads of these households, are we prepared for media pictures of crying children and parents as they are separated, perhaps never to be reunited? (For a real story, click here) From a practical point of view: How will we fill these jobs while they are gone? In the 21st century global economy goods, services and all of the inputs (capital, information, technology, etc.) except labor flow relatively freely across national boundaries. Does a policy of further restricting the flow of labor make sense? The US economy creates 400-500,000 more jobs each year than the native born population can fill. It seems to me that there are several possible solutions to this mismatch of demand and supply.
1. Slower growth to reduce the number of jobs created
2. Export the unfilled jobs overseas
3. Import workers to fill the job demand
Slowing the natural growth rate of the economy and making everybody poorer does not seem like a wise policy either economically or politically. A policy decision to export jobs overseas would result in the high skill and high paid jobs being done by foreigners leaving the low paid jobs for “Americans”. Indians, Chinese and Poles can do the high paid technology jobs; only “Americans” can mow my lawn. If we choose to import workers to fill the job demand the questions are: Will they be documented or undocumented? Will we know who they are and where they are? From a security point of view we would be better served if they were documented. Current proposals would allow high skilled workers to enter legally for 2 years. Isn’t there a disconnect between bringing in highly skilled workers, training them and then sending them home to do the job there. Maybe we should recognize that in a global economy migration “just is” and focus on mitigating the problems resulting from it.

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