How Unskilled Immigrants Hurt Our Economy

Steven Malanga For City Journal (Part VI of VI)
A handful of industries get low-cost labor, and the taxpayers foot the bill.

If low-wage immigration doesn’t pay off for the United States, legalizing illegals already here makes as little sense as importing new rounds of guest workers. The Senate and President, however, aim to start two-thirds of the 11 million undocumented aliens already in the country on a path to legalization, on the grounds that only thus can America assimilate them, and only through assimilation can they hope for economic success in the United States. But such arguments ignore the already poor economic performance of increasingly large segments of the legal immigrant population in the United States. Merely granting illegal aliens legal status won’t suddenly catapult them up our mobility ladder, because it won’t give them the skills and education to compete.

At the same time, legalization will only spur new problems, as our experience with the 1986 immigration act should remind us. At the time, then-congressman Charles Schumer, who worked on the legislation, acknowledged that it was “a riverboat gamble,” with no certainty that it would slow down the waves of illegals. Now, of course, we know that the legislation had the opposite effect, creating the bigger problem we now have (which hasn’t stopped Senator Schumer from supporting the current legalization proposals). The legislation also swamped the Immigration and Naturalization Service with masses of fraudulent, black-market documents, so that it eventually rubber-stamped tens of thousands of dubious applications.

If we do not legalize them, what can we do with 11 million illegals? Ship them back home? Their presence here is a fait accompli, the argument goes, and only legalization can bring them above ground, where they can assimilate. But that argument assumes that we have only two choices: to decriminalize or deport. But what happened after the first great migration suggests a third way: to end the economic incentives that keep them here. We could prompt a great remigration home if, first off, state and local governments in jurisdictions like New York and California would stop using their vast resources to aid illegal immigrants. Second, the federal government can take the tougher approach that it failed to take after the 1986 act. It can require employers to verify Social Security numbers and immigration status before hiring, so that we bar illegals from many jobs. It can deport those caught here. And it can refuse to give those who remain the same benefits as U.S. citizens. Such tough measures do work: as a recent Center for Immigration Studies report points out, when the federal government began deporting illegal Muslims after 9/11, many more illegals who knew they were likely to face more scrutiny voluntarily returned home.

If America is ever to make immigration work for our economy again, it must reject policies shaped by advocacy groups trying to turn immigration into the next civil rights cause or by a tiny minority of businesses seeking cheap labor subsidized by the taxpayers. Instead, we must look to other developed nations that have focused on luring workers who have skills that are in demand and who have the best chance of assimilating. Australia, for instance, gives preferences to workers grouped into four skilled categories: managers, professionals, associates of professionals, and skilled laborers. Using a straightforward “points calculator” to determine who gets in, Australia favors immigrants between the ages of 18 and 45 who speak English, have a post–high school degree or training in a trade, and have at least six months’ work experience as everything from laboratory technicians to architects and surveyors to information-technology workers. Such an immigration policy goes far beyond America’s employment-based immigration categories, like the H1-B visas, which account for about 10 percent of our legal immigration and essentially serve the needs of a few Silicon Valley industries.

Immigration reform must also tackle our family-preference visa program, which today accounts for two-thirds of all legal immigration and has helped create a 40-year waiting list. Lawmakers should narrow the family-preference visa program down to spouses and minor children of U.S. citizens and should exclude adult siblings and parents.

America benefits even today from many of its immigrants, from the Asian entrepreneurs who have helped revive inner-city Los Angeles business districts to Haitians and Jamaicans who have stabilized neighborhoods in Queens and Brooklyn to Indian programmers who have spurred so much innovation in places like Silicon Valley and Boston’s Route 128. But increasingly over the last 25 years, such immigration has become the exception. It needs once again to become the rule.