Friday, March 31, 2006

 

As I Was Saying about Immigration

UPDATED @ 9:02 PM

Immigration, legal or not, is more than an economic issue. Most economists -- even economists I respect -- just don't get it. It is stupid to let people enter the U.S. if the result of doing so is an expansion of the regulatory-welfare state, both directly -- for the benefit of immigrants -- and indirectly -- as a result of the votes those immigrants cast (eventually) for politicians who seek to expand the regulatory-welfare state.

It's time to seal the borders and admit immigrants based strictly on their demonstrated ability to make an immediate, positive economic contribution. That prescription might seem to run against my interest, inasmuch as I live in Texas, which is a first stop for immigrants who work for low wages. Given the cost of the regulatory-welfare state of Texas, however, I believe that I would be better off with fewer immigrants. In any event, the long-run economic vitality of the United States requires a citizenry that has a stake in, and is more likely to support, limited government and free markets.

An immigrant to the U.S. makes a positive contribution to economic growth only if he or she can be more productive here than in his or her homeland. That's true of Mexican construction workers who are harnessed to America's economic-growth engine, but it's even more true of scientists and engineers from Europe and Asia, who can advance the technology that enables economic growth. Furthermore, those scientists and engineers are not going to demand welfare benefits, and they are less likely (on the whole) to vote for politicians who seek to expand the regulatory-welfare state.

Immigration is an economic issue, but a far more complex issue than the one depicted by most economists, who omit the economic implications of the politics of immigration.

UPDATE: The Conservative Philosopher says
. . . if we could kick out one leftist for every immigrant, I'd favor it.
Roger that.

Recommended reading:

Answering 13 Frequently Asked Questions About Illegal Immigration, at Right Wing News.

The 1965 Immigration Act
, at WizBang! A related note: constant-dollar (real) GDP per capita grew at an annualized rate of 2.1% in the 39 years from 1965 through 2004, compared with a rate of 2.3% for the 39 years from 1926 through 1965. The higher rate for 1926-65 was accomplished in spite of the Great Depression; for the 10 years from 1929 through 1939, real GDP per capita grew at an annual rate of 0.2%.





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