-Caveat Lector-

     Immigration Quandary, Libertarians split on this issue
     by William L. Anderson, [EMAIL PROTECTED]

Immigration Quandary by William L. Anderson

Mention immigration to Austrian economists and other free-market economists and you 
will hear a cacophony of opinions that range from "completely open the borders" to 
"completely close the borders." It is hard to imagine a more divisive subject among 
those with libertarian philosophical and economic bents, and it plays out in the 
political arena with strange bedfellows, including folks like Harry Browne and Patrick 
Buchanan, both of whom have widely publicized and differing views.

Added to the mix is an article by Hans-Hermann Hoppe, who applies a private property 
rule to immigration, saying that in an anarcho-capitalist society, legitimate 
immigration can occur only when the lawful owners invite "foreigners" onto one's 
property. And as one examines the different libertarian opinions on immigration, it 
becomes difficult to find common ground. Thus, I take on this divisive and thankless 
task myself.

Those who prefer open borders say that people are no different than products. If one 
believes in free trade, and the freedom to bring capital over international borders, 
then one should have no problem with labor also passing unmolested from country to 
country. Since labor is a factor of production, it would seem hypocritical to allow 
all other factors to freely cross borders, but then block labor.

The open borders advocates also can easily attack the Patrick Buchanan argument that 
immigration lowers wages for domestic workers. While it may be true in some instances 
that newly arrived immigrant labor indeed can depress wages, the same argument can be 
made for any other factor of production. For example, libertarians do not believe that 
the current sugar import quota program is legitimate just because more sugar imports 
would push down prices of U.S.-grown sugar. In fact, libertarians argue that forcing 
up the price of factors of production, be they labor or commodities, is blatantly 
anti-consumer and ultimately harms the economy.

Furthermore, the presence of immigrants does help ease severe labor shortages in some 
areas of production. Fruit and vegetable prices would be much higher, one can argue, 
if the immigrant workers--both legal and illegal--were suddenly deported and domestic 
workers were left to pick the produce themselves.

Indeed, it is difficult to make an economic argument against open immigration. The 
social and political scene, however, is a different story and many libertarians are 
missing the important point that what happens in the social and political spheres 
matters in every way. It is not difficult to declare that open immigration into the 
United States has the real capacity to ultimately destroy what is left of our free 
market economy and our freedoms themselves.

I write this as the grandchild of immigrants from Sweden and Scotland. My ancestors 
came to this country in search of a better life and they found it. What they did not 
find, however, was a complete cradle-to-grave welfare system as currently exists in 
the United States. While I can say, "They came here to work, not to seek handouts," I 
must temper my remarks with the reality that the government did not make such 
"handouts" available to them. Had there been a welfare system as we have now, I cannot 
say with certainty that my ancestors would not have taken advantage of it.

For all its glorification by the left, the welfare system is nothing more than the 
forced transfer of wealth from taxpayers to those who spend wealth to benefit 
themselves. Our current rule by judges takes the welfare state even further, as court 
after court has ruled that public schools and public and private hospitals must take 
in all comers, including those who might be in this country illegally and have no 
ability or proclivity to pay for the services they receive. Such rulings have severely 
burdened taxpayers of Southern California who voted overwhelmingly to limit public 
services to immigrants in the now-infamous Proposition 187. Of course, the leftist 
media painted those who voted for Prop 187 as vicious racists who approved the measure 
only because of their inordinate hatred of dark-skinned minorities.

Once it becomes apparent to certain groups, ethnic or otherwise, that they can have 
special services and privileges available to them, they will leap to take advantage of 
them. I use the example of immigrants from eastern and southern Europe and their role 
in organized labor. Areas where these immigrants and their descendants live tend to be 
highly unionized, especially in the cities of the Northeast.

Because of their special government-protected status, unions are part of the welfare 
state. Granted, unionized workers are expected to punch a clock, but their benefits 
are gained by the covert (and sometimes overt) threat of violence, all of which is 
approved by government. Indeed, unionism has appealed to many in those and other 
ethnic groups because they can appeal to their "status" as an "aggrieved minority."

Ultimately, all of this is reflected in the political sphere. Welfare state 
politicians are able to garner votes from immigrant groups on the basis of the 
"wronged minority" appeal. The political message is that such groups have lower 
economic and social status than majority (read that, white males) groups because the 
majority groups have conspired to keep them poor and uneducated. Therefore, the 
welfare political classes say, elect us and we will give you "justice."

As one can see from recent voting patterns across the USA, the welfare state message 
has an enormous appeal to immigrants. Counties and municipalities that have large 
numbers of immigrants vote in those same large numbers for politicians who wish to 
expand the welfare state by raising taxes on productive citizens and giving them to 
those who are less productive.

While the social and political ramifications of the current policies of immigration 
are bleak, it is by no means easy to limit this new wave of humanity crossing our 
national borders. While Buchanan's demand to build a large fence and concrete ditch 
the length of the U.S. border with Mexico may sound appealing to some, it could never 
come to pass. First, as a construction project, it would be extremely costly and would 
certainly require a stiff tax increase. Second, not only would vast amounts of 
resources have to be diverted from other productive uses to build the wall, the labor 
force needed to man the border barrier would be huge.

If this barrier were built and effectively cut off immigration (which I suspect is a 
doubtful outcome), then most taxpaying Americans would find their taxes increasing and 
consumers would have to pay higher prices for many commodities and services now 
produced by groups dominated by immigrants. Therefore, I believe it would be difficult 
to be able to sell this proposition to most Americans.

That does not mean, however, that I believe our current status of immigration is a 
good thing. Any group of voters that can be commandeered to help expand the welfare 
state and to disrupt peaceful, productive economic activity poses a threat to a free 
society. It is not that Mexicans and other immigrant groups are actively seeking to 
end economic and political freedom as we have known it. Rather, they ultimately become 
the pawn of political classes who would like nothing more than to control the lives of 
those free and productive citizens who now are beyond their reach.

There are no perfect solutions but dramatically reducing the availability of public 
services, decentralizing political decision making, and making it impossible for 
voters to vote themselves goods and services at others' expense will take us most of 
the way. Advocates of a free society cannot afford to ignore these issues as they seek 
strategic means of beating back the forces of statism.

---------
William Anderson (send him mail [EMAIL PROTECTED], anderwl(at)prodigy.net,), is a 
former Mises Institute scholarship student who now teaches economics at North 
Greenville College.. See Anderson's Daily Article Archive at:  
http://www.mises.org/articles.asp?mode=a&author=Anderson

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