The Economic Argument Against Immigration is Pretty Gross

The economic argument against immigration is especially disgusting.

You might think cultural arguments about keeping a country “pure” or safety arguments claiming all immigrants are criminals are more offensive.  But let’s examine what the economic argument against immigration really means.

The idea of forcibly preventing individuals from crossing a border in order to give an economic advantage to those on the other side of the line is barbaric when you ponder it.  Immigration restriction for the purpose of “protecting jobs” really means the violent prevention of people born in certain places from trying to earn a living.

Imagine you want a certain job.  So does your neighbor.  Would you slash his tires to keep him from getting to the interview?  Would you build a wall around his house preventing him from leaving because he might compete with you in the market?  Would you shoot him if he tried to scale it for the chance of landing the job?

If you knew a person living in horrible conditions, whose children may well die of an entirely preventable disease, and they just need a decent job to be able to afford better environs for their family, would you feel proud for sending armed thugs to follow that person around and ensure they never left their crappy neighborhood to apply for jobs elsewhere?  Even if it meant grinding poverty and possible sickness and death for the family?  Would you cheer and say, “Yeah!  I’m protecting my job opportunities!”

If you support immigration restrictions that’s exactly what you’re doing.

Economies are best served with open competition.  No one thinks forcibly shutting down competitors or collaborators is a good move or morally permissible…unless those competitors and collaborators happened to be born in certain places.

Can you think of more blatantly bigoted behavior?  The belief that certain individuals should be violently prevented from even trying to get certain jobs or live in certain places based purely on the piece of land on which they happened to be born is no less reprehensible than Jim Crow, Apartheid, or any of the other universally condemned forms of legal economic oppression.

Leave aside the fact that immigration restrictions are bad for the economy as a whole, and that far more people in the restrictive country are harmed by being unable to hire or buy from vast swaths of humanity.  Even if it were true that immigration restrictions made native born citizens better off they would be no less disturbing and morally bankrupt.

If I paid armed agents to keep every potential competitor for jobs or customers under house arrest you wouldn’t forgive me if I could prove that the practice helped me economically.  You’d call me a cold-hearted psychopath.  Even if border patrols gave you an edge by keeping some potential competition behind barbed wire it wouldn’t make your advocacy of them honorable.  “Hey look, I can get ahead by keeping this poor person from trying!” is not the cry of an honorable person.  “People who weren’t born where I was shouldn’t be allowed to apply for jobs!” isn’t a belief to boast about.

All arguments against the free and peaceful movement of people are bad.  Arguing it’s to protect your economic interests reveals a level of moral bankruptcy that is truly unsettling.

Episode 38: Alex Tabarrok Says Let’s Get Rid Of Borders

What’s the best way to help the desperately poor gain access to a higher standard of living?  Let them leave poor countries and go to those with more opportunity.

Alex Tabarrok advocates getting rid of immigration restrictions. In this episode we tackle some of the most common objections to #openborders that concern economic, institutional, cultural, and security issues.

Alex is a professor at the George Mason University and co-author of the Marginal Revolution blog.

This and all episodes are available  on SoundCloud, iTunes, and Stitcher.

Should the Poor Be Forcibly Sterilized?

Do you think I could convince you that the US needs a forced sterilization program to prevent poor people from having children?

Before you react, please take a moment to consider my case…

What if I told you that people born into poor families have a higher statistical likelihood of committing some kind of crime during their lifetime?

What if I told you the children of the poor are more likely to have bad grammar and adopt fashions and habits out of the cultural norm?

What if I told you those born to poor parents might end up getting low-paying jobs, meaning they might be competing with the kids of the middle class for entry level work?  It might make it harder for your kid to get a job if all these poor kids are also trying to get jobs!

What if I told you that the children of the poor run a high risk of voting for policies that you don’t like?  They might cause a demographic shift that alters the outcome of the democratic process!

If the poor aren’t stopped by force from procreating, consider these ways in which the world may change in the next few decades!

Would you get on board with my plan?  Would you say yes, given the potential outcomes outlined above, it is imperative that we send armed agents to the homes of everyone in the bottom quintile of earnings so that they can be sterilized?  Would you accept that we must prevent their offspring from entering the world?

Never.

You’d tell me this plan is repugnant.  You’d liken it to eugenics and the greatest human rights violations in history.  It would strike you as deeply disturbing, inhumane, and tyrannical.

You’d tell me that the idea of a human life being forcibly prevented from entering the country simply because of someone’s belief about a statistical probability that the child might be or do things others don’t like is morally reprehensible.

Even if I told you there was a way some poor people were allowed to be born, if they got lawyers and costly licenses and permissions slips and only a limited number and only from certain neighborhoods, you wouldn’t feel better about it.  It would still feel just as icky.

Your moral intuition would be dead on.  You’d be right.

That’s why we should end immigration restrictions.

The Problem of Forced Association

There’s a lot of ruckus over laws that either require or don’t require businesses and individuals to interact with each other.  Most of the discussion is focused on the identity of various parties in favor or opposed to the laws – gay couples, Christians opposed to gay marriage, liberal or conservative activists, etc.  It’s an ugly debate to watch.  Everyone is battling for control over the laws that determine who should associate with whom and under what conditions.  The real problem is not which people like and dislike which other people.  The real problem is the acceptance of forced association as a concept.

Forced association is any kind of social, civil, or commercial interaction that is hemmed in by force rather than choice.  It demands inclusion and exclusion based on rules passed down from authorities, rather than the free interplay of autonomous individuals.  Immigration restrictions are a form of forced association (in this case dis-association).  So are most anti-discrimination laws.  The idea that your social network must be determined for you is destructive of genuine community, and breeds hatred.  Everyone is left fighting over the rules and calling names instead of simply choosing to interact or not interact with whomever they wish.  How do you manage your Facebook friends?  Imagine if there were laws dictating certain people you were not allowed to friend, or certain pages you had to follow, or that you must treat all friend requests equally no matter who they came from?  A terrible recipe for genuine and meaningful interaction, friendship, and exchange of ideas.

Yet in society at large nobody seems to question forced association.  And why should they?  After all, most people have been conditioned since age 5 to accept a social scene tightly dictated by authority figures, not chosen by themselves.  School is forced association.  You must be with people the same age and zip code all day every day.  You can’t freely wander the halls and pop in and out of classes.  You can’t shop for teachers or friends or mentors across the entire community.  You get your cinder block cell with your pre-assigned seat and social group.  Better hope you find someone to get along with.

Bullying is a phenomenon borne almost entirely out of age-restricted groupings.  The response is never to allow kids to exit the cohort, or class, or school district, or school altogether.  That would work.  But it would mean free association.  Free association is too dangerous.  What if kids don’t become the widgets we want to fashion them into?  Instead efforts to stop bullying are just like the absurd efforts to curb rudeness in society with laws of forced association.  It’s a battle over who gets to define the bully, the victim, the reporting process, the burden of proof, the new rules, the banned items and words, the sensitivity training, the punishments, and who gets to be the ruler of the forced association.

Forced association is ugly, inhumane, and barbaric in all its forms.  As long as people are raised in environments of forced association it should come as no surprise that when they encounter a jerk they immediately begin a debate over what rules should force the jerk to behave differently and why.  Debates over who the real victim is erupt.  Some side with the jerk, some side with the others.  Crowdfunding campaigns and public debates and interviews and one-upsmanship and absurd hypothetical and real court cases emerge.  The whole spectacle is dirty, rude, vicious, and pernicious.

No one needs to make rules for who can or must associate with whom and in what way.  Free association can and will do a better job of sorting out all the conflicting beliefs and behaviors of members of society than any plan or rule.  Break from the mentality you’ve been raised with.  Apply the mentality you use on Facebook.  Forced association is never the answer.

What if it Was You?

What would you do if the US economy hit rock bottom?  I mean real rock bottom.  Not like the dot-com or housing bust.  More like perpetual, long-term, no end in sight economic stagnation where grinding poverty was the norm.  If the average wage dropped below half of what it is today.  If you were only able to earn 12, 10, or 8 thousand a year no matter how hard you worked.  If there was no upward mobility and no prospect for a better life.  If your family lived in a house built mostly from pallets and scrap sheet metal and you had to pirate your electricity.  If sickness was frequent and medical care unreliable at best.  Try to imagine a US like that.

Meanwhile a nearby developed country is doing great.  They can’t hire enough workers.  Just moving there and doing the same thing you’re doing now will double your income immediately, improve your family housing and health, and provide ample opportunity for moving up over time for both you and your kids.  Your good friend did it.  Your brother did it.  They are living in paradise compared to what your family lives in.  Businesses there want to hire you, landlords want to rent to you, your kids want to go there.

Would you stay or would you go?

Would going make you heroic or criminal?

There is no room in a humane society for immigration restrictions.

Bad Arguments Against Immigration

Originally posted here.

The Economic Argument
Arguments against immigration on economic grounds basically boil down to “They took our jobs!”. Some feel that allowing people to freely cross borders will result in a flood of low-wage labor that will “steal” jobs from natural born citizens. Labor is a factor of production, just like raw materials or financial capital. Restricting the flow of capital and labor will always decrease economic prosperity. Access to more resources – human or otherwise – always increases wealth and opportunity. If this does not make sense to you, I recommend Frederic Bastiat’s “What is Seen and What is Unseen”, chapter 7, as well as his brilliantly satirical “Candle Maker’s Petition

The Culture Argument
Others argue that immigration must be restricted in order to protect the nation’s unique cultural heritage. I submit to you that any culture which must be maintained by force is not an authentic culture and is probably a bad one. Cultures freely arise because they provide benefits to those who participate in them. Cultures are always changing. Getting government in the business of protecting culture is dangerous and counter-productive. First, who gets to define what constitutes culture? Bureaucrats don’t have the best track record in such matters. Second, do we really want to live in a culture that is forced upon us by government prohibitions, restrictions and mandates?

The Welfare Argument
Advocates of limited government sometimes argue against immigration on the grounds that immigrants make use of the welfare state and increase the cost of government. State-sponsored welfare programs are a problem. Stopping immigration because immigrants might use welfare programs treats one tiny symptom, not the problem itself. If you routinely tossed open cans of tuna on your front lawn and found the neighbor’s cats hanging around your property, would you try to ban cats or would you clean the up the fish?

Though I think the vast majority of immigrants immigrate for jobs, freedom and opportunity, I’m sure some come and make use of government handouts (though less than U.S. Citizens, and likely less than they pay in taxes). The handouts are an attractive nuisance and should be addressed on their own merits, not by attempting to ban the free movement of people.

The Safety Argument
Some argue that allowing easy immigration will bring bands of criminals into their country and make them less safe. First, if something is a crime it is already, by definition, illegal. Threats to life and property are already supposed to be addressed via the existing police and justice system. Putting up a wall and stopping anyone from crossing it on the grounds that some of them may be criminals is ludicrous. By this logic, governments should perpetually engage in random home searches because they might discover criminal activity.

Closed borders probably don’t stop criminals, but let’s pretend that they could; if we could keep foreign criminals out by keeping out anyone foreign, what would we gain? We’d have spent tons of resources keeping out foreigners, most of whom aren’t criminals, and we’d have that many fewer resources to fight domestic crime. Banning people from movement because some of them may be criminals is even dumber than banning gun ownership because some people may use them for crime.

A Better Argument
Freedom to immigrate can be defended from several angles, but I believe the most important argument is based on rights. Imagine you and I have pieces of property that share a border. You wish to traverse my property and I wish to let you, but lawmakers prohibit it. What business do they have dictating whether we can make decisions about our own property? Sure, they were democratically elected, but what business do others have of voting to determine how you and I peacefully use our property?

What if government issued a decree that business owners were prohibited from hiring anyone born on a Tuesday? It’s no different when they prohibit hiring anyone born in another country. Shouldn’t the business owner be free to hire whom he wishes? If an individual wishes to travel, work, buy, or sell peacefully and all other parties involved agree, why should government prohibit it?

When you think up other arguments against immigration, ask yourself why they should not also be applied in state to state immigration? City to city? Home to home?

At bottom, I think much anti-immigration sentiment comes from a fear of people unlike us. I support anyone’s right to be prejudiced, or to associate only with those of like culture. But putting that attitude into public policy not only hampers wealth and progress, it violates my right to associate peacefully with whom I choose.

Obey the Law (of Demand)

The fact that walls and violence are needed to slow the flow of immigrants into this country is proof that more immigrants are economically beneficial.

If immigrants did not create wealth, they would have little incentive to come here.  In a market of voluntary exchanges, both parties benefit from trade.  For every immigrant who can command a higher wage in the US than elsewhere, there is an employer on the other side of that transaction, who benefits more from hiring the worker than not.  Wealth is created.

How much wealth is being left on the table by restricting immigration?  The evidence suggests quite a lot.  If immigrants consider it worthwhile to spend days sneaking through the dessert to avoid border patrol agents and face the very real threat of dehydration and death, the potential payout must be pretty significant.  That means a lot of value for both parties to the exchange.  Despite all the policies and restrictions passed, markets continually push towards equilibrium.

What’s odd about all of this is how revealing it is of our capacity for self-deception.  Americans push for laws that restrict immigration.  Many say that their preference is for fewer.  Yet when they take action in the market place, they reveal that what they really find valuable is just the opposite.  While the laws of the land say fewer immigrants, the laws of economics, reflecting preferences, beg for more through the price signalling mechanism.  Imagine a robot fluent in both English and the price “language” of economics, programmed to interpret the desires of Americans.  Americans would be screaming, “Don’t come here” with words, and begging, “Give me your tired!” with dollars.  I think we’re more honest in the face of trade-offs.  I’d program it to obey actions, not words.

We see the same double-mindedness with bans on box stores, import restrictions, drug prohibition, and a slew of other regulations.  Black markets are evidence of what people value.  If you have to use force to stop something, it’s because people really like that something and opportunities for mutual gain exist.  The more force required, the bigger the potential win-win being squelched.

If you want to know what people value, not just what they claim to value, the law of demand is a better indicator than the law of the land.  Those who follow this law, despite what the rules say, are listening to the true desires of consumers and taking on huge entrepreneurial risk to satisfy them.  How much wealthier we would be if we’d get the state out of the way and let these win-wins occur unencumbered.

You Can’t Have Free Markets without Free People

I’ve run a trading game at seminars and in classrooms where, by the end, all the students agree that free trade creates wealth and restrictions reduce it.  I give out trinkets, ask students to rank how much they value them, then allow them to trade for a few rounds, each with a larger segment of the room.  At the end of each round we tally up the value they place on the goods they have after trading.  As the movement of goods opens up, each person’s wealth in trinkets goes up.  Without producing a single new good, the total value of the goods in the room (measured subjectively by the owners) increases dramatically between the initial dispensation and the few rounds of trading.  Trade creates wealth.

This provides a nice segue into a short talk about the benefits of trade, comparative advantage, specialization, and why trade restrictions make us worse off.  I see several eureka moments as students understand from this simple exercise that freedom to move goods allows resources to go to their highest valued use.  Then I throw in a twist just before Q&A;

“Just as restricting the free movement of goods unnecessarily reduces wealth, so does restricting the free movement of labor; otherwise known as immigration restrictions.”

Hands shoot up.  Despite nearly an hour spent demonstrating and discussing free trade in goods, this single line at the end attracts 100% of the Q&A attention.  Inevitably, well over half the class has a reason why the laws of economics they just learned cannot possibly apply to human resources the way they do to goods and services.  Within the first few questions, every one of these objections withers.  What’s left are objections that have nothing to do with immigration per se, but are problems with the welfare state or the warfare state, and immigration is sought as a scapegoat.

The economic case for the free movement of people is incredibly clear and not hard to make.  Yet those opposed to freedom of movement tend still to cloak their arguments in economic rhetoric.  Even though it’s unsure footing, it is perhaps more comfortable than talking about the moral implications of barring people from interaction and exchange across arbitrary borders.  When you get down to it, it’s one of the most inhumane policies around.  Anyone who talks about helping the world’s poor should start by advocating open borders.

Here’s a great article to get started.

The Law is Written on Our Hearts

(Originally posted here.  I’ve been thinking more on this topic and I felt the urge to re-post.)

A great many people believe that changing the law is the solution to social problems. This is a fiction.

If written law were some kind of unbreakable magic spell, the United States would not look as it now does. Nearly all of what the government does today is not by any stretch of the imagination “constitutional.” Written laws and documents do not hold the power to control individual behavior or government behavior.

It is true that when people believe the law to be important, they will obey it. But when they believe it to be unimportant they will just as easily disregard it. In the end it is people’s beliefs, not the law that determines behavior.

Perhaps we are seduced into the “Myth of the Rule of Law” because it is so hard to see what’s really regulating behavior and generating social order. The “Invisible Hand” that Adam Smith described as channeling self-interest in the marketplace to serve the diverse needs and wants of its participants is also at work in the marketplace of ideas, social norms and morality. The core beliefs we hold and the norms that emerge from centuries of social interaction are what restrain or fail to restrain behavior.

This is not merely academic. It is dangerous to persist in the belief that the law is the ultimate check on human behavior for two distinct reasons: First, law does not ultimately change the behavior of its intended targets; second, because it does change the behavior of others.

The first problem renders social reform efforts ineffective. The vast majority of attempts to restrain government, help the poor, make people healthier, more charitable, more equal, less intolerant, more responsible with natural resources, or better educated are really just attempts to change what’s written on pieces of government paper. A different combination of words in the Federal Register one day to the next cannot change human hearts one day to the next.

A powerful example is the brief experiment with alcohol prohibition in the United States. Many in the temperance movement genuinely wanted to prevent drunkenness, alcoholism and the irresponsible and even violent action that sometimes accompanies. They focused their attention mainly on what they incorrectly thought to be the source of power over human behavior—the law. They were successful in changing the law, but failed to sufficiently change hearts. A large number of people still wanted to consume alcohol because they did not believe it was immoral to do so. Because they believed in it, they did it despite the law. The main effect of making the activity illegal was to make the production and distribution of alcohol a violent business, where it had previously been much like any other beverage. There were not gang wars over the soda fountain.

Contrast the legal strategy with the strategy of an organization like Alcoholics Anonymous. AA aims for the heart. They work to change individual lives and behavior by developing a non-judgmental network of support and accountability. AA has been able to change countless lives and free people from the bondage of alcohol addiction. The law could never do that, and we should not ask it to.

I mentioned a second problem with believing the law to be the source of social order: It has a negative effect on unintended parties. This can also be illustrated by the prohibition example. Not only did the law fail to change the behavior of most drinkers, it succeeded in changing the behavior of criminals and government officials, leading to more corruption and violence. It also allowed those who wanted to lessen the damage done by alcohol addiction to feel like they’d “done something about it,” when in fact they’d not helped those that needed help at all.

The change in the average citizen’s moral sense is probably the gravest danger of belief in the power of law. It weakens our moral sense and lulls us into the belief that legality is a substitute for morality. We cease evaluating actions based on their merits as against the moral law and begin evaluating them against state-made law. We shirk responsibility to offer genuine aid because the law will do it, and at the same time we pronounce judgment on actions that are perfectly moral, just because they are illegal.

The issue of illegal immigration is illustrative. If we examine the idea without cloaking it in legal/illegal terms, we begin to see a different picture:

A friend of mine is desperately poor and wants to earn a better living for his family. He applies for a job with the local grocer. The grocer is impressed with his work ethic and is happy to offer him a job. This job means my friend can move his family out of their impoverished condition, afford a reasonable apartment and begin saving so his children and grandchildren can have a much better life. There is no trespass or harm committed in this story by any of the parties involved.

Would it be moral to hire armed men to stop my friend on the way to his first day on the job and physically remove his whole family and send them back to their old neighborhood and old life? Would you do this even if you knew it meant you were ensuring him a life of grinding poverty and very possibly death?

It is clearly immoral to interfere with another individual in this way, in particular when such interference condemns them to a much harsher life. But that is precisely what most Americans advocate when they cry for enforcement of immigration laws. The only thing that makes otherwise moral people advocate such immoral behavior is the word “illegal”—in other words a belief in the power of law.

People believe that breaking state-made law is in and of itself an immoral act that justifies the use of violence in retaliation. This absurd notion does not hold up under the slightest scrutiny, even for those who most strongly believe it. I have yet to find an American who says that those harboring Jews during the Holocaust were acting immorally and deserved punishment, or that the individuals who assisted escaped slaves along the Underground Railroad were deserving of incarceration for breaking the law.

Helping peaceful people who are destitute and persecuted is noble, and when done in defiance of the law can even be courageous. It is only a belief in the supremacy of manmade law over moral law that prevents most Americans from viewing as heroic those who assist immigrants hounded by armed border agents. I submit that looking out for the poor is better than locking them up when they have done nothing but seek a better life.

When we remove our awe for legislation we discover that genuine social change is hampered by a belief in the power of law. We also discover that good people will tolerate or even condone immoral acts when they believe that what is legal is more important than what is right. It is lazy to let the law be our agent of change and dangerous to let it be our moral compass.