Hate Illegal Immigration? Raise Immigrant Wages
That headline is one counterintuitive implication of Drum Major Institute's updated "Principles for an Immigration Policy to Strengthen and Expand the American Middle Class: 2007 Edition." This is hardly rocket science-- even if it goes against the conventional wisdom -- but OF COURSE employers are increasing the hiring of undocumented immigrants: they work cheap, they can't enforce labor rights, and if they cause trouble, they can be deported.
The less that immigrant workers are paid, the more native workers wages are under threat. And higher wages for them mean more goods bought and a stronger local economy.
A lot of people see undocumented immigrants in sweatshops and get the causality wrong-- they think immigrants cause sweatshops, rather than tolerance for sweatshops by the government helping to breed the recruitment of undocumented immigrants.
But go read the DMI report-- it's a corrective to the Lou Dobbs style "populism" that thinks some native workers can win by bashing even poorer immigrant workers. In fact, the best way for all employees to win is to work together to eliminate sweatshops across the economy, enforce the minimum wage and other appropriate labor laws, and encourage a rising tide of wages to lift all worker boats.
Update: Let me add that I was using "sweatshops" in the broad term of workplaces operating under illegal conditions, which are far more extensive than you would think. Check out this piece I did for Progressive States exploring what states could be doing to better enforce wage laws:
- The U.S. Department of Labor found in 2000 that 60% of US nursing homes routinely violated overtime, minimum wage, or child labor laws.
- Another 2004 study from DOL data found that 54% of contractors in the Los Angeles garment industry violated the minimum wage law.
- And in 2005, a survey of hundreds of New York City restaurants found that more than half were violating overtime or minimum wage laws.
Read those sentences again. A MAJORITY of businesses in these industries and other low-wage sectors routinely disregard our wage laws.
Now as for causality, I would refer you to the documentary, American Dream, about white, decently-paid meatpackers in the Midwest who saw those good jobs destroyed not by immigrant workers, but by union-busting employers. AFTER the union was largely destroyed and wages lowered throughout the meatpacking industry, THEN undocumented immigrants began being imported massively to consolidate the lower wage system in the meatpacking industry then put in place by the employers. But the starting point was native workers having their good jobs destroyed before the immigrant workers were even on the scene.
There have always been waves of immigration in the US-- and workers have thrived when they worked across ethnic divisions to raise wages for everyone, and seen wages drop when they allowed themselves to be pitted against each other over racial and ethnic divisions.















I'm not sure you can neatly say the causality runs one way or another. But to the extent that would-be sweatshop owners set up shop because they know they can get the labor to work in them, then yes, you can say immigrants cause sweatshops. And to the extent that the presence of sweatshops help lure more illegal immigrants, then it works the other way around too.
But what is the evidence that the government "tolerates" sweatshops anyway? Are there sweatshops that the government declines to go after even after knowing about them? Is this an issue of funding of government inspectors? What's the basis of saying the government is tolerating this problem?
Finally, it needs to be said that most undocumented immigrants here don't work in sweatshops at all (e.g. domestic workers, farm workers, day laborers etc.). So while focusing on sweatshops may suit organized labor, it doesn't get at the main problem of illegal immigration.
March 5, 2007 12:06 PM | Reply | Permalink
"enforce the minimum wage and other appropriate labor laws, and encourage a rising tide of wages to lift all worker boats."
Yes, we need to increase minimum wage. You can enforce the minimum wage very strictly without fear of being called anti-immigrant.
March 5, 2007 12:08 PM | Reply | Permalink
As far as I can tell, the government, at least the one we have now, is more than happy to pressure wages through the guest worker program.
Minimum wages don't necessarily have a big impact since the web allows people to transfer work across the border without a border guard saying no.
And how do you impose tariffs or minimum wages when people trade under the radar?
Nationalism is an illusion for a lot of people, including myself, since I consume information every day from multiple contents and this exchange is enabled by the english language, not US dollars.
Removing the need for domination, in the form of arbitrage, will take a while but wages are a sloppy way to distribute wealth and create certain psychological modalities that must be overcome.
Wages can be raised, but the market will react. I read a book on NAFTA and it talked about how Swingline Staplers were made by robots in the US but by hand in Mexico-- because the labor was expensive in the US and cheap in Mexico.
The China economy will be interesting if they learn how to make goods cheaply for their much larger population, etc... and US citizens will snap up the leftovers, maybe?
March 5, 2007 12:46 PM | Reply | Permalink
You ask if there are sweatshops that the government declines to go after even after knowing about them.
Try Guam and the NMI for starters.
http://www.nationalreview.com/york/york200603100829.asp
And you say focusing on sweatshops doesn't get at the main problem of illegal immigration.
The diarist's proposal to raise wages was not restricted to sweatshops, as you can see by his reference to the DMI Report
http://drummajorinstitute.org/immigration/ (see page 6)
so any increase in the required minimum wage that is enforced with alacrity by the government would tend to make all the jobs that illegals currently perform more attractive to Americans, who still do many, if not all, of these jobs in many parts of the country where illegal labor has not penetrated in quantity.
And to effectively prevention exploitation of both Americans and illegals, convert all present illegals into documented workers with forge-proof ID and with ±"amnesty", in the form of a details-to-be-worked-out chance to become citizens, and then put some employers in the penitentiary (not the county jail) when they pay such documented workers an illegally low wage or when they hire (newer) undocumented ones.
So, amnesty of sorts for the current illegals, and especially flesh-rippingly strict control over employers, and the illegal problem will take care of itself.
March 5, 2007 1:04 PM | Reply | Permalink
We can perhaps conclude what the priorities were when there were something like 25,000 Border Patrol (now ICE) agents in 2003 and only 150 or so personnel tasked with workplace enforcement. To be fair, there were only 400-some as of 1999. But that that meager number dropped says something.
That roster is increasing, and indictments have also increased, but there's a long way to go.
March 5, 2007 1:07 PM | Reply | Permalink
Well Nathan Newman focused on sweatshops, which is why I mentioned it. But you're right that sweatshops aren't the issue. Or rather not the main issue.
The real difficulty is that while a sweatshop makes a nice convenient target for government enforcement of the minimum wage (i.e. large size, fixed location, terrible history etc.) that's not where the numbers are. How are we going to enforce efforts to police middle class mothers who hire illegal nannies for their kids? How are we going to police all the farms across the country who hire illegal pickers? How about all the small construction job sites that pick up day laborers? How about all the factories that are NOT sweatshops, in the sense that they pay an illegal wage, but just do work that is just unattractive, like chicken processing. You'd need tens of thousands of inspectors to even make a small dent in the total illegal workers problem in this country.
That's why any effort to enforce the minimum wage and crack down on sweatshops has to be combined with better enforcement of the borders. You can't reduce the supply of sweatshops unless you reduce the supply of illegals. And you can't reduce the number of illegals without reducing the number of sweatshops.
March 5, 2007 1:25 PM | Reply | Permalink
Jail or fine a few, and Presto! You won't have to police them all.
Deterrence is one of the main reasons for punishing crime.
March 5, 2007 2:41 PM | Reply | Permalink
Yes jailing harried middle-class mothers looking for childcare help is a sure winner of an idea!
Your razor-sharp political antennae never cease to amaze.
March 5, 2007 3:27 PM | Reply | Permalink
Every discussion I read about regarding illegal immigration is centered on the immigrants. Let me say that I have absolutely nothing against the folks coming here to find work and wages to help support their families. It's only human to do so. I do find it irritating how much hatred and loathing is directed at these folks. Anyway, I oppose illegal immigration because it hurts American workers but I think it is dead wrong to just try and take punitive action against the illegals who are acting in a rational economic manner and only desire to do better for themselves and their families. The people I fault and the people I think should be the focus of our law enforcement efforts are quite simply the employers. How long do you think it would take for the flow of illegals to cease if, in the next six months, several CEO's of major corporations were imprisoned for their ongoing employment of people they know are not allowed to legally work in this country? Throw in several hundred smaller business operators from around the country and I think the message would come across loud and clear that to hire illegals is an offense that will be taken seriously and that for the employers responsible there will be a heavy financial and personal price to be paid for their violations of the law. Yes, that would mean jailing some rich white guys and some of their henchmen, but I do believe that the example of those once respectable violators of immigration law doing real time in prison awaiting trial would cause the number of employers willing to take that risk to shrink almost to nothing overnight. If there are no jobs for illegals here in the US there will be no illegals in the US. Lets start cracking down on the people who are providing the opportunities for illegals instead of the desperate souls trying only to better themselves and their families because our businesses beckon them to come. After all, do we not also go after and prosecute the people who buy illegal drugs and not just the dealers? Do we not also go after the Johns who give prostitutes their business? We go after drug users and Johns in an effort deny the prostitutes and drug dealers of the profits they are in the game to get by drying up the market right? I don't know why this option is never seriously discussed or considered. I think with the adoption and enforcement of such a policy we would quickly see the policy discussion shift away from illegal labor to labor shortage. Isn't that something that would also turn the economic tables in favor of the American worker?
March 5, 2007 3:34 PM | Reply | Permalink
I posted this somewhere else, but perhaps those here would like to answer these questions:
1. What happens to new illegal aliens who are hired by unscrupulous employers? Will DMI wave its magic wand in that case as well, converting them into legal workers? In that case, won't that swamp our low-wage labor system? I mean, millions of prospective illegal aliens are going to see DMI's plan as amnesty, and they're going to come here. If DMI says they would support deporting future illegal aliens, well, pardon me if I don't believe them. Those who oppose deportations now will almost certainly oppose them in the future.
2. Won't this massive legalization give even more political power inside the U.S. to the Mexican government, leading to a loosening of DMI's rules? Mexico's former foreign minister even said he was going to use U.S. groups to push reforms, and several non-profits have links to that government. Isn't DMI's plan working against attempts to prevent Mexico from sending us even more of their excess population?
2b. Bonus: won't an amnesty give even more power to groups like LULAC, MALDEF, NCLR, etc., groups that currently support illegal immigration? The first is calling for a moratorium on deportations; does anyone seriously think they'll support deportations if "reform" passes? The second has an indirect link to the Mexican government, as do the ACLU, AFSC, and others. The third funds extremists. (Check out the sidebar here: preview.tinyurl.com/32tvw7 , then research that school. )
3. Most of our recent immigrants of all types are low-skill and low-wage. Since DMI promotes how much money we're supposedly making from illegal aliens, wouldn't we make even more money if we stopped immigration by low-skilled labor and concentrated on high-skilled? Aren't DMI's plans favoring importing even more massive amounts of low-skilled labor?
4. Can you list all the groups that profit from importing massive amounts of low-skilled labor? (Hint: one group is not obvious, but might be the most important).
UPDATE: I posted most of this comment here: mydd.com/story/2007/3/5/111331/8112 It's since been deleted, presumably by "DMIer". I guess DMIer realized he or she had no counter-argument, but hopefully Nathan Newman will be different.
Regarding the causality, since I'm not about to run to Blockbuster to find a documentary they probably don't have, did those employers drive down wages knowing beforehand that they could find a ready pool of low-wage workers? Aren't there large numbers of cases that could be found of other employers knowing they can offer low wages because - due to political corruption - they'll have a ready supply of low-wage labor?
March 5, 2007 3:35 PM | Reply | Permalink
See my March 5, 4:07 reply above.
March 5, 2007 4:15 PM | Reply | Permalink
I don't have the power to delete comments on MyDD. The fact that you think I could do that is wacky. I think they must have labled you a troll.
www.dmiblog.com
March 5, 2007 4:20 PM | Reply | Permalink
I don't know any family, or anybody for that matter, who uses an illegal alien for child care or any sort of domestic work in a private home who could not afford to pay, say, $10/hr. Do you? Harried middle-class moms don't hire such people, unless your idea of a harried middle class family is one that spends all their money "just living," to include Pilates, season Redskins tickets, two Lexuses, a shrink for their 9-year old, and an oversized house payment on an oversized house with oversized utility bills. In which case they will just have to deprive themselves.
And if it's child care at a state-licensed centers you're talking about, in my recent experience, at least a substantial majority of them are Americans, and more would be at $10.
Besides, bunky, any fool would know that in a jail or fine situation such as I proposed, a harried mom would get a fine.
March 5, 2007 7:12 PM | Reply | Permalink
"Minimum wages don't necessarily have a big impact since the web allows people to transfer work across the border without a border guard saying no."
We're not talking about call centers for Dell, here. Of the work traditionally done in this country by illegal aliens, almost none of it can be put onto the web. Maybe in 20 years someone can sit in Tijuana or Bombay and control a bricklaying or lawnmowing robot, but not yet.
March 5, 2007 7:16 PM | Reply | Permalink
Just to make this clear, and everyone else can skip over this comment.
Both Drupal and MT allow the non-administrator authors of entries to edit and delete comments, and I'm sure WP does as well. I don't know what MyDD uses, and maybe they don't allow that. I don't see anything at MyDD allowing comments to be "troll" rated, just 1, 2, or 3. I don't know the real life names of "DMIer" at MyDD or ElanaDMI at this site or whether they're the same person.
All I know is that I posted a comment at the MyDD URL given above earlier today, and now it's missing. And, there are two comments referencing me, including one from "DMIer". Yet, there's no comment from me on that thread, making those comments referencing me appear to come out of the blue. All that makes me suspect that it was DMIer who deleted the comment, but, since MyDD has deleted other comments from me in the past, it could indeed have been one of their administrators instead of DMIer. If you find out send an email to hotsopdotcom *atsign* yahoo.com
March 5, 2007 8:20 PM | Reply | Permalink
We're not talking about call centers for Dell, here. Of the work traditionally done in this country by illegal aliens,...
I'm not either... and lots of jobs are going over seas. Boeing, for example, has been shifting it's airplane assembly over to China, medical testing is being done in India, architectural designs are shifting work around the globe as the sun sets, I know people who go to Mexico for cheaper dental work, etc...
And, when you start pushing white collar jobs out, as Ross Perot said, you hear the sucking sound.
Studies have shown that union workers buy at Wal-mart because they want the most bang out of their buck...
March 5, 2007 9:38 PM | Reply | Permalink
Forgive my naïveté but I’d like to suggest perhaps a new approach. It seems to me that if immigrants knew that they were entitled to a minimum wage and that they were well aware that if they worked for the minimum wage or better or informed the DOL when employers tried to pay them less than minimum wage that they would not be threatened with deportation that very likely they wouldn’t work for less than minimum wage. It’s all a matter of expectations. Also, if immigrants were allowed and even encouraged to bring their families with them then the money they earned wouldn’t leak out of the country so much. It seems to me that the idea that money would be better spent informing all immigrants who want to come of their rights to a minimum wage and their responsibilities to participate in the tax rolls rather than building walls and temporarily holding back those that are going to get here eventually or literally die trying might be worth debating.
I know good folks are frightened of losing jobs but so long as the cost of living imbalance between countries is as stark as it is and corporations are infinitely more mobile than either labor unions or government regulators the choice isn’t going to be of whether jobs are lost but how: workers coming in vs. companies going out. In the long run only equilibrium of labor costs across the globe will save jobs and I would guess that that would occur more rapidly if we bring the workforce to where American labor unions and government regulators have access to them. I understand if this is of little consolation to those whose jobs would be lost. This might include mine as I am not in a particularly insulated profession.
Lastly I’d like to express a deep disgust for immigration policy that prefers skilled immigrants over unskilled immigrants. Not only is it blatantly racist but it these are the immigrants who really are going to take the jobs that we’re supposed to be educating ourselves into now that regular jobs are ever harder to come by. Also, these are the folks who are most desperately needed back in their own countries. Not that they shouldn’t be welcome here, but I certainly don’t think they should be preferred.
March 5, 2007 10:07 PM | Reply | Permalink
Some good points there, especially the last. If one thinks about it the conclusion arrives that encouraging highly skilled immigrants does help one sector--employers.
Employers are the beneficiaries of both legal and illegal immigration. Why am I not surprised?
March 6, 2007 5:39 AM | Reply | Permalink
This is the real issue, and why there will never be anything done to prevent illegal immigration. There are too many industries that depend on hiring labor in ways that do not conform with US law.
If existing law were simply enforced, then companies would have to pay the minimum wage, provide workman's comp and obey OSHA regulations. These laws are not enforced for the same reasons that there will be much grandstanding by some Republicans, but no effective action.
March 6, 2007 7:50 AM | Reply | Permalink
Aren't there currently exceptions to minimum-wage, like farm and domestic work? Those need to be dropped.
March 6, 2007 7:55 AM | Reply | Permalink
Yes. Restaurants as well.
March 6, 2007 9:34 AM | Reply | Permalink
So the government is responsible for a conspiracy to undercut your sainted Unions by letting illegal immigrants into the country? I bet Karl Rove is behind it.
OK, so if we bust this conspiracy, you think we should open the borders and pay,...um...how much to any warm body that walks into the country? 10 dollars an hour? 20 dollars an hour? What is your ideal minimum wage for a 21 year old, rural man that can not read or write, does not speak the language of the economy he has entered, and has virtually no technical skills whatsoever. Is $40 an hour too low for a melon picker?
What method are you using to choose these numbers? Your rationale seems to be coerce the government to be used as a blunt tool to force free businesspeople in America to pay ransom to foreigners, just so your Union Racket can negotiate higher wages...not based on merit, just for Union greed. When your wrecking ball ideas kill the economy and we are all in the soup lines, maybe we can find work in a foreign country. See how welcoming they are to us.
March 6, 2007 10:49 AM | Reply | Permalink