As the immigration topic is once again debated in the U.S. House of Representatives, the populist branch of the Republican party should accept that economic integration will stimulate, not harm, state budgets.
In November 2014, President Obama announced that he would grant legal protection and temporary work permits to undocumented immigrants who have children who are legal U.S. residents or citizens.
This executive order is not Mr. Obama’s first attempt to reform the immigration system and aid undocumented immigrants residing in the United States. The Deferred Action for Childhood Arrivals (DACA) initiative provides a two-year renewable extension for qualified undocumented immigrants under the age of 31.
The recent executive order from November 2014 was monumental because it extends legal protection to undocumented adults. If successful, it would grant approximately 5 million people temporary legal status in the United States.
The series of unilateral executive orders has since come under fire not from the legislature, but from the courts. On February 16, a Texas federal judge stopped the government from issuing legal protection to undocumented immigrants because it would place an insurmountable burden on state budgets.
And so, Mr. Obama’s plan to place a temporary plug on America’s illegal immigration problem has been indefinitely postponed.
Congress had been relatively quiet on the issue until the judge’s order. Now, the newly formed conservative Freedom Caucus is leading the movement to add pressure within the legislature to push back on Mr. Obama’s executive orders.
However, the Freedom Caucus and other opposition legislators could view the immigration problem as one that impedes America’s economic capacity. Currently, there is a growing informal economy in the United States composed mainly of undocumented foreign nationals. Reform integrating undocumented workers into the formal economic system could increase competitiveness in the housing, service, construction, financial, and agricultural sectors.
Liberalizing immigration policy could subsequently (1) increase consumption in the housing and financial sectors; (2) satisfy a demand for legal labor in the agricultural and service sectors; and (3) substantially increase federal and state revenues:
As more attention will be given to the immigration issue in the coming months, Congress could consider doubling down on Mr. Obama’s executive orders and attack the status quo. Integrating undocumented immigrants could increase the American consumption market and consequently, tax revenue. The budgets of austere and cash-strapped southern states in need of stimulus, including Texas, would surely benefit from the new tax payer market. Both Republican and Democratic constituencies have much to gain from immigration liberalization.
Daniel is a GRI Senior Analyst. He has worked in policy research centered on the political economy of the Andean region in the public, NGO, and private sectors. Daniel holds an MSc in Comparative Political Economy from the London School of Economics, concentrating on Latin American markets.
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