immigration

Regardless of how one feels about immigration policy in the U.S., allowing immigrants to obtain a driver’s license is clearly beneficial for society as a whole. Insurance News recently highlighted a usually unseen business product that highlights why letting illegal aliens operate within the laws of the U.S. is better than closing our eyes and pretending that making it illegal for illegals to drive will stop them from taking to the roadways.

Three states in the nation still allow residents to obtain driver’s licensing without providing proof of citizenship, though there is a movement to change that. However, few states explicitly require insurance companies to ask for proof of citizenship in order to write policies. Presumably, one reason lawmakers have not yet attempted to require proof of citizenship is because they recognize the benefit of having a greater number of insured drivers on the roads. The reality of the situation is summed up nicely by John Rost, founder and president of Fiesta Auto Insurance Co:

“People would like to believe that an undocumented individual wouldn’t buy a car, or if they had a car and didn’t have a driver’s license, they wouldn’t drive to work,” Rost said. “That’s clearly not the case.”

Yet, most states prevent illegals from obtaining licenses. Does this stop them from driving? No. It only makes it more likely that they will not understand the traffic laws and will be more likely to cause an accident.

At least, when uneducated driver (not necessarily through any fault of their own), they might have insurance.

In response to a lawsuit by the Obama Justice Department, a federal judge appointed by Bill Clinton has enjoined parts of Arizona’s new law cracking down on illegal immigrants, finding them to be “preempted” by federal law.  While most parts of Arizona’s law are unwise (like its citizen suit provision), the claim that it violates federal law is just wrong, as I explained earlier.  Federal law prohibits illegal immigration, not state assistance in enforcing bans on illegal immigration, or police queries about arrestees’ immigration status.

Ironically, the Obama administration’s entire lawsuit rests on a legal argument it earlier denounced.  Obama previously depicted federal preemption of state law as a recent right-wing plot (even though the Supreme Court has recognized the doctrine of preemption for 186 years).  Trial lawyers hate preemption because it sometimes blocks lawsuits against businesses over products found to be safe by federal regulators, and Obama issued a memorandum denouncing it as contrary to legal tradition.

But when the Obama administration wanted to challenge Arizona’s law, it suddenly relied upon this very argument it earlier rejected (preemption) to challenge Arizona’s law.  Never mind that Arizona’s law is not, in fact, preempted by federal law, as Supreme Court rulings like De Canas v. Bica illustrate.

Even as the Obama administration selectively takes an incredibly broad view of preemption in the immigration context, to claim that Arizona’s law is preempted by federal law, the administration turns a blind eye to California municipal sanctions against Arizona businesses and merchants.  These California governmental “boycotts” are preempted by the Constitution’s Dormant Commerce Clause and violate the Article IV Privileges and Immunities Clause, as I explained earlier.

It is strange that the Obama administration is more offended by Arizona’s “discrimination” against illegal immigrants than California’s discrimination against fellow Americans.

As Justice Cardozo observed in Baldwin v. G.A.F. Seelig, Inc. (1935), “the Constitution . . . was framed upon the theory that the peoples of the several states must sink or swim together, and that in the long run prosperity and salvation are in union and not division.”

In cases like United Building and Construction Trades Council v. Mayor of Camden (1984), the Supreme Court has said that the Privileges and Immunities clause of Article IV of the Constitution generally forbids states from discriminating against the residents of other states in things like employment on public works.  (Aliens, by contrast, are not entitled to the protections of this provision.)

The dormant-commerce clause bans state discrimination against businesses and commerce from other states (see, e.g., Baldwin v. G.A.F. Seelig, Inc. (1935)),  and although there is a limited exception to that ban for government contracts, that exception does not allow state or local governments to use contracts to promote regulatory aims or meddle inside another state, as opposed to merely promoting a state’s own economic development (see, e.g., Wisconsin v. Gould (1986), in which the Supreme Court barred Wisconsin from excluding a a Delaware corporation from state contracts because of its record of violating the National Labor Relations Act).

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Richard Morrison and Jeremy Lott team up with Marc Scribner, Iain Murray, Alex Nowrasteh and Ryan Radia to bring you Episode 91 of the LibertyWeek podcast. We respond to the President’s anti-anti-government speech, handicap the British elections, examine anger over immigration and chew over the threats to the Google-AdMob deal.

“Representatives at three levels of California government were quick to call for economic measures against neighboring Arizona this week in the wake of its passage of a tough new immigration law. . .On Tuesday, seven members of the Los Angles City Council signed a proposal for a boycott that urged the city to ‘refrain from conducting business’ or participating in conventions in Arizona. Also on Tuesday, San Francisco Mayor Gavin Newsom imposed an immediate moratorium on city employees traveling to Arizona.  And California Senate leader Darrell Steinberg said the state should consider a boycott of Arizona. He sent a letter to Gov. Arnold Schwarzenegger, asking which Arizona businesses and government agencies California does business with.”

California officials are being hypocritical to attack Arizona, given that Arizona’s new immigration measure is actually far less sweeping than one California adopted in 1994, which was invalidated by the federal courts.  (That California law, Proposition 187, would have barred illegal-immigrant children from the schools — something Arizona has not done.)  Even liberal law professors like Jack Balkin who vehemently dislike the Arizona law admit that it may be constitutional, and that it “was deliberately written” to comply with the standards laid down by the Supreme Court’s 1976 De Canas v. Bica decision, which upheld a state’s ban on hiring illegal aliens.  Arizona’s law was drafted by a noted legal scholar and former Bush administration official, and while it contains some unwise provisions and furthers a misguided political agenda, that does not make it illegal.

These boycott calls by California officials are unprincipled and have nothing to do with any belief in freedom of movement.  Mexico has far more onerous immigration restrictions than Arizona does, including harsh prison sentences for illegal immigrants (most of them fleeing the much poorer countries to the south of Mexico, which make Mexico look rich by comparison), and bans on political activity by legal and illegal aliens alike.  But California officials don’t care about those immigration restrictions, and have no problem conducting business with Mexico or visiting it. They reserve their vitriol and boycotts for fellow Americans.

Moreover, for California to impose sanctions against residents of a sister state like Arizona may well violate the Constitution.  As Justice Cardozo observed in Baldwin v. G.A.F. Seelig, Inc. (1935), “the Constitution . . . was framed upon the theory that the peoples of the several states must sink or swim together, and that in the long run prosperity and salvation are in union and not division.”

A variety of constitutional provisions restrict discrimination against residents of other states in various contexts.   In cases like United Building and Construction Trades Council v. Mayor of Camden (1984), the Supreme Court has said that the Privileges and Immunities clause of Article IV of the Constitution generally forbids states from discriminating against the residents of other states in things like employment on public works.  (Aliens, by contrast, are not entitled to the protections of this provision.)

The Equal Protection Clause also sometimes forbids states to discriminate against residents of other states.  (See Metropolitan Life Insurance Company v. Ward (1985)).

The dormant-commerce clause limits state discrimination against businesses and commerce from other states (see, e.g., Baldwin v. G.A.F. Seelig, Inc. (1935)),  and although there is a limited exception to that rule for government contracts, that exception does not allow state or local governments to use its power of the purse to pursue essentially regulatory measures aimed at other states (like attempts to meddle inside another state), as opposed to merely promoting a state’s own economic development (see South Central Timber Development, Inc. v.  Wunnicke (1984)).

One of the problems with current immigration laws is that they raise the price of immigrating legally. Basic economics tells us that when something costs more, people consume less of it.

That’s why so many of America’s immigrants are turning to dangerous but cheap immigration black markets to enter the country. This is a problem with an obvious solution. In today’s American Spectator, Alex Nowrasteh and I make the case that lowering the cost of legal immigration through liberalization will reduce the amount of illegal immigration, and shrink cruel black markets.

Basic economics wins again.

Richard Morrison, Jeremy Lott, and Jerry Brito bring you Episode 90 of the LibertyWeek podcast. We take a look at immigration in Arizona, expanding finance regulations, myths about green energy, porn at the SEC and Jerry’s Mercatus Center technology project, Surprisingly Free.

Alex Nowrasteh and I have a piece in today’s Detroit News arguing that liberalization, not regulation, is the way to shrink immigration’s massive black market. Our main points:

-New rules that came into effect this month, such as raising the minimum wage for H-2A visa holders (that’s the visa for low-skilled agricultural workers) makes cheaper undocumented workers look more attractive for employers. They actually harm legal workers.

-Other new regulations, including background checks, workplace inspections, and mountains of paperwork, cost thousands of dollars per employee. These regulations also make black market workers look more attractive.

-The way to reduce illegal immigration is liberalization. For agricultural workers, that means making their H-2A visas inexpensive, easy to obtain, and keeping the bureaucracy to a minimum.

-When legal channels cost too much in time and money, people will turn to illegal channels every time. That’s how the world works. Getting rid of immigration’s black market begins with admitting that fact.

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Richard Morrison, Jeremy Lott, Greg Conko and Michelle Minton bring you Episode 85 of the LibertyWeek podcast. We put the big vote on health care front and center, while also touching on protests over immigration and legal challenges to the EPA’s greenhouse gas rules. We wrap up with a discussion of WWF’s Earth Hour and its scrappy competitor, Human Achievement Hour.