:: Tuesday, February 09, 2010

Home » Blogs » Businesses Join in Fight Against Crackdown on Illegal Immigrants

In December 2007 a federal judge in Oklahoma threw out a lawsuit against a statewide law that forbids hiring illegal immigrants. According to the Greater Oklahoma City Chamber of Commerce, the local businesses now have to deal with the fallout on the economy. It estimates that 20% of the city’s construction labor force – about 2,000 workers – left the city in the four months since December 2007. More than 70 businesses closed in the first two months of 2008 because many of their employees left the state.

When the government gets cracking on illegal immigrants, the main opponents of the government action are the human right activists and other immigrant rights associations. Local law enforcement authorities generally crack down on illegal immigrants in their jurisdiction and the businesses that employ them. Business caught hiring undocumented workers generally have their licenses revoked. Now businesses have started resisting the government attempts to crack down on illegal immigrants.

Businesses and the government have benefited handsomely from the present flow of illegal immigrants into the U.S., but they refuse to reimburse local and state authorities and taxpayers for the related costs. Undocumented workers illegally hired by U.S. businesses contribute more than $8 billion to Social Security and $2 billion to Medicare. All Social Security Administration projections and budgets include, and rely heavily on, the billions in annual contributions from undocumented immigrant workers. Social Security would have a significant solvency problem without this revenue.

There is now fierce political pressure from business lobbies, immigrant rights groups, and members of Congress. This has resulted in a steady retreat by the government from workplace enforcement in the 20 years since it became illegal to hire undocumented workers in this country.

Arizona has some of the nation’s most rabidly anti-immigrant politicians and enacted some stringent employer punishments last year. But a business group has succeeded in gathering signatures for a ballot initiative that could soften some of the stringent punishments.

Riverside, New Jersey, is a perfect example of how the crackdown on illegal immigrants has adversely affected local businesses. In July 2006, the Riverside Township Committee unanimously passed the Illegal Immigration Relief Act, which made hiring or renting property to an illegal immigrant punishable by a $2,000 fine and jail time. Since then, town officials estimate, as many as 2,500 immigrants, or nearly one-third of Riverside’s population, have fled. Downtown merchants and restaurateurs report declines in revenue of as much as 70%. The ordinance was never actually enforced. It was almost immediately tied up in court after 62 Riverside business and property owners filed a lawsuit claiming that the Illegal Immigration Relief Act was unconstitutional and improperly superseded federal authority.

Without the cheap labor of the illegal immigrants, the local economy in many towns and cities would virtually collapse. The irony is that while the nation requires the immigrant’s cheap labor, the nation does not want the immigrant.

Related posts:

  1. Why Immigration Laws Don’t Stop Illegal Workers from Entering U.S.
  2. Why Businesses Are Hiring Even During a Recession
  3. How Immigrants and Foreigners Keep Prices Low
  4. Putting a Number on Illegal Immigration
  5. How to Overcome Our Shortage of Highly Skilled Workers

Tags: ,

Subscribe to Citizen Economists

Vote on Wikio

Bookmark & Share
 

5 Responses to “Businesses Join in Fight Against Crackdown on Illegal Immigrants”

Trackbacks

 

Leave a Reply






Copyright © 2009 Citizen Economists. All rights reserved.