Weekly Update: The Economy and Immigration Reform

Given the current state of the U.S. economy, it surprises me that not more is said about immigration on all the major news networks. I see a silver lining during this economic crisis for immigration reform, thinking back to a story in the CQ by Karoun Demirjian, "Immigration: The Jobs Factor." While some might feel that opposition to comprehensive immigration reform (CIR) might become more intense during an economic crisis, there is reason to believe that opposition could actually lose momentum. Politically, the economic crisis might actually provide some cover for CIR negotiations, and Members of Congress might have more leeway to discuss the issue thanks to the focus on the economy.

Additionally, immigration has been an issue of top concern among Hispanics. What I hear from many Hispanic voters who call in to Spanish language radio or tv shows and in my community is that they are skeptical as to whether either candidate will deliver on CIR. Unlike McCain, who has abandoned the Hispanic community on immigration, Obama has been able to make it clear to Hispanics that he is committed to passing CIR, which has largely led to his over 30 point lead among this demographic. However, were he to win this election, I think he would just as easily lose this demographic if he did not deliver on this promise. It's also important to remember that members of Congress up for reelection in 2010 have much more to lose by putting off immigration reform. Polling indicates that voters place the blame of the broken immigration system on Congress by an overwhelming majority. Therefore, taking on the issue would change the perception of a do-nothing Congress.

Tthe mantra that emerged out of the failure of last summer's congressional immigration plan - "secure the borders first" - is losing its momentum. With the current economic crisis leading to the number of undocumented immigrants declining, it's becoming clear that the "magnet" of undocumented immigration is being eliminated. Which gives those of us for CIR an opening to discuss, what comes next?

The next President will have to recognize the challenges ahead:

1) Building a large enough coalition in Congress. Even with the expected Democratic gains in both chambers, he will have to work with Members from the anti-immigrant House Immigration Reform Caucus, which backs enforcement-only, as well as with Members of the Congressional Hispanic Caucus and the "Blue Dog" Caucus.

2) Growing administrative challenges. As stated by Marshall Fitz, Director of the American Immigration Lawyers Association, "It's not clear how much change Sen. McCain could make within DHS, because certainly he would be in a very politically compromised position, given where his party is on these issues." But that's not to say Sen. Obama will have complete flexibility in regards to halting or limiting enforcement measures.

3) The next White House will inherit a badly overburdened immigration court system.

4) Reform costs money. At a time when federal revenue will be contracting on a significant scale. That makes it, in turn, all the more incumbent on either McCain or Obama to forge a renewed political consensus behind such a plan.

Given the candidates' current proposals on immigration, only Sen. Barack Obama would be able to utilize the economic and policy landscape to build new coalitions in Congress and improve the White House Executive management of immigration policies. Sen.McCain has proven that he is unwilling to act in ways contrary to his party, which remains vocally anti-immigrant. So what could a new president do? - He should be proactive, not reactive on this issue:

1) The slowing economy helps prove that the it's not "enforcement only" that has led to a decrease in illegal immigration, "it's the economy stupid!", thus relieving some pressure from this explosive issue, which allows CIR proponents to argue that now is the time to act to take control of the system - before the situation becomes more critical.

2) Develop an economic narrative, and revive the strong coalition of business, community, religious, and academic groups to advocate in Congress. As noted in the piece, businesses have suffered under the "enforcement only" strategy:

As small-business credit seizes up and unemployment increases, going after businesses providing jobs....is not playing well among most constituencies, apart from hard-line immigration opponents. Indeed, lobbyists and managers in other potentially vulnerable companies - such as high-tech concerns and seasonal industries - are already contending that they need access to specialized non-U.S. workers now more than ever.

I would add that under the current administration it's the unscrupulous employers who have been provided "amnesty". Passage of CIR under a new administration would call for interior enforcement as well as border enforcement, while at the same time providing adequate protection to workers and families. Not just immigrant workers would benefit from wage and labor safeguards under CIR - all businesses and workers would benefit.

Others argue that the undocumented drive wages down - the next president should make those individuals understand that by bringing the undocumented out of the shadows we will push wages up, and by making sure they become full-fledged members of our society and economy at a time of economic downturn, we will add revenue to our tax base and to our communities. As illegal aliens become documented, they will earn more and spend more.

We found an interesting piece of information during NDN's latest poll on immigration: There is a positive view of immigrants among the general population, which is conducive to passing immigration reform - 68-69 percent of voters in four battleground states believe that illegal immigrants come to this country to "get a job and a better life", as opposed to the 10-12 percent who believe they come to "take advantage" of our public programs, and 60 percent believe that immigrants take "jobs no one else wants" as opposed to "taking American jobs." And yet, when they are asked whether undocumented immigrants help or hurt the economy, 40-47 percent believe they "hurt the economy by driving wages down." In Nevada, where immigrants comprise a significant percentage of major sectors like construction and services, 47 percent of those polled believe they hurt the economy, while 39 believe they help.

However, Hispanics "get" the economic argument. Among Hispanic voters polled in Nevada for example, 64 percent believe illegal immigrants help the economy, while only 22 percent think that they push wages down.

During such a dramatic economic downturn, CIR will help improve the rights and wages of all workers. Legalization of the undocumented will push wages up and to add to our tax base and it will help businesses by providing a more secure labor force and larger consumer base, which provides common ground with which to join different Congressional and other factions on the side of CIR.

3) Look to the future. Immigration reform would require funding; the next President will have to make Congress and the American people understand that this is an investment in the country's future. While the decrease in illegal immigration might make reform seem less urgent, there is an urgency to reform our broken immigration system, including the visa and temporary worker systems, and deal with future flow. The next president needs to make this clear at a time of economic crisis:

"People see those visas, incorrectly, as enabling immigrant workers to compete with American workers. We'd like to see an administration move forward. Congress is always reactive, instead of looking down the pike, and looking at the demographics of our country. When the economy comes back, we're going to need these workers even more."

4) Modify and deal with backlogs and enforcement measures through executive branch appointments and administrative rulings. The next president will have this ability, which is another reason why there is so much at stake for immigration reform in this election.

5) Work with other countries. As stated in the Democratic Party Platform on immigration, it will be necessary for the next president to work with immigrant-sending nations in order to address the conditions that cause immigration in the first place.

In conclusion, immigration Reform can be repackaged as an item in a broader economic agenda that helps relieve some of the downward pressure on U.S. wages and benefits. Today, undocumenteds account for 5% of the total workforce in the United States. Bringing them all the minimum wage, the ability to join a labor union and other protections guaranteed to all American workers will help remove some of the downward pressure on the low end of the income scale, making CIR a strong companion to the Democratic Caucus's successful effort to raise the minimum wage early in the 110th Congress.