Senate Hearing, 107TH Congress - U.s.-Mexico Migration Discussions: A Historic Opportunity

S. HRG.
107588
U.S.MEXICO MIGRATION DISCUSSIONS: A

HISTORIC OPPORTUNITY
HEARING
BEFORE THE
COMMITTEE ON THE JUDICIARY

UNITED STATES SENATE
ONE HUNDRED SEVENTH CONGRESS
FIRST SESSION
SEPTEMBER 7, 2001
Serial No. J10738
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COMMITTEE ON THE JUDICIARY
PATRICK J. LEAHY, Vermont, Chairman
EDWARD M. KENNEDY, Massachusetts ORRIN G. HATCH, Utah
JOSEPH R. BIDEN, JR., Delaware STROM THURMOND, South Carolina
HERBERT KOHL, Wisconsin CHARLES E. GRASSLEY, Iowa
DIANNE FEINSTEIN, California ARLEN SPECTER, Pennsylvania
RUSSELL D. FEINGOLD, Wisconsin JON KYL, Arizona
CHARLES E. SCHUMER, New York MIKE DEWINE, Ohio
RICHARD J. DURBIN, Illinois JEFF SESSIONS, Alabama
MARIA CANTWELL, Washington SAM BROWNBACK, Kansas
JOHN EDWARDS, North Carolina MITCH MCCONNELL, Kentucky
BRUCE A. COHEN, Majority Chief Counsel and Staff Director
SHARON PROST, Minority Chief Counsel
MAKAN DELRAHIM, Minority Staff Director
(II)
CONTENTS
STATEMENTS OF COMMITTEE MEMBERS
Brownback, Hon. Sam, a U.S. Senator from the State of Kansas ....................... 8
Hatch, Hon. Orrin G., a U.S. Senator from the State of Utah ............................ 6
Kennedy, Hon. Edward M., a U.S. Senator from the State of Massachusetts ... 1
Leahy, Hon. Patrick J., a U.S. Senator from the State of Vermont .................... 73
Specter, Hon. Arlen, a U.S. Senator from the State of Pennsylvania ................. 10
WITNESSES
de Castro, Rafael Fernandez, Professor and Director, Department of Inter-
national Studies, Instituto Tecnologico Autonomo de Mexico, Mexico City,
Mexico ................................................................................................................... 14
Deffenbaugh, Ralston H., Jr., President, Lutheran Immigration and Refugee
Service, Baltimore, Maryland ............................................................................. 56
Donohue, Thomas J., President and Chief Executive Officer, U.S. Chamber
of Commerce, Washington, D.C. ......................................................................... 30
Norquist, Grover, President, Americans for Tax Reform, Washington, D.C. ..... 51
Moore, Stephen, Senior Fellow, Cato Institute, Washington, D.C. ..................... 62
Papademetriou, Demetrios, Co-Director, Migration Policy Institute, Wash-
ington, D.C. ........................................................................................................... 11
Sweeney, John J., President, AFL-CIO, Washington, D.C. .................................. 24
Yzaguirre, Raul, President, National Council of La Raza, Washington, D.C. .... 38
(III)
U.S.MEXICO MIGRATION DISCUSSIONS: A
HISTORIC OPPORTUNITY
FRIDAY, SEPTEMBER 7, 2001
UNITED STATES SENATE,

COMMITTEE ON THE JUDICIARY,
Washington, D.C.
The Committee met, pursuant to notice, at 10:08 a.m., in Room
106, Dirksen Senate Office Building, Hon. Edward M. Kennedy,
presiding.
Present: Senators Kennedy, Hatch, Specter, and Brownback.
OPENING STATEMENT OF HON. EDWARD M. KENNEDY, A U.S.

SENATOR FROM THE STATE OF MASSACHUSETTS
Senator KENNEDY. We will come to order, if we could, please.
It is a privilege to chair this hearing on the important issue of
U.S.Mexico migration. I commend President Bush and President
Fox for their leadership and their commitment to work together to
address this critical challenge. Few issues so profoundly affect the
ties between our two countries.
I look forward to the testimony of our distinguished witnesses,
and I commend Dr. Papademetriou and Dr. Fernandez de Castro,
representing the U.S.Mexico Migration Panel, whose insightful re-
portU.S.Mexico Migration: A Shared Responsibilityhas pro-
vided both of our governments with a basic framework for the mi-
gration discussions.
We know there is broad support in our country today for fair and
balanced immigration reform that will benefit both immigrant
workers and their families, and employers as well. I am pleased to
see labor and business, conservative and liberal groups, faith-based
and secular groups here together in support of comprehensive im-
migration reform. My hope is that we will be able to achieve last-
ing and long overdue reforms, and I look forward to working with
all of you in the weeks ahead.
America has a proud tradition of welcoming immigrants.
Throughout our history, immigrants have contributed significantly
to the strength of our country, and we owe a great deal to Mexican
nationals and immigrants from throughout the world.
Today, many industries depend overwhelmingly on immigrant
labor. Yet, many immigrants are undocumented. They live in con-
stant fear of deportation and are easy targets of abuse and exploi-
tation by unscrupulous employers. Others, seeking to work tempo-
rarily in the U.S., risk danger and even death to cross our borders.
(1)
2
The status quo is unacceptable. It must be replaced with sound

immigration reforms that provide a manageable and orderly system
where legality is the prevailing rule.
These are complex issues, and they deserve careful consideration
and debate. But they also demand immediate attention. We should
not have to wait until next year. We have delayed too long already
in achieving these long overdue reforms.
Last month, many of us joined in supporting a series of prin-
ciples that we hope President Bush and President Fox will consider
as they discuss a fair and balanced immigration proposal.
First, immigrant families must be reunited as quickly and hu-
manely as possible. Family unity has always been a fundamental
cornerstone of Americas immigration policy. Despite this fact, over
one million deserving individualsspouses and children of perma-
nent residents, have endured years of painful and needless separa-
tion. Millions more are waiting for action on their applications for
employment visas.
Two options that merit careful consideration here are signifi-
cantly raising the current family and employment visa ceilings, and
exempting Canada and Mexico from these ceilings.
We should also remove other obstacles in our current immigra-
tion laws that are separating families. Last night the Senate
passed an extension of 245(i), which will allow immigrants to re-
main in the United States while their applications are processed.
This is an important down payment towards reuniting families and
ensuring economic security and stability for individuals and Amer-
ican businesses.
I commend President Foxs support for a legalization program,
and I urge the administration to develop a responsible proposal on
this issue. Adjusting the status of these long-term residents can
provide employers with a more stable workforce and help to im-
prove the wages and working conditions of all workers. No reform
will be complete without an adjustment program.
We should create a fair, uniform set of procedures for all quali-
fied immigrants, not just Mexican nationals. We should seize this
opportunity to create an earned adjustment program that benefits
all deserving immigrants. In addition, we should also develop an ef-
fective temporary worker program to allow migrants, including
those who recently arrived, to work temporarily in the United
States. However, a temporary worker program cannot stand alone.
It must be developed in conjunction with an earned legalization
and family unity priority.
We must also ensure that the temporary worker program avoids
the troubling legacy of exploitation and abuse under past guest
worker programs. A temporary worker program should not under-
mine the jobs, wages, or worker protections of U.S. employees. Indi-
viduals in the program deserve the same labor protections as those
given to U.S. workers.
A temporary worker program should also give participants an op-
portunity to become permanent residents, and eventually citizens,
if they desire to do so. Also, temporary workers should not be
forced to choose between their job and their families. Families
should remain united while a program participant works in this
country.
3
We all agree that our borders must be safe and secure. Over the
last 5 years, Congress has invested millions of dollars to vastly in-
crease the number of border patrol agents, improve surveillance
technology, and install other controls to strengthen border enforce-
ment, especially at our Southwest border. Too often, this border en-
forcement strategy has diverted migration to the most inhospitable
desert and mountain areas, causing increasing deaths due to expo-
sure to the harsh conditions. Desperate migrants are increasingly
being drawn to criminal smuggling syndicates, bringing increased
violence to border patrol agents, border communities, and migrants
themselves.
The status quo is unacceptable. The chief cause of fatalities and
safety hazards at our borders is the poor fit between our immigra-
tion policies and reality. Back and forth migration has been going
on for more than a century. Substantially legalizing this flow will
enhance border safety by permitting orderly entry through regular
ports of entry and by shutting down smugglers markets.
Finally, we must restore due process protection to long-term resi-
dents affected by the 1996 immigration laws and reform the struc-
ture of the INS. We should also review other provisions of the im-
migration law that affect American businesses and labor, especially
the effectiveness of employer sanctions. Many of us are concerned
that the current system of employer sanctions is unworkable for
business, results in discriminatory practices, and fails to address
the worst abuses by unscrupulous employers.
We have a unique opportunity in the weeks ahead to reform our
current immigration system, and create policies to reaffirm our Na-
tions commitment to family unity, fundamental fairness, economic
opportunity, and humane treatment. I look forward to working
with President Bush, President Fox, and my colleagues here on the
Committee and in the Congress to achieve these lasting reforms.
[The prepared statement of Senator Kennedy follows:]
STATEMENT OF HON. EDWARD M. KENNEDY, A U.S. SENATOR FROM THE STATE OF
MASSACHUSETTS
U.S.-MEXICO MIGRATION DISCUSSIONS: AN HISTORIC OPPORTUNITY

It is a privilege to chair this hearing on the important issue of U.S.-Mexico migra-
tion. I commend President Bush and President Fox for their leadership and their
commitment to work together to address this critical challenge. Few issues so pro-
foundly affect the ties between our two countries.
I look forward to the testimony of our distinguished witnesses. I commend Dr.
Papademitriou and Dr. Fernandez de Castro, representing the U.S.-Mexico Migra-
tion Panel, whose insightful reportU.S.-Mexico Migration: A Shared Responsi-
bilityhas provided both our governments with a basic framework for the migration
discussions.
We know there is broad support in our country today for fair and balanced immi-
gration reforms that will benefit both immigrant workers and their families, and
employers as well. I am pleased to see labor and business, conservative and liberal
groups, faith-based and secular groups, here together in support of comprehensive
immigration reform. I am encouraged that John Sweeney, Raul Yzaguirre, Tom
Donohue, and Grover Norquist are on the same side of this effort. I also commend
Ralston Deffenbaugh and Stephen Moore, two consistent leaders in support of immi-
grants. My hope is that we will be able to achieve lasting and long-overdue reforms,
and I look forward to working with all of you in the weeks ahead.
President Foxs visit is an excellent opportunity to reform our immigration policies
to reflect the core values of family unity, economic opportunity, and fundamental
fairness. America has a proud tradition of welcoming immigrants. Throughout our
history, immigrants have had a critical role in the Nations economy, contributing
4
significantly to the strength of our country. We owe a great deal to the hard work
and the many contributions by Mexican nationals, and by many other immigrants
from throughout the world.
Today, many industries, particularly the agricultural, retail, and service sectors,
depend overwhelmingly on immigrant labor. These workers enrich our Nation and
improve the quality of our lives. Yet, many of them are undocumented. They live
in constant fear of deportation and are easy targets of abuse and exploitation by
unscrupulous employers. Others, seeking to work temporarily in the U.S., risk dan-
ger and even death, to cross our borders.
The status quo is not acceptable. It must be replaced with sound immigration re-
forms that provide a manageable and orderly system where legality is the prevailing
rule. We need immigration policies that not only reflect current economic realities,
but also respect our heritage and history as a Nation of immigrants.
These are complex issues, and they deserve careful consideration and debate. But
they also demand immediate attention. We should not have to wait until next year.
We have delayed too long already in achieving these long overdue reforms.
Last month, many of us joined in supporting a series of principles that we hope
President Bush and President Fox will consider as they discuss a fair and balanced
immigration proposal. I look forward to discussing these principles with our wit-
nesses here today.
First, immigrant families must be reunited as quickly and humanely as possible.
Family unity has always been a fundamental cornerstone of Americas immigration
policy. Despite this fact, millions of deserving individuals are awaiting immigrant
visas in order to reunite with their families. Over 1 million are the spouses and chil-
dren of permanent residents, who have endured years of painful and needless sepa-
ration. Millions more are waiting for action on their applications for employment
visas.
Last year, Congress began to acknowledge the predicament of immigrant families.
We enacted limited relief for certain spouses and children of permanent residents.
This was an important first step, but the relief did not address the most pervasive
problems. Working out an effective solution to the family and employment visa
backlogs should be a major part of any reform proposal.
Two options that merit careful consideration here are significantly raising the cur-
rent family and employment visa ceilings, and exempting Canada and Mexico from
these ceilings.
We should also remove other obstacles in our current immigration laws that are
separating families. Strict support requirements often prevent members of working
immigrant families from receiving permanent residence. We should allow respon-
sible discretion, where the evidence indicates that an immigrant is not likely to be-
come a public charge. The bars to inadmissibility based on unlawful presence are
also excessive. They can result in immigrant families being separated for up to ten
years and should be repealed. At a minimum, immediate family members should be
exempt from these prohibitions, and more generous waivers should be made avail-
able for other deserving immigrants. In addition, Section 245(i) should be extended,
so that immigrants can remain in the United States while their applications are
processed.
I commend President Foxs support for a legalization program, and I urge the Ad-
ministration to develop a responsible proposal on this issue. No reform will be com-
plete without an adjustment program. Hard-working immigrants living in the
United States contribute to the economic growth and prosperity of our nation. The
Bureau of Labor Statistics predicts that by 2008, America will have 5 million more
jobs than there will be individuals to fill them. Immigrant workers are, and will con-
tinue to be, essential to the success of many American businesses.
These long-term, tax-paying immigrants should be allowed to apply for earned ad-
justment of their status. These long-term residents can provide employers with a
more stable workforce and help to improve the wages and working conditions of all
workers.
All similarly situated, long-time, hard-working residents should have the same op-
portunity to become permanent members of our community. We should create a fair,
uniform set of procedures for all qualified immigrants. Many of todays undocu-
mented workers are Mexican nationalsbut many others are from Central and
South America, Asia, Africa, and Europe. We should seize this opportunity to create
an earned adjustment program that benefits all deserving immigrants.
In creating such a program, we can borrow from time-tested provisions in our cur-
rent immigration laws, such as registry. At a minimum, eligible immigrants should
be long-time residents who are persons of good moral character, have no criminal
or national security problems, and are eligible to become U.S. citizens.
5
The wider availability of legal status for Mexicans and other nationals has impor-
tant foreign policy ramifications. Immigrants earning permanent legal status are
likely to receive higher wages and send back more funds to their native lands. Re-
cent data indicate that Mexicans in the U.S. send more than $8 billion dollars a
year to their families and communities in Mexico. The remittances sent by Central
American immigrants have contributed substantially to the vital economic recovery
and reconstruction of that region. These remittances are a critical source of funding
for development initiatives that will profoundly improve the lives of persons in those
countries, encourage them to remain at home, and contribute to the well-being of
their nations and our nation.
In addition, we should also develop an effective temporary worker program to
allow migrants to work temporarily in the United States. Any such program should
also benefit migrants who have recently arrived. However, a temporary worker pro-
gram cannot stand alone; it must be developed in conjunction with earned legaliza-
tion and family unity priorities.
We must also ensure that the temporary worker program avoids the troubling leg-
acy of exploitation and abuse under past guest worker programs. A temporary work-
er program should not undermine the jobs, wages, or worker protections of U. S.
employees. Individuals in the program deserve the same labor protections as those
given to U.S. workers, including the right to organize, the right to change jobs, and
the protection of their wages, hours, and working conditions. Anything else would
not only subject migrants to abuse, but would also undermine the wages and work-
ing conditions of U.S. workers.
A temporary worker program should also give participants an opportunity to be-
come permanent residents, and eventually citizens, if they desire to do so. Our cur-
rent immigration laws already provide high-skilled temporary workers with this op-
tion. The same standards should apply to any temporary worker program for other
essential workers. Also, temporary workers should not be forced to choose between
their job and their family. As in the current temporary visa program for high-skilled
workers, families should remain united while a program participant works in this
country.
We all agree that our borders must be safe and secure. The issue is whether our
current enforcement policies are effective. Over the last five years, Congress has in-
vested millions of dollars to vastly increase the number of border patrol agents, im-
prove surveillance technology, and install other controls to strengthen border en-
forcement, especially at our southwest border. Too often, this border enforcement
strategy has diverted migration to the most inhospitable desert and mountain areas,
causing increased deaths due to exposure to the harsh conditions. Desperate mi-
grants are increasingly being drawn to criminal smuggling syndicates, bringing in-
creased violence to border patrol agents, border communities, and the migrants
themselves.
The status quo is unacceptable. The chief cause of fatalities and safety hazards
at our borders is the poor fit between our immigration policies and reality. Back and
forth migration has been going on for more than a century. Substantially legalizing
this flow will enhance border safety by permitting orderly entry through regular
ports of entry and by shutting down smugglers markets.
Controlling our borders is a shared responsibility. Mexican and U.S. law enforce-
ment authorities should continue to develop joint strategies and expand the recently
announced coordinated operations. Effective joint efforts on the border will save
lives, break up smuggling rings, and build new confidence and trust between our
nations.
Sound reasons may exist for beginning the reform of our migration policy with
a temporary worker program for Mexico, but we should do so with a view to expand-
ing it quickly to equally deserving people of other nations. Our closest neighbors in
the Caribbean and Central America should be among the first to benefit from this
expansion.
Finally, we must restore due process protection to long-term residents affected by
the 1996 immigration laws and reform the structure of the INS. We should also re-
view other provisions of the immigration law that affect American businesses and
labor, especially the effectiveness of employer sanctions. Many of us are concerned
that the current system of employer sanctions is unworkable for business, results
in discriminatory practices, and fails to address the worst abuses by unscrupulous
employers.
We have a unique opportunity in the weeks ahead to reform our current immigra-
tion system, and create policies to reaffirm our Nations commitment to family
unity, fundamental fairness, economic opportunity, and humane treatment. I look
forward to working with President Bush, President Fox, and the Congress to
achieve these lasting reforms.
6
Senator KENNEDY. Senator Hatch?

STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM
THE STATE OF UTAH
Senator HATCH. Thank you, Mr. Chairman. I want to commend
you for holding this hearing today. This is a very important hear-
ing, and I believe it will get us on the track of doing what really
has to be done in these areas.
I believe that the discussion we are engaging in today is very
timely and very appropriateappropriate in the sense that, as
President Bush has recently remarked, the issue of immigration
and immigration reform is a complex one. Because it is complex,
I applaud the administrations careful consideration with regard to
a comprehensive plan of action. Resolving the issues at hand re-
quires reflective thought and discussion. These witnesses before us
can, and I am sure will, offer valuable viewpoints to this Com-
mittee.
Immigration has long been one of the important issues within
this Committees jurisdiction and one that has often accompanied
bipartisan consensus. In fact, last night was a prime example of
the type of bipartisan effort to which I refer. I want to congratulate
the President as well as Senator Kennedy, Chairman Sensen-
brenner, Senator Brownback, the ranking member on our Immigra-
tion Subcommittee, along with Senator Kennedy, who is chairman,
Senator Hagel, Senator Kyl, and many others for their efforts to ar-
rive at a strong, bipartisan, bicameral compromise on the so-called
245(i) legislation.
In addition, last year Senator Kennedy and I worked on legisla-
tion supporting family reunification and immigration policies which
serve to keep families intact. Also, we have in recent years success-
fully worked together on expansion of the H1B program, which al-
lows necessary workers to come to and work in the United States
in professional positions. I certainly look forward to working closely
with the administration and members of this body to enact useful
immigration reforms this Congress.
Over the past few months, three primary immigration reform
models have been discussed, those being: one, amnesty; two, a
guest worker program; and, three, the enactment of various
earned adjustment provisions. On each, there are strongly held
views, and I very much look forward to all of the witnesses
thoughts and comments here today.
Before I conclude my remarks, however, I hope you will indulge
me, Mr. Chairman, while I plug the DREAM Act, S. 1291, which
I introduced just last month. This bill, which is similar to legisla-
tion recently introduced by Senator Durbin, is an example of an
earned adjustment provision. The concept of earned adjustment
contemplates the giving of a benefit based on a personal accom-
plishment that benefits society as a whole. Under the DREAM Act,
an alien child who is a long-term illegal resident of the United
States and is otherwise a respecter of the law can earn permanent
residency upon graduation from a qualified institute of higher edu-
cation. While I recognize that the current emphasis is appro-
priately on worker migration, I think that emphasis should also be
placed on the plight of illegally present children and their efforts
7
to better themselves by pursuing higher education. So I look for-

ward to working with Senators Durbin and Kennedy on our respec-
tive bills and try to get something done on this important matter
as soon as possible.
I am very pleased with the work that Senator Kennedy and Sen-
ator Brownback have been able to do together thus far. Senator
Brownback, who is new on our Committee, has really, I think,
jumped into these important issues, these very difficult issues, and
is paying the price to really master them. And I think, Mr. Chair-
man, you are going to enjoy working with him, and certainly I hope
that I can be a constructive and helpful force here for both of you
as well.
So, again, Mr. Chairman, thank you for scheduling this very
meaningful hearing. I look forward to the comments of the wit-
nesses, and I can only be here for a short while. I would ask that
Senator Brownback take my position as ranking on the Committee
for the purposes of this hearing.
[The prepared statement of Senator Hatch follows.]
STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM THE STATE OF UTAH
I believe the discussion were engaging in today is timely and appropriate. Appro-
priate in the sense that, as President Bush has recently remarked, the issue of im-
migration and immigration reform is a complex one. Because it is complex, I ap-
plaud the Administrations careful consideration with regard to a comprehensive
plan of action. Resolving the issues at hand requires reflective thought and discus-
sion. These witnesses before us can, and Im sure will, offer valuable viewpoints.
Immigration has long been one of the important issues within this committees
jurisdiction and one that has often accompanied bipartisan consensus. In fact, last
night was a prime example of the type of bipartisan effort to which I refer. I want
to congratulate the President as well as Senator Kennedy, Chairman Sesenbrenner,
Senator Hagel, Senator Kyl, and many others for their efforts to arrive at a strong,
bipartisan, bicameral compromise on the so-called 245(i) legislation.
In addition, last year Senator Kennedy and I worked on legislation supporting
family reunification and immigration policies which serve to keep families intact.
Also, we have in recent years successfully worked together on expansion of the H
1B program, which allows necessary workers to come to and work in the United
States in professional positions. I certainly look forward to working closely with the
Administration and members of this body to enact useful immigration reforms this
Congress.
Over the past few months, three primary immigration reform models have been
discussed. Those being: (1) amnesty; (2) a guest worker program; and (3) the en-
actment of various earned adjustment provisions. On each, there are strongly held
views and I very much look forward to all of the witnesses thoughts and comments.
Before I conclude my remarks however, I hope youll indulge me, Mr. Chairman,
while I plug the DREAM Act (S. 1291), which I introduced just last month. The bill,
which is similar to legislation recently introduced by Senator Durbin, is an example
of an earned adjustment provision. The concept of earned adjustment con-
templates the giving of a benefit based on a personal accomplishment that benefits
society as a whole. Under the DREAM Act, an alien child who is a long-term illegal
resident of the United States and is otherwise a respecter of the law can earn per-
manent residency upon graduation from a qualified institute of higher education.
While I recognize that the current emphasis is appropriately on worker migration,
I think that emphasis should also be placed on the plight of illegally present chil-
dren and their efforts to better themselves by pursuing higher education. I look for-
ward to working with Senators Durbin and Kennedy on our respective bills and to
try to get something done on this important matter as soon as possible.
Senator KENNEDY. Thank you very much, and I will just mention
for the record Senator Hatchs help in making sure the Committee
was able to report out 245(i), which he referenced earlier. It was
touch-and-go there for a while, but we were able to achieve it, and
I thank our colleagues here. I see Senator Specter, who is a strong
8
supporter of that program. And I would like to recognize Senator

Brownback, who was the chairman of the Immigration Committee
for a little while, and I enjoyed working under his tutelage. The
Immigration Subcommittee has been a small Committee over the
years, but we have been able to get things done. Senator
Brownback has gotten into this issue and become very involved and
very active, and is already a significant leader in it. I welcome his
comments here.
Senator HATCH. Mr. Chairman and Senator Brownback, if I could
just make one comment, thank you for your kind remarks. That
was a big thing yesterday to get that done. I was so impressed with
President Vicente Fox yesterday and his desire to really bring our
nations together in ways that really need to be accomplished. And
I am just very grateful to the two leaders on the Immigration Sub-
committee and the work that they do, and also Senator Specter,
who plays a very, very important role on the full Committee as a
whole.
STATEMENT OF HON. SAM BROWNBACK, A U.S. SENATOR
FROM THE STATE OF KANSAS
Senator BROWNBACK. Thank you very much. Thank you, Senator
Kennedy, for holding the hearing, and thank you for your kind
comments. And I want to thank Senator Hatch as well for his kind
comments and the work he did, and congratulations on getting
245(i) through the floor last night. Your work, that of Senator
Hatch, and the support of Senator Specter and many others have
been invaluable in getting this done.
Mr. Chairman, members, we are a Nation made prosperous in
significant part by the toil of immigrants. America is a Nation of
immigrants who, energized by liberty and resources, have helped
catapult this Nation into the rank of the best and the brightest of
nations. We can be proud of this legacy regarding the extraordinary
contribution of immigrants.
I would like to begin this hearing by acknowledging this invalu-
able immigrant legacy and by asking three fundamental questions:
Who are they? Why now? And what now?
First, who are they? Some come to the United States because of
political or religious persecution, and by their brave commitment to
larger principles, they continue to renew our fierce love of freedom
and justice. However, most immigrants came and continue to come
primarily in search of economic opportunities, striving to make a
better life for themselves and for their families. In short, we are
a more prosperous, more free, more tolerant, and a better Nation
because of the immigrants among us.
Given these observations, I am especially pleased by this hearing
today and this opportunity to discuss immigration reform. I would
like to thank Senator Kennedy for holding this important hearing.
It is time we adjust our current system regarding Mexican immi-
gration. The status quo needs to be changed in many ways that we
will examine today, and we have the opportunity and perhaps even
the responsibility, I would suggest, to begin this difficult but imper-
ative task now.
Why now? Most significantly, we have the leadership of Presi-
dent Bush, who has repeatedly demonstrated his commitment to
9
work for change in partnership with the dynamic new Mexican

Government headed by President Vicente Fox. Moreover, the eco-
nomic and social contributions of immigrants are increasingly rec-
ognized as the profile of this issue is raised. Immigrants strengthen
our culture, as well as help make our economy strong. Importantly,
they pay taxes. Immigrant households and businesses paid an esti-
mate $162 billion in taxes in 1998. In my estimation, that is too
high. I think we should cut taxes even for immigrants as well.
Additionally, immigration helps solve a pressing problem faced
by our Nation involving a dramatic worker shortage. By 2008, ac-
cording to figures released by the Bureau of Labor Statistics, our
total projection of available jobs should be 160.7 million, yet the
total civilian labor force is expected to be only 154.5 million, result-
ing in over 5 million more jobs than people to fill them. In the long
term, it is projected that the tight labor markets will continue as
the baby-boomer generation retires in the next 30 years.
Our current immigration system with Mexico is badly lacking
and has been compared to the elephant in the room which no one
has been willing to acknowledgeuntil recently, that is, when
President Bush began to raise the problems, and he should be com-
mended for his courage and his vision. I believe that such com-
prehensive reform should make legality the norm and rationally re-
flect the growing needs of our business sectors. This is a hard task
which will take tenacity and courage, but it must be done.
The urgent need for reform was recently articulated by six
former Chairs of the Republican National Committee in their re-
cent letter to President Bush. Their letter advocated for a freer
flow of people to accompany the flow of goods and services that
have so benefited the citizens of the United States. They addition-
ally noted that the Republican vision of a society of opportunity,
equality, and commitment to the rule of law is one shared by many
who seek to enter the United States to participate in the American
dream. I believe they are right.
Where the President leads, the Nation will follow. So, what now?
We need an earned regularization for undocumented people who
work, pay taxes, contribute to their communities, and seek Amer-
ican citizenship. Such people should be given the opportunity to ob-
tain permanent residence instead of being forced outside the
boundaries of the law.
Number two, we need a new temporary worker program that dif-
fers from existing programs and respects both the labor needs of
business and the rights of workers. Current immigration law does
not meet the present needs of our economy in many sectors experi-
encing worker shortages. Importantly, a new program should help
deter future illegal immigration by creating a more effective, effi-
cient mechanism through which people can legally enter the United
States.
Third, we should open up family- and business-based immigra-
tion to address presently massive backlogs. Illegal immigration is
symptomatic of a system that fails to reunify families and address
the economic needs in the United States. To ensure a rational and
fair system, we must reduce bureaucratic obstacles and undue re-
strictions to permanent legal immigration.
10
In closing, I look forward to working with the Bush administra-

tion, with my colleagues on this Committee, with Senator Kennedy,
and in the Congress, and those of you who have the solutions for
these very real needs. I particularly look forward to working with
the chairman, Senator Kennedy. The notion that he would serve
under my tutelage is quite an honor that he gave me and noted.
I look forward to working closely with him on this issue that has
great bipartisan support. Ultimately, I hope for a comprehensive
immigration reform that will serve our Nation well. And, lastly, I
ask for the candor of our witnesses. We need your boldness, and
we seek your solutions.
Mr. Chairman, I look forward to working with you on a very im-
portant topic. Thank you.
Senator KENNEDY. Thank you very much.
I want to recognize Senator Specter, who has been very involved
and active on immigration issues. We are grateful for your pres-
ence.
STATEMENT OF HON. ARLEN SPECTER, A U.S. SENATOR FROM
THE STATE OF PENNSYLVANIA
Senator SPECTER. Thank you very much, Mr. Chairman, and I
especially commend you for your timing on this hearing when
President Fox of Mexico addressed a joint session of the Congress
yesterday in a very impressive speech, emphasized the importance
of cooperation between the United States and Mexico, and the issue
of the Mexican migrant workers is a very, very important matter
that has to be addressed as a matter of working out the relation-
ships between our two countries.
There is beyond any question a tremendous need for workers in
America, and our country has a great tradition of being a country
of immigrants, and that is something of special importance to me
personally because both of my parents were immigrants. My father
came to this country as a young man of 18 who wanted to avoid
the czars heel, literally walked across Europe, barely a ruble in his
pocket, didnt know at the time that he had a round-trip ticket
he came steerage to the United States, didnt know that he had a
round-trip ticket to France, not to Paris and the Follies Bergere but
to the Argonne Forest, where he served his country and was
wounded in action. And my mother came to this country at the age
of 6 with her family, settled in St. Joe, Missouri, and they were
real contributors to this country, as immigrants have traditionally
been.
I had a series of town meetings last month, as we do in the re-
cess period, and I must say that there is tremendous concern
among people about what our immigration policy will be. The con-
cerns were expressed on blanket amnesty, and there is a lack of
understanding of the important role that the migrant workers play
in the economy. And what has to be done in my judgment is to
have an assessment, a national assessment made as to our worker
needs and then to structure a rational policy of legalization so that
migrant workers are not in the United States in fear of being de-
tained and they are not looked down upon as being in an illegal
status, so that we can both enjoy the rule of law and have the ap-
propriate assistance from the migrant workers and to carry on the
11
great tradition of America which has been so hospitable to immi-

grants historically.
This is a tough problem. If it werent a Friday, I think you would
see a lot more Senators here. But it is a good day to tackle the
issue because there will be a lot of focus of attention with the trav-
el together that President Bush and President Fox are under-
taking, and I think they will be looking to this Subcommittee and
Committee for some positive answers.
Thank you very much.
We welcome the members of our first panel: Dr. Demetrios
Papademetriou and Dr. Fernandez de Castro. Dr. Papademetriou
and Dr. de Castro were the conveners for the discussions that led
to the Carnegie Endowments important report, MexicoU.S. Mi-
gration: A Shared Responsibility. This report served as the foun-
dation for principles articulated by the Mexican Government as
well as by our own democratic principles. And we will recognize Dr.
Papademetriou.
STATEMENT OF DEMETRIOS PAPADEMETRIOU, CODIRECTOR,
MIGRATION POLICY INSTITUTE, WASHINGTON, D.C.
Mr. PAPADEMETRIOU. Thank you very much, Mr. Chairman,
members of the Committee. I am a bit at a loss of words because
I could actually be testifying and saying the same things that the
members have actually articulated in the last few minutes. But,
nonetheless, I will speak a little bit about the report, then try to
assess where several democratic group principles with regard to
immigration reform fit within the report.
The report reflects 8 months of rather intensive work and in-
volved, in our view, some of the best thinkers, experts on this view,
as well as a number of institutional interests. To give you a sense:
unions senior members from the unions, as well as senior members
from the business community were represented in this consensus
report. I am proud to say that the final product does not really re-
flect too many compromises. Truly, after 8 months of hard work,
a group of often unlike-minded people came to the reported conclu-
sions. On the Mexican side, the report was chaired by Ambassador
Rozental and from the American side by Mack McLarty, whom I
suspect you all know, and by Bishop Nick DeMarzio, Bishop of
Camden, and chairman of the U.S. Catholic Bishops Committee on
Migration.
The panels assessment was that the status quo is simply unac-
ceptable and recommended recasting the relationship between the
two countries, and I quote: from attempting to enforce contestable,
unilateral propositions to carrying out the terms of an agreement.
That is a fundamental change from the way that we have done our
business with Mexico in the past 100 years or so and we hope it
is what the future will bring. The process differs from asserting ab-
solute notions of sovereignty. It is more along the lines of affirming
the provisions of a mutually beneficial negotiated deal. Very sim-
ply, this means that we have now come to a much more mature ap-
preciation of the role of migration in the American economy, now
and for the future. We seek in the report to start a conversation
the same one that you, the members of the Committee, have appar-
12
ently startedabout coming up with an immigration policy that

will be responsive to the needs of families seeking to reunify with
their close relatives as well as to employers looking to engage for-
eign employees under conditions that will make us all proud rather
than recreating the conditions under which previous temporary
worker programs have operated.
I will read a short passage from the report, with your permission,
and then I will go back to oral comments. We said that, It is in-
creasingly recognized that current enforcement policies regarding
unauthorized migration from Mexico are broken. Presently, the
United States maintains a rigid patchwork of laws and mounts ex-
tensive unilateral law enforcement efforts. These have proven
largely ineffective at achieving the intended outcomes of chan-
neling migration through legal entry points and reducing unauthor-
ized migration, while unintentionally, but expectedly, spurring the
growth of a migration black market. As a result, too many mi-
grants die trying to cross into the United States, too many hard-
working immigrants are subject to exploitation, and too many de-
cent employers in the United States are undercut by unscrupulous
competitors who exploit unauthorized immigrants. This is the fun-
damental conclusion of our report.
Now, how does this report fit with the principles? There are five
pillars in the democratic statement of principles for immigration
law. The first one is family reunification. That principle is fully
consistent, fully consonant with our call for additional legal perma-
nent visas. Part of the reason that over the past 15 years unau-
thorized migration has grown almost out of proportion with what
we had seen in prior years is that the backlogs for family reunifica-
tion became too long, and the employment-based immigration sys-
tem, both permanent and temporary, was unwilling to keep up
with the change in demand patterns.
The second principle is earned access to legalization. We also
view the process of legalization or regularizationI think as of yes-
terday the new term is normalization. We are very good at euphe-
misms in this business, as you know so very well, Mr. Chairman
and Mr. Hatch. Essentially what we are all struggling with are
what the Committee will be struggling with is: How to find a sys-
tem of credits, or if you will, of rewards or points through which
people can earn legal permanent status? What is it that we are
going to decide to reward? And I suspect that reasonable people
will roughly come up with some sort of credit or some sort of points
given to people for having been in this country for a number of
years, having played by the rules, having paid taxes, and having
contributed to the economy. Something perhaps that can be meas-
ured by the willingness of an employer to suggest that they will
continue to employ such an individual. Something indicating some
progress, making an effort toward contributing to the social life of
our country, through perhaps learning English, making an effort in
that regard, or engaging the community in which the person lives.
That is a very difficult thing to quantify, but I am sure that people
can come up with a system that does so.
The third principle is border safety and protection. We are con-
vinced that only through active, almost organic cooperation be-
tween Mexico and the United States can the border objectives that
13
you, Mr. Kennedy, set out a few minutes agolegality, order, the
stoppage, the absolute stoppage of violations in terms of the human
rights and civil rights of individuals, and, of course, the protection
of our enforcement personnel, the border patrolonly through joint
cooperation can we achieve that goal.
And then the fourth principle, an enhanced temporary worker
program. I was delighted to read in this particular passage the
kinds of things that we have suggested that should be included in
any temporary worker program, which include a system whereby
those that choose to pursue a path to permanent residence can be
allowed to earn that, and that people who enter the program and
work under something that we call in trade negotiations national
treatmentin other words, treatment that is equal to that of any
other U.S. worker in the labor market.
Finally, you also have here fairness for immigrants and legal
residents. We havent really considered that. I dont think anyone
can take issue with that. But there is one issue that appears in our
report that does not appear in these principles, but nonetheless it
was alluded to in the comments by the Committee members. We
have to think hard about how to take care of those things within
the context of the immigration formula. And we, the panel, think
that if indeed we are to begin a true new bilateral discussion and
resolution of these issues with Mexico, inevitably we are going to
have to get to the point where Mexico and Canada are taken out-
side of the worldwide numerical limits of the U.S. immigration for-
mula. Not only is this going to be able to accommodate the special
things that we wish to do with Mexico, but in addition to that, it
will provide an opportunity for the other countries in the world to
gain a number of visas, 20,000, 30,000, 40,000. This will allow
them to reunify with family members or for employers to be able
to bring in workers at a faster pace.
Finally, what I think at the conclusion of what it is that we are
trying to do we came up with is that we opted for a series of things:
legality over lawlessness and illegality, and for order at the border
versus chaos. We opted for fair economic opportunity with dignity
over exploitation and over human and civil rights violations. We
opted for safety over danger. And we opted for giving employers ac-
cess to the workers they need and the proper conditions for cre-
ating rules that make so little sense that employers are in some
ways invited to break them. This is a reference to the point that
you also made, Mr. Chairman, about rethinking the employer sanc-
tions regime that we have created. And, fundamentally, I think
what the panel agreed to do is to change the way that we conduct
our immigration business. We ask Mexico and Canada to be part-
ners in that effort. That would make the greatest difference in out-
comes for all of us.
Thank you very much, Mr. Chairman.
Senator KENNEDY. Dr. de Castro?
14
STATEMENT OF RAFAEL FERNANDEZ DE CASTRO, PROFESSOR
AND DIRECTOR, DEPARTMENT OF INTERNATIONAL STUD-
IES, INSTITUTO TECNOLOGICO AUTONOMO DE MEXICO,
MEXICO CITY, MEXICO
Mr. DE CASTRO. Yes, thank you very much, Chairman. It is an
honor for me to testify in front of this Committee. I appreciate the
opportunity you Senators are giving me to present this report, writ-
ten by my university, ITAM, in Mexico City, and the Carnegie En-
dowment.
I am convincedand that is what I have said to this invitation
that we are facing a historical opportunity to make migration of
Mexicans to this country an orderly and legal process, and I guess
we should seize that opportunity. That is why I decided to come
here.
I will say that President Fox is right. We need soon an agree-
ment so that in 4 to 6 years every single Mexican in this country
should be legal, should be residing here legally. To me, two facts
explain this historical opportunity.
First of all, there is the emergence of democracy in Mexico. That
is very important. That has created a very important bond between
the two countries, and it seems to me that now you can trust even
more your Southern neighbor. That was yesterdays message by
President Fox.
Second, I will say that President Fox has been unprecedentedly
committed towards migration. He has made migration a priority of
his administration, and he is doing things that we have never seen
before in Mexico. His administration is strongly combating the
smugglers on the border, which is very important. Second, his ad-
ministration is committed to dissuade those Mexican immigrants
crossing throughout the difficult and dangerous zones. That has no
precedence in Mexico. And, finally, I guess, the increase of the
Mexican Governmentthey have increased their commitment to
not allow third-country nationals to cross through Mexico and to
enter into the United States.
Let me go now to the ITAMCarnegie report. Let me tell you
that I have been involved in numerous academic exercises, and I
have never seen that at the outset of an exercise like this or a
project like this there is such a big consensus among academics.
Politics among us might be harder or worse than in this Capitol
Hill. It is not easy to convince academics. We all have our own
ideas, and here the ten Americans and the ten Mexicans working
on this panel, we reached a consensus at the very beginning, and
the consensus was that the status quo was not acceptable. Why
was it not? Because there was a big contradiction between what
NAFTA had done to facilitate the crossing of merchandise and
services across the border and, on the other hand, to have U.S. offi-
cials erecting barriers, erecting steel walls on the border between
Tijuana and San Diego. That was a sharp contradiction.
U.S. policy in the last 5 or 6 years had made Mexican migration
more dangerous for the undocumented Mexicans crossing. That is
why the last year almost 500 Mexicans died on the border trying
to cross undocumentedly. And for two countries that are already
such important economic partners, this is inadvisable. And I guess
I cannot be satisfied in repeating this.
15
Second, it seems to me that these measures to try to keep the

Mexicans to come into the United States, just increasing the border
patrol, have made smugglers more necessary. It really created a
boom for these smugglers.
Finally, I would say that what once was a circular flow of Mexi-
cans, it became now elliptical. Now Mexicans came here and stayed
longer because for them it is dangerous to go back to Mexico and
to try to cross back again to the United States. Our report high-
lights a very important thing, and that is that Mexico is in the last
stage of a demographic transition. That means that in the next 10
to 15 years, we are going to have in Mexico low fertility rates and
low mortality rates, and what is important in terms of migration
is that the workthe number of Mexicans entering into the work-
ing age will be dramatically reduced.
Today, 1.2 million Mexicans enter every year into the working
age. That is the age between 15 and 44 years. And in 10 to 15
years, that pressure will be reduced in half. Only 600,000 Mexicans
will enter into that force.
Let me tell you something. Seventy percent of Mexican migrants
belong to that age between 15 and 44 years old. So what the Mexi-
can proposal in a way is proposing to the U.S. is to bridge a gap
for the next 10 to 15 years. In 10 to 15 years from now, we wont
have a demographic pressure in Mexico.
Our report has four principles. Demetri already referred to them,
but let me give you my perspective.
First of all, yes, indeed, we need to work in the border in a com-
mon fashion. It is a common border, so that is why we need a
shared responsibility.
Second, we need the regularization of the 3 to 3.5 million Mexi-
cans who are here undocumented. If we want to make of this an
orderly and legal process, we have to deal with it.
There are two other options, just to forget about them, to put
them down the carpet, or to deport them. But I believe those two
options are not admissible for the United States and for Mexico.
The third principle is we need a temporary worker program. The
bracero experienceand we had a lot of discussions in our panel
now we know that we have the lessons of the bracero program that
was in effect from 1943 to 1964. It is that now we need full rights
for the Mexicans coming into that temporary worker program.
And the fourth principleand to me this is the single most im-
portant oneis to develop economic programs regionally. We have
to target those zones in which most migration is originated, and
this should be a shared responsibility. Yes, we are talking about a
different position of the two countries regarding migration.
I wrote 10 years ago my Ph.D. dissertation in the political
science department in this country, at Georgetown University,
about how to manage U.S.Mexican bilateral affairs. And after
studying all different ways to manage U.S.Mexican affairs, I came
to the conclusion that the best way to manage bilateral affairs, the
very complicated issues as migration, is by establishing legal
frameworks that order these issues. That is the NAFTA lesson. Be-
fore NAFTA, 12 to 13 years ago, Mexico was the country in the
United States with the most demands for unfair trade practices.
Nowadays we still have problems, but NAFTA has allowed both
16
Mexicans and Americans to manage trade issues. And NAFTA has

given certainty to the players. That is what we have to do in mi-
gration, and that is what we have to do regarding drug trafficking.
Thank you very much for this opportunity.
Senator KENNEDY. Thank you very much. That was a very help-
ful summary of the report.
Let me ask you first the question, Demetrios, and focus on one
element for a minute, that is, the concept of exempting Mexico and
Canada from the visa limits. Could you elaborate on the concept
specifically addressing the following? Is there an historical basis for
the exemption? And what would be the effect on the other nation-
alities in the backlog? And would such a policy change the result
in a significant increase in actual immigration to the United
States, or would many of those who would benefit by being able to
come legally have come to the U.S. illegally?
Mr. PAPADEMETRIOU. Thank you, Mr. Kennedy. There is actually
historical precedent of treating the Western Hemisphere differently
from the rest of the world. In fact, the Western Hemisphere was
not folded into the worldwide system of immigration, as you may
recall. You were the Chair at the time in 1978. So there is prece-
dent over there.
But I think the most compelling reason for this is the integration
of the two economies and the two labor markets. There has been
an extraordinary convergence that has taken place over the past 10
or 15 years that is not only limited to Mexico. Let me give you a
datum that I think certainly most people find a bit shocking, I
guess.
We are focusing on Mexico and Mexicos participation in our
economy and our labor market. But in the past few years, the par-
ticipation of Canadians into the American labor market has grown
at a pace, at the legal end of it, that is much higher than that of
Mexico. Over 100,000 Canadians last year entered the United
States and took occupations legally, the vast majority of them,
about 70,000 or so, through the special visa that was created in the
NAFTA. Mexicans, of course, get most of their visas through the
permanent family immigration visa. But in the last few years, we
have seen significant increases of Mexicans receiving the L visa,
and also both the H2A and H2B visas. It is inevitable that the
economies will grow closer together. NAFTA guarantees that.
So making certain that we find a way to accommodate in a way
that makes sense for everyone would be indeed the way to go. That
would create opportunities in both the permanent and the tem-
porary system for other countries. It would liberate about 20,000,
25,000 or so visas in the family, the exemptthe controlled family
part that Mexico now uses, about 10,000 to 15,000 per year that
Canada now uses, and for temporary visas that have numerical
caps, it would create a big gap that then can be filled by other
countries.
It is a different question as to how large the numbers need to be,
how large the numbers should be or what have you. But if you
have, as you know very well, a system that is robust, that has the
right elements in it, we can certainly make it, control it, in a way
that will actually be consistent with economic conditions in the
United States and other things that we wish to attach to it.
17
Senator KENNEDY. So your point is that beyond just benefiting

Canada and Mexico, that there would be the opportunities for in-
clusion of others as well.
Mr. PAPADEMETRIOU. Yes, sir.
Senator KENNEDY. And we could develop a process and a system
which it would not only be perceived as fair, but actually be fair.
This is something we would have to give some thought to. You
have given us a general framework on that, but it is something
that I think a lot of people havent considered, this point about the
displacement and the new opportunities that would result.
Do you think that such a policy would result in a significant in-
crease in the actual amount of immigration, or would many of
those that would benefit be able to come legally rather than ille-
gally? What is your sense?
Mr. PAPADEMETRIOU. My sense is that if we create legal channels
that make sense, most people will utilize those channels. And if we
remove the perverse incentives of the current system, which are to
go through the back door or the side doors, and replace them with
things that make sense, people actually will come and some of
them will go back. We tend to think of immigration as exclusively
a one-way process. The historical standard was almost 50 percent,
but even today, in reality, about 25 percent of the legal immigrants
that come here actually leave at some point in the future. We are
infatuated by the fact that the legal number plus the illegal num-
ber might be whatever, 1.3 million, 1.1 million, depending on how
you count and where your political convictions are. But, in reality,
they are that minus about 20 to 25 percent.
I think we can accommodate the additional numbers because
fundamentally we have not seen in the 1990s any relationship be-
tween higher numbers and somehow lower economic or greater so-
cial cost, lower economic performance, or anything like that.
Senator KENNEDY. Dr. de Castro, I saw you raise your and.
Mr. DE CASTRO. Yes, I wanted just to mention that the numbers
of Mexican migration coming into the U.S. are not very sensible to
the conditions in the United States, to the legal conditions or to the
difficulties in the border. In the last 5 years, there is approximately
350,000 Mexicans coming into the U.S., and that is regardless of
how difficult it is to cross. And it seems to me that if you com-
pletely open the border or you completely close it, you still are
going to have those numbers because those are the ones who need
to have a better salary than in Mexico. They are still seeking for
better salaries. Most of them, they have jobs in Mexico, but it is
the disparity that brings them to the U.S. labor market.
Senator KENNEDY. I want to try and follow 7-minute time, and
mine is just about to run out. I want to ask you, you have indicated
a point system which could be developed to earn legal status. Have
you developed such a system? Would you submit it later on? Could
we inquire of you how that could be structured?
Mr. PAPADEMETRIOU. I would be happy to work with staff on
this, Mr. Chairman.
Senator KENNEDY. Many have argued that reform cant give un-
documented people an unfair advantage over those who have
played by the rules and waited in line. How do your recommenda-
tions address that concern?
18
Mr. PAPADEMETRIOU. Well, I guess the way that I would handle

itnobody made me an immigration czar or a Senator. The way
that I would handle it is I would allow people who have close fam-
ily relationships and are waiting in the backlogs to actually come
in sooner than anybody else. And I think Mr. Hatchshe has left
now. Mr. Hatchs law from last year creating a V visa may actually
facilitate the movement of people from the backlog coming to the
United States legally with full labor market rights, even if they
have to wait for some years, I would hope fewer rather than more
years, before they can get their green card.
I think that might be a way that we might be able to handle both
the people who are waiting, again, in the closer family relation-
ships. I am not going to suggest that somehow the siblings pref-
erence of 2.5 million people somehow should be waved in, you
know, in a matter of a year or two. But I would suggest that this
is one way to handle it.
And this point system, it is actually an unfortunate term, but
this system of building credits is by necessity going to take longer
than any kind of action through a V visa-like system.
Senator KENNEDY. Senator Brownback, we are trying to follow
about a 7- or 8-minute time. We have some flexibility, if that is all
right.
Senator BROWNBACK. Yes, that would be just fine. Thank you,
Senator Kennedy. Excellent testimony, very good report, and I ap-
preciate your presentations here today.
One thing that has been raised often is, as people kind of attack
this idea of a normalization, regularization, whatever you want to
call it, it is just a blanket amnesty, that is what this is. Would ei-
ther or both of you care to distinguish between what you are pro-
posing and a blanket amnesty program?
Mr. DE CASTRO. Yes, I would say that the way we are envisioning
this regularization is a gradual process in which you might be re-
warding the effort of those Mexicans or foreign nationals to assimi-
late to the society, to pay taxes, and we see this as a gradual proc-
ess in which you have to develop, I guess, very imaginative ways
to make sure that you reward the effort of those migrants to be
here and to contribute to this society.
Mr. PAPADEMETRIOU. Mr. Brownback, the amnesty that we gave
in 1996, the legalization program
Senator BROWNBACK. 1986.
Mr. PAPADEMETRIOU. I am sorry, 1986. Okay. I meant to say
that, 1986. It was indeed a blanket amnesty. People who had been
here for a number of years, since the beginning of 1982, and had
essentially played by the rules in terms of not breaking the law
and had stayed here continuously were able to gain legal perma-
nent residence over a period.
An earned legalization program would invite people who are
here, who are contributing, who are paying taxes, to try to earn a
status that was given away to them in 1986. There is a big dif-
ference in my mind between the one and the other, but there is an-
other difference, sir.
In 1986, we thought that we could do things on our own. It was
a unilateral act that fundamentally said we are going to give you
these visas, willingly we are going to now accept the fact that
19
about 3 million additional people remain in the United States ille-

gally. That was the estimate of the population between 1/1/82 and
November of 1986, that 5-year period. And we pretended that by
doing things at the border unilaterally or by beating up on employ-
ers unilaterally, again, we were going to somehow stem the future
entry of undocumented workers.
What we are discussing here is an opportunity to do things dif-
ferently, not only enlist Mexico in trying to take out of the picture
all of the bad actors who systematically break our laws and, I
think, attempt to defeat both American democracy and Mexican de-
mocracy by creating in a sense a parallel state, as it were. But
more than that, by accepting the fact that our economy simply
needs and can use much larger numbers of immigrants, perma-
nent, temporary, than what we are giving them through the immi-
gration formula; and accepting that American families and the
families of green card-holders should also reunify at a faster rate.
I cannot think of too many people who think that separating a wife
from a husband or a husband from a wife or parents from children
for 6 or 7 years, which is what happens in our second preference,
makes sense to anyone.
Senator BROWNBACK. No, it doesnt. It doesnt make sense to any-
body, and it forces people to do things illegally that they would not
otherwise.
To me there is a fundamental difference. I would ask both of
your or either of you, if you know this: What was the number of
undocumented workers we had prior to 1986? And what is the level
of undocumented workers that we have now? I think you cited that.
Mr. PAPADEMETRIOU. Yes. In 1986, our best estimate was that we
were having somewhere between 5 and 6 million people. We gave
legal status after the process to about 2.8 million people. Presum-
ably we were left with something like 3 million people.
Today, the estimates that most people who look at the data very,
very, very seriously give are that the number was somewhere
around 6 million people.
Now, the Census has come up with numbers that are forcing a
certain re-examiNation of that. What we dont know is whether
these people came since the last Census, the additional people, or
they were here but uncounted in the previous Census, because the
Census is indicating that the number might be as high as 10 or 11
million. The question is, againit is not all undocumented, but the
number, the difference between what we should be finding and
what we are finding, the question is how many of those people are
undocumented rather than simply people who were not recorded in
1990. And we dont really know that. It will be somewhere between
6 and 8, 8.5 million people. Jeff Passel at the Urban Institute, who
really lives by the numbers, might be a much better person to an-
swer that than I would, sir.
Senator BROWNBACK. We will do that. The reason I ask that is
that I think what you are putting forward, what I have discussed
of an earned legalization process, is far different than what an am-
nesty program is. An amnesty program is a one-shot program that
we thought in the wisdom of the time was going to solve our un-
documented worker problem at that time. Instead, in a number of
peoples minds, it actually created a perverse incentive to say,
20
okay, if you can get here to the United States and just stay here
for a while, at some point in time you will get an amnesty. Where-
as, I liked really Dr. de Castros statement about thiswhat you
are talking about here is more of a system to manage what is tak-
ing place in this country, and that we would hope once going into
this that this would not be something that every few years we
would look at an amnesty program; but, rather, okay, this is a sys-
tem where we manage the flow.
I am saying things, but I am hopeful that you are in agreement
with that conclusion. Would that be correct?
Mr. DE CASTRO. Very much. That is really the whole purpose of,
I guess, the final recommendation, is that we should treat this very
complicated phenomenon in a comprehensive way. And that is why
I guess the Mexican Government has bought this recommendation.
They are talking about an integrated package of immigration. We
believe it is very important in the report. We discussed this at
length, and we came out with the conclusion that in order to solve
this, we need a whole package. And this isif you see some simi-
larities between the Mexican Government and our report, I can as-
sure you that the report was written first, not the Mexican Govern-
ment came with that proposal.
Senator BROWNBACK. A final question. As one of you notedI
think, Dr. de Castro, you didthat this has created a heyday for
smugglers into the United States. By our Governments estimates,
CIA estimates, there are somewhere around 700,000 people being
moved between borders of countries around the world, much of that
number actually, the 700,000, is generally sex trafficking, human
trafficking, for a number of illicit purposes. It has been a very dark
side of the globalized economy. But what they also stated was the
third leading income source now for organized crime is human traf-
ficking, behind drugs and gun-running, and they are projecting for
it to grow.
Are your numbers in sequence with that when you say it creates
a heyday for smugglers in the amount of organized crime that is
involved with this?
Mr. DE CASTRO. What we have observed in the U.S.Mexico bor-
der is an increase of these bands of smugglers. We do not have the
number, but what I wanted to comment on this is that I am very
much encouraged by the maturity of the relationship between the
two administrations. It seems to me that now even in law enforce-
ment, you are going to see the Mexican Government willing to co-
operate, taking the heat becausethat is true in the past some-
times we took a position very nationalistic and we were unwilling
to cooperate in certain aspects with U.S. authorities. Now, I am
very much encouraged on this. I am seeing a Mexican Government
that finally, when they agree with the U.S., they say so. And they
find ways to disagree. I am truly encouraged by this new attitude
of the Mexican Government. I have been studying U.S.Mexican re-
lations for the last 10 years. It has been my passion. And finally
you have a Mexican Government that sometimes is taking political
eat in Mexico for being so open to the United States. Yesterday
Vicente Fox took some heat because of his words he said in Con-
gress. It is a new President. He is someone who truly sees oppor-
tunity in this bilateral relationship, and that is why I really com-
21
mend you to try to seize this opportunity and hopefully to have a

migration agreement soon.
Senator BROWNBACK. Thank you. Thank you, Mr. Chairman.
Senator KENNEDY. Senator Specter?
Senator SPECTER. Thank you very much, Mr. Chairman.
Thank you, gentlemen, for your very helpful testimony and for
this report on MexicoU.S. Migration: A Shared Responsibility. I
think that this should be widely distributed. It would lend some
substantial understanding to the issue.
Dr. de Castro, you said in your testimony here this morning that
within 15 years there should be an easing of the pressure of Mexi-
can migration into the United States. This migration has been
going on for a very, very long period of time, obviously because of
the advantages of the U.S. economy and the better jobs here.
What is your basis for saying that there is an expectation that
after 15 years there will be an easing or perhaps no longer this
kind of a problem?
Mr. DE CASTRO. Yes, it is one of the mostit is very difficult as
an academic, and you know this as a policymaker, to try to under-
stand what causes migration. But what I was saying in my testi-
mony is that finally Mexico is finishing up its demographic transi-
tion. The U.S. did it 40, 50 years ago. Mexico is only doing it right
now. So that means that at that working age there is going to be
fewer Mexicans, dramatically fewer Mexicans now entering into
that working age. At least the demographic pressure is going to
ease in the next 10 to 15 years. I dont know about economics. I
prefer to not do economic projections or forecasts because econo-
mists are usually wrong, and my university is very well known in
Latin America for its economics department. They are always
wrong. So that is why I am only talking here about demographic
projections, and on that we are certain Mexico is in the last stage
of its transition, demographic transition.
Senator SPECTER. Dr. Papademetriou
Mr. DE CASTRO. Now, if yousorry, Senator. Now, for example,
Mexicos growth rate is 1.7, and that will be dramatically reduced
in the next years, and because now it is only 1.7, that would allow
us to project that in 10 to 15 years those Mexicans entering into
the age 15 years old or older, it is only going to be half of what
they are right now. Sorry to interrupt you.
Senator SPECTER. Dr. Papademetriou, I would be interested in
your response to the issues raised by so many of my constituents.
I had said that in the month of August and travels through town
meetings this issue of illegal immigration comes up again and
again, really sort of surprising to me that it does so. We have had
the North Atlantic Free Trade Agreement, so-called NAFTA, and
there is very, very substantial unrest that I find about it, tremen-
dous labor opposition to it in my State. I supported NAFTA be-
cause I think that, notwithstanding temporary dislocations, in the
long run it will be beneficial. It will stimulate the economies of
both countries, and in the long run, the United States will be bet-
ter off if we have a Mexico which is much strong economically. But
I come back to a point of substantial unrest among the people
about it.
22
Now, you have the well-known economic downturn which is grip-

ping this country today, and while analytically I think it is sup-
portable that the Mexican migrants are important, are playing an
important role in filling jobs, what is your response to the people
who are losing their jobs, are concerned about NAFTA, and then
the suggestion which Dr. de Castro makes to legalize 3 to 3.5 mil-
lion illegal immigrants?
Mr. PAPADEMETRIOU. Thank you, Senator. Lets start with your
last point, this 3 or 3.5 millionwhatever that number might be
of people who are already herethey are working here. To suggest
somehow that if we removed that population or part of that popu-
lation jobs would become available simply to U.S. workers, by that
I mean anyone who is in the United States legally and has an op-
portunity to take those jobs, falls under
Senator SPECTER. I agree with you that that is the rational re-
sponse. But how do you respond to the concerns of people that say
we play by the rules and they dont, and why should we consider
this legalization or amnesty?
Mr. PAPADEMETRIOU. Well, playing by the rules is an extremely
important argument. I never downplay it because we are com-
mitted as a country to playing by the rules, to obeying the law. But
I have not heard in the past 15 or 25 years that I have actually
been studying these issues an alternative to what it is that is being
discussed here today. I have not heard anyone that suggests that
somehow we are going to take these people and kick them out of
the country because we tried that, as you may recall, in the 1950s
and we created extraordinary difficulties for American families and
U.S. citizens.
So this is about facing the facts and trying to come up with a
reasonable way through which people who have been contributing
to the economy and, indeed, have become part and parcel of Amer-
ican communities, the communities in which they live, to earn the
right to stay here. That is why we are putting the emphasis on
earning that right.
Some people may choose not to try to or may not qualify for that,
and that would requirewhen the conversation advancescon-
versation about what is the best means to deal with those people
who either dont qualify or choose not to play by the rules. Because
ultimately, at the end of the day, you know this at least as well
as I do, we are also going to have to rethink how to have a better
law that is enforceable to try to ferret out the employers and people
who continue not to play by the rules.
Senator SPECTER. Dr. de Castro, yesterday Mexican President
Fox talked about having the Mexican migrant workers returned to
Mexico. And I note in your report there is a statement that, The
Fox administration has shown increased interest in encouraging
Mexican immigrants to increase their remittances to Mexico,
which shows an interest on the part of the Mexican Government
in having migrant workers in the United States who earn funds
and can remit.
The topic of the report is MexicoU.S. Migration: A Shared Re-
sponsibility. To what extent, Dr. de Castro, does Mexico seek to
prevent Mexican migrant workers from coming illegally into the
United States as part of a shared responsibility?
23
Mr. DE CASTRO. I will say as much as the government can do it.

It wont be easy, but there are ways to do it. For example, what
Mexico, what the government is already doing is discouraging mi-
grants to cross through dangerous zones. By the Mexican Constitu-
tion, the government cannot impede Mexicans to go out of the
country, but there are ways to do it, by developing economic re-
gions, by regulating airlines coming towards Tijuana. There are
ways to do it, and they are willing to do it. It wont be easy. But
I see the commitment.
What we are talking about the remittances there is the commit-
ment of the Fox administration to reduce what migrants have to
pay to send money back to Mexico. They are very committed to it.
There are very few firms doing this. One of them is Western Union,
and it is very expensive for them to send money to Mexico. And it
is not only a problem for Mexico, but it is a big problem for Central
America. And that is where they are trying to come up with new
ideas in how to do this in a cheaper way, and also how can they
helpor put some more money by the government or international
institutions that will truly help these remittances to be used as de-
velopment money, not only for consumption.
If you will allow me to say, when you were talking about
NAFTA, it seems to me that NAFTA stops short in creating a
mechanism to help those affected by NAFTA, and it seems to me
that now, in retrospect, when we look at NAFTA, NAFTA made a
big mistake, and that is, they took out of the negotiation migration
and energy. Those are the two topics that we are negotiating now,
and it is very important, if we are truly committed to having a
North American economic region, we have to have an agreement on
migration as well as on energy. It wont be easy for Mexico because
it is very sensible to the Mexicans to talk about energy. To us it
is very close to our nationalistic heart. But now the Mexican Gov-
ernment is having conversations with the U.S. Government regard-
ing energy.
Senator SPECTER. Thank you very much, gentlemen. My red light
is on. I would just like to say that I am not going to be able to stay
for the entire hearing. I do think it is very productive, and I will
be studying the transcripts and looking for some answers to these
tough issues.
Thank you very much. Thank you, Mr. Chairman.
Thank you. We will submit some additional questions. You have
been very, very helpful, and we are going to be calling on you for
guidance as we move ahead. Thank you very much.
Mr. PAPADEMETRIOU. Thank you, Mr. Chairman.
Mr. DE CASTRO. Thank you. I will leave a copy in Spanish.
Senator KENNEDY. That will be very helpful.
I would like to welcome our second panel: Mr. John Sweeney,
president of the AFLCIO; Thomas Donohue, president and CEO
of the U.S. Chamber of Commerce; Raul Yzaguirre, president of the
National Council of La Raza.
It is an important occasion when we have labor, business, and
immigration leaders stand together in support of legislative reform.
Although their presence on this panel speaks for itself, we look for-
ward to their testimony. We are very grateful to all of them for
24
joining with us here this morning, and we will start with you, Mr.
Sweeney, if you would be good enough.
STATEMENT OF JOHN J. SWEENEY, PRESIDENT, AFLCIO,
WASHINGTON, D.C.
Mr. SWEENEY. Thank you very much, Mr. Chairman and mem-
bers of the Committee. On behalf of the AFLCIO, thank you for
the opportunity to discuss one of the most important issues we
face, our Nations immigration policies. I am happy to say that I
just came from a meeting with President Fox to discuss this very
same issue.
Members of the Committee, workers in the United States are, as
you know, a rich tapestry of every race, gender, ethnicity, and im-
migration status. We have our differences, but we share common
values and hopes: better lives for our families, the opportunity to
hold good jobs in safe environments, and work that accords us dig-
nity and respect, free from discrimination.
These fundamental aspirations of the human spirit do not distin-
guish between workers based on immigration status. Nor, we be-
lieve, should we.
The United States is a Nation of immigrants, yet we daily visit
injustice upon new arrivals to our shores, a cruel irony not lost on
those of us who are the children of immigrants. My own parents
came here from Ireland. My personal feelings are greatly influ-
enced by their experiences. Indeed, it was those experiences that
drew me to unions. I saw firsthand the powerful role immigrants
play within unions and the equally powerful role unions play in im-
proving the lives of immigrant workers.
Today, growing numbers of immigrants are once again winning
a voice at work through unions. We are honored to welcome them
to our ranks. In recent statements, the AFLCIO Executive Council
has placed our movement squarely on the side of immigrant work-
ers. We believe the principles outlined in those statements should
inform national policy as well. First and foremost, undocumented
workers and their families should receive permanent legal status
through a new legalization program that extends to all the undocu-
mented among us regardless of their country of origin. It is unac-
ceptable that upwards of 8 million people live and work here with-
out the full protection of the law, constantly at risk of exploitation
and abuse.
Our current policy ignores the fact that many undocumented
workers contribute to the national economy, have children who are
U.S. citizens, and are long-term, law-abiding members of their com-
munities. As a matter of fundamental justice, undocumented immi-
grant workers who have worked hard, paid taxes, and contributed
to their workplaces and communities should be allowed to adjust
their status to legal permanent resident.
Second, the current system of employer sanctions and the I9
verification should be repealed and replaced with a system that
targets and criminalizes business behavior that exploits workers
for commercial gain and that provides protections for undocu-
mented workers who file well-grounded complaints against their
employers. I think no one can credibly dispute that the current sys-
tem has failed. It encourages manipulation by unscrupulous em-
25
ployers who hide behind it to exploit and intimidate workers. It has

not deterred the flow of undocumented workers into the United
States and almost no employer ever experiences a penalty or sanc-
tion.
Third, immigrant workers should enjoy full workplace protec-
tions, including the rights to organize into unions and to seek vin-
dication of their workplace guarantees free of employer intimida-
tion. Undocumented workers typically fall through and outside the
Nations worker protection safety net. The constant threat of depor-
tation serves as a velvet hammer employers can wield not only to
deny basic rights, but also to deter these workers from filing com-
plaints. Since most labor standards investigations arise from com-
plaints, employers can deny rights and protections for undocu-
mented workers with virtual impunity or, almost as perverse, call
the INS to report undocumented workers after learning of orga-
nizing campaigns or labor standards complaints.
Instead of punishing workers, immigration and labor standards
policies should specifically penalize employers who break the law
and, just as specifically, protect workers who uphold the sanctity
of our legal system by pursuing their labor and employment rights.
Finally, guest worker programs should be reformed but not ex-
panded. We do not agree with policymakers who argue that a new
guest worker program is the antidote for our current failed immi-
gration policies.
As I noted, the first order of business should be to give access
to permanent legal status to immigrants who have been living and
working in this country, paying taxes, and contributing to their
communities. We are deeply troubled by proposals to lift restric-
tions on recruiting and hiring low-wage, low-skilled foreign workers
while conferring only limited protections on those workers and pro-
hibiting them from seeking permanent residency. Any temporary
worker program must ensure full workplace protections for tem-
porary workers, must include a path to permanent legalization for
those who want it, and must not be based on a temporary workers
relationship to a single employer. Such a program must also in-
clude a real and meaningful labor market test to guarantee there
are no U.S. workers for the jobs.
I will close much as I began: Union members know that the for-
tunes and futures of all workers in the United States are linked.
If undocumented workers have no practical choice but to accept
sub-standard pay and working conditions, their U.S. counterparts
will eventually be relegated to such conditions as well. We know
that when we act to strengthen protections for the most vulnerable
among us, we build a movement and a system that is stronger for
all of us.
Thank you.
[The prepared statement of Mr. Sweeney follows:]
STATEMENT OF JOHN J. SWEENEY, PRESIDENT, AFLCIO, WASHINGTON, D.C.
On behalf of the AFLCIO, thank you for the opportunity to be here today to dis-
cuss one of the most important issues we face as a Nation and a people, our policies
with respect to immigrants and immigration. The scores of unions that make up the
AFLCIO represent over 13 million working men and women of every race, eth-
nicity, and immigration status. Knitting together this rich tapestry of color, lan-
guage and country of origin are shared values and hopes: All workers want to pro-
26
vide better lives for their families. All of us want the opportunity to hold good jobs
in safe environments, which pay a living wage and provide reliable health care and
retirement benefits and a chance to better ourselves through education and training.
And as much as anything else, workers here and around the world want to be treat-
ed with basic dignity and respect, free from persecution and harassment based on
who we are or where we come from. These fundamental aspirations of the human
spirit do not distinguish between workers based on their immigration status. Nor,
we believe, should we.
The United States is a Nation of immigrants. Now as in the past, immigrants en-
rich our lives, contributing energy, talent and commitment to making our economy
more vibrant; our workplaces more productive; and our nation, better and stronger.
We will be better still, if we move forward with courage, compassion and conviction
to shape a new immigration policy that protects the rights and promotes the inter-
ests of all those who live and work in the United States, contributing to their fami-
lies, their communities, and the Nation as a whole.
The Special Relationship Between Unions and Immigrants: American workers and
their unions are indebted to earlier generations of immigrants who, in their deter-
miNation to fight exploitation and abuse, founded the union movement and in so
doing, improved working conditions and living standards for all working families.
Today, growing numbers of immigrant workers are once again winning a voice at
work by joining together into unions. Last year, 10 percent of all union members
were foreign born, roughly mirroring immigrants share of the population overall.
Many immigrants work in low wage occupations for which the Bureau of Labor
Statistics projects very substantial job growth over the next few years. It is no sur-
prise, then, that AFLCIO unions which represent workers in these industriesthe
Hotel Employees and Restaurant Employees Union, the Service Employees Inter-
national Union, the Laborers International Union of North America, and the United
Food and Commercial Workersare also among those unions whose ranks are grow-
ing most.
Those of us in the union movement are proud and honored to count these immi-
grant workers in our ranks. We know that for many immigrants, a union card is
the first and best line of defense against exploitation. In the AFLCIOs Labor Day
survey on WorkersRights in America, most workers of color86% of Latinos, 85%
of African-Americans, and 83% of Asian workers B said recent immigrants are more
likely than other workers to be treated unfairly by employers. And immigrant work-
ers (especially Latinos) were more likely than workers overall to say workers need
greater protections of their rights on the job. We know that the workplace is strong-
er, fairer and safer not only for immigrants and others most vulnerable to abuse,
but for all workers when the rights of every worker are equally protected and en-
forced.
Union membership also often offers immigrant workers, especially those at the
bottom of the economic ladder, the greatest chance to share in the American dream.
In general, workers represented by unions earn higher wages and are far more like-
ly to have employer-provided health insurance than non-union workers in similar
jobs. In low wage occupations where many immigrants workas laborers and agri-
cultural employees, for exampleworkers represented by unions earn wages 56% to
59% greater than their nonunion counterparts. Ninety percent of all union members
have health insurance, compared with 76% of nonunion workers. Job-based access
to health insurance is particularly important to immigrants, who are more likely
than other groups of workers to be uninsured.
We recognize and acknowledge that occasionally in the past, there has been resist-
ance within our own ranks to new groups in society and in the workplace. Early
in the history of the labor movement, U.S.-born workers resisted Irish workers,
whom they feared would take their jobs at lower wages. African American and
women workers faced similar resistance and fears. In each instance, however, un-
derstanding and inclusion of these workers in the union movement energized us and
made us stronger. We believe the time has come for our movement and our Nation
to accord more recent immigrant workers that same understanding, inclusion and
opportunity to become full participants in their workplaces and communities.
Principles of Immigration Reform: More than a year ago, in February 2000, and
then again just last month, the AFLCIO Executive Council firmly and squarely
placed the union movement on the side of immigrant workers. In statements adopt-
ed without dissent, the Council set out our view that immigrants have played and
continue to play an extremely important role in the workplace and society, and that
they are entitled to full and fair workplace protections. We believe the principles
articulated in those Council statements should inform national immigration policy.
Specifically,
27
1. Undocumented workers and their families should receive permanent
legal status through a new legalization program;
2. Employer sanctions and the I9 system should be replaced with a system
that targets and criminalizes business behavior that exploits workers for
commercial gain;
3. Immigrant workers should enjoy full workplace protections, including the
rights to organize into unions and to seek vindication of their rights free
of employer intimidation; and
4. Guestworker programs should be reformed but not expanded.
Legalization: The labor movement is increasingly concerned about the welfare of
our undocumented brothers and sisters, as we are for all immigrant workers. As I
have discussed, the relationship between unions and their immigrant members is
mutual: unions make a tremendous positive impact on the lives of immigrant work-
ers and their families, and immigrant workers have long been a vital part of the
union movement. Immigrant workers have courageously stood with U.S. workers,
leading organizing drives and assuming positions of leadership on both the local and
national levels. The AFLCIO supports efforts to legalize undocumented workers
who contribute to their workplaces and community. In fact, a number of our inter-
national unions assisted many undocumented workers who adjusted their status
under the last broad legalization program, the Immigration Reform Act of 1986
(IRCA).
It is unacceptable that upwards of 8 million people live and work in our country
each day without the full protection of the law. Undocumented workers and their
families are constantly at risk of being preyed upon by criminals, dishonest land-
lords, or unscrupulous employers, by those who believe they can get away with
breaking the law simply because their victims are immigrants. But, undocumented
people are not the sole victims when these laws are broken: All of us lose a bit of
our own legal protections when entire categories of people are denied theirs. This
is especially true in the workplace, where employers may sometimes seek to polarize
workers based on race, ethnicity or national origin. In the face of such divide and
conquer strategies, labor and employment laws are broken with impunity, wages
and working conditions stagnate or fall, and worker progress overall is impeded.
As a matter of fundamental justice, undocumented immigrant workers who have
worked hard, paid taxes and contributed to their workplaces and communities
should be allowed to adjust their status to legal, permanent resident.
Under current law, only those undocumented individuals who can show they were
U.S. residents since 1972, almost 30 years ago, may adjust their status. Even as
we were putting the finishing touches on this testimony, the Senate still had not
approved S. 778, extending section 245(i) to allow some undocumented people to ad-
just their status, thereby reducing the size of the undocumented population. Our
current immigration policy ignores the fact that many undocumented workers con-
tribute to the national economy, have children who are U.S. citizens, and are long-
term, law-abiding members of their communities.
A broad legalization program must also allow undocumented people from all coun-
tries to adjust their status. The large number of undocumented Mexican workers is
a consequence of the 2000-mile border and 300 year history our nations share. We
recognize and cherish the bond and special relationship between our countries. And
we value and respect Mexican migrants; they are hardworking and deserving. But
so, too, are undocumented workers from Haiti, Guatemala, Poland, Canada and
elsewhere. They also have stories to tell of their hopes and dreams for a future in
the United States, and they also work hard and contribute to their communities
each and every day.
Limiting a legalization program to one nationality will only further divide us as
a people, and leave millions of workers and their families without the legal protec-
tions they deserve.
Repeal and Replacement of Employer Sanctions and the I9 Verification System:
The last legalization law enacted, IRCA in 1986, included provisions making it ille-
gal for an employer to hire a worker without work authorization, imposing employer
sanctions for violations of that law.
These provisions have not worked and should be repealed. Even though the object
of employer sanctions was to punish employers who knowingly hire undocumented
workers, and not the workers themselves, in reality employers have manipulated
the program to violate federal and state labor laws and to discriminate against
workers. The current situation not only harms all workers, but also those employers
who face unfair competition from others who skimp on labor costs by hiring and
then exploiting undocumented workers.
I think no one will contest that employer sanctions have failed. They have not de-
terred the flow of undocumented workers into the United States, and almost no em-
28
ployer ever experiences a penalty or sanction. In 1999, the General Accounting Of-
fice reported that only 17% of lead-driven cases resulted in any sanction or penalty
against employers who had violated the law, and that INS collected only 50% of the
fines that were levied. During the same period reviewed by the GAO, only 2% of
all investigations resulted in a criminal penalty.
Complementing the employer sanctions program is the I9 form, which verifies
an individuals authorization to work. Employers are required to keep these forms
on file for inspection by the Immigration and Naturalization Service (INS). In addi-
tion to the paperwork burden it imposes on employers, the I9 system does not pro-
tect workers or prevent the hiring of the undocumented. Workers sometimes falsify
records in order to comply with the verification requirements. And, many employers
are cavalier or worse in their own compliance, sometimes encouraging or condoning
falsification, only to discover it later, when the workers begin to push for higher
wages and better working conditions. Like the system of employer sanctions, the I
9 verification system has not worked and should be scrapped.
Finally, shortly after IRCAs enactment, it became clear that numerous workers,
mainly Asian and Latino, faced discrimiNation by employers who assumed the
workers lacked legitimate work authorization because they appeared foreign or
spoke with accents. In effect, a system designed to penalize one form of unlawful
behavior promoted another.
Although employer sanctions did not create the problems of exploitation and dis-
crimination, they have contributed significantly to the inability of immigrant work-
ers to enjoy and enforce the most basic of labor and workplace rights. Having failed
to fulfill their central purposes and, indeed, having set back the progress of workers
generally, employer sanctions must be repealed. The current system of employer
sanctions and I9 verification should be replaced with a new scheme that punishes
those employers who deliberately break immigration and labor laws for economic
gain. We should increase criminal penalties for employers who knowingly recruit
undocumented workers and participate in document fraud for business advantage.
Moreover, to help ensure the new scheme works and to avoid the manipulation that
characterizes the present system, it is essential that immigrant workers, who risk
unfair deportation when they stand up for their rights, receive protections when
they file well-ground complaints against their employers.
Full workplace rights: In theory, all workers, regardless of immigration status,
enjoy most of the basic rights and protections under the Nations labor and employ-
ment laws. In reality, though, undocumented workers typically fall through and out-
side this safety neta result that all too often occurs not by accident, but by design.
The constant threat of deportation serves as a velvet hammer employers can wield
not only to deny basic rights, such as the right to earn the minimum wage, but also
to deter undocumented workers from filing complaints. And since most labor stand-
ards investigations are complaint-driven, employers deny rights and protections for
undocumented workers with virtual impunity.
In many instances, employers call the INS to report undocumented workers only
after they get wind of organizing campaigns or labor standards complaints. Upon
learning of organizing efforts or that immigrant workers have filed wage and hour,
OSHA, or EEOC charges, employers who have shown no interest in complying with
any other labor law suddenly become converted to the sanctity of the ban on hiring
workers without work authorization. In a sense, employers determine immigration
enforcement policy by alerting the INS whenever workers seek to exercise their em-
ployment and labor rights.
Union organizers have faced this tactic when they try to organize workplaces that
are comprised predominantly of immigrant workers. It takes a lot of courage for
workers to come forward and openly fight for a voice at work through a union. The
Human Rights Watch stated in its report Unfair Advantage: Workers-Freedom of As-
sociation in the United States under International Human Rights Standards, that
many U.S. workerswho try to form and join trade unions to bargain with their
employer are spied on, harassed, pressured, threatened, suspended, fired, deported
or otherwise victimized in reprisal for their exercise of the right to freedom of asso-
ciation. The threat to immigrant workers is even greater: they risk not only job loss,
but also possible deportation if they exercise their right to form a union.
In fact, using the threat of INS enforcement to chill worker activity has been a
disturbingly prevalent business practice since the implementation of employer sanc-
tions. I would like to give you a couple of the many examples of employers who tried
to use the immigration laws to deny worker rights:
In 1997, the UFCW began an organizing campaign at the Smithfield Pack-
ing Company in North Carolina. Racial and ethnic separation characterized
assignments at Smithfield Packing: white workers held mechanical or su-
pervisory jobs, Native Americans worked in the warehouse, and African
29
Americans and Mexican immigrants were consigned to thedirty and dan-
gerous jobs of slaughtering and butchering animals. When UFCW first
began its organizing drive, the company fired African American union sup-
porters, and replaced them with Mexican immigrant workers it believed
would not vote for union representation. Just before the vote, Smithfield
segregated the workers into different rooms by race, then singled out the
Latino workers for questioning regarding their immigration status, threat-
ening to call the INS and have them deported. The morning of the union
vote, county deputy sheriffs in riot gear lined the plant gates. Not surpris-
ingly, the union lost the vote, but earlier this year, the NLRB set aside the
results and ordered a new election. The Board also found that the company
illegally fired 11 workers because of their union activities.
Two weeks ago, the EEOC sued DeCoster Farms, an egg processing plant
located near Clarion, Iowa. The EEOC charged that Latina workers were
repeatedly raped by their supervisors and threatened with firings, deporta-
tion, or even murder if they reported the crimes. The EEOC is also inves-
tigating charges that the women were paid less than male workers and
were denied access to water or breaks as required by law. The supervisors
are all male and bilingual. One of the supervisors named by the EEOC as
a perpetrator in the rapes was also arrested last week by the INS and
charged with harboring unauthorized workers during an immigration en-
forcement raid that occurred in April. The workers, who speak little or no
English, live in rural Iowa where they are isolated geographically and cul-
turally. Some of them have apparently quit their jobs and are currently liv-
ing in a domestic violence shelter.
Instead of punishing workers, immigration and labor standards policies should
specifically penalize employers who break the law and protect workers who uphold
the sanctity of our legal system by pursuing their labor and employment rights. We
need to ensure that all workers, regardless of their immigration status, are made
aware of their rights and of the means to vindicate them. And immigrant workers
should have specific protections against employers who try to use the workers im-
migration status to block their efforts to form a union or to otherwise exercise basic
workplace rights. Workers should be protected against deportation when they file
a labor standards complaint unless the INS can prove that the deportation pro-
ceedings are in no way related to the workplace situation, and that the complaint
was not filed in bad faith to avoid deportation. Agencies such as the Department
of Labor should be required to keep confidential any information they learn about
a workers immigration status during an investigation or proceeding enforcing labor
rights. The INS should be prohibited from proceeding with workplace investigations
during a labor dispute. Finally, in order to better target investigations and enforce-
ment, the Departments of Labor and Justice should be required to conduct a study
of industries that employ undocumented workers, and the exploitation of undocu-
mented workers by their employers.
Of course, continued inadequate funding for labor standards enforcement will
hamper the measures I have outlined above. Funding for labor protection activities
has not kept pace with labor force growth during the 1990s. We must reverse that
trend and fund these programs adequately, if we are to ensure full workplace rights
and protections for all.
Reforming guestworker programs: Some policymakers have advocated a new
guestworker program as the answer to the problems associated with our current
failed immigration policies. We do not agree. Before there is any serious consider-
ation given to a new guestworker program, immigrants who have been living in this
country, holding jobs, paying taxes and contributing to their communities must be
given access to permanent legal status.
Beyond that, we are deeply troubled by the guestworker proposals some are advo-
cating, which would lift restrictions on recruiting and hiring low wage, low skilled
foreign workers, while conferring only limited protections on these workers and pro-
hibiting them from seeking permanent residency. We recognize that some workers
want to return to their native countries and should be able to do so, but any new
temporary worker program must include a path to permanent legalization.
A new guestworker program built on the failed policies and models of the past
cannot be the centerpiece of our national immigration policy. Analyses by DOL,
GAO and others have found that despite employers claims to the contrary,
guestworkers earn less than their U.S. counterparts. Years of low wages facilitated
by the bracero and H2A programs and easy access to undocumented workers have
left U.S. agricultural workers with wages that actually fell during the last economic
expansion, a time when virtually all other low wage, low skill workers saw their
30
incomes rise. An INS report to Congress verified that even highly skilled H1B visa
holders in the IT industry earned less than U.S. workers in the same occupations.
Guestworkers regularly face many of the problems associated with contingent em-
ployment: lower pay, no benefits and intentional misclassification of employment
status.
President Bush has suggested that guest worker programs merely match willing
workers to employers who are willing to hire them. The Presidents statements,
however benign sounding, do nothing to address the serious failings of guestworker
programs, or the need to test the U.S. labor market first, to assure that there are
no domestic workers interested in the positions. Nor do the Presidents statements
recognize that often guestworkers are only willing to take jobs at below the going
rate because they are desperate to come to or stay in the United States.
Guestworkers are tied to an employer or industry or occupation in a way that
other workers are not. That alone makes them extremely vulnerable. While
guestworkers are covered by most labor and employment laws, the nature of their
tie to their employer makes these protections more fiction than reality for most.
Hence, any guestworker program must include and protect all the workplace rights
that U.S. workers enjoy. In addition, a new guestworker program based entirely on
a workers relationship to his or her employer, resulting in a system of virtual bond-
age for many, is unacceptable.
Additional Concerns: We recognize that the issues we have discussed touch on
just a few aspects of national immigration policy. Our current legal immigration sys-
tem for family members, for example, is in shamefully bad shape. Whether address-
ing family reunification backlogs or processing applications for those seeking to ad-
just their status, the INS needs adequate funding specifically dedicated to benefits
and services. The promise of legalization is only real when the agency administering
the program has properly trained staff, reasonable regulations that are consistent
with the letter and spirit of the law, and the funding necessary to process applica-
tions in a fair and efficient manner.
CONCLUSION
Unions are playing an important role in bridging the gap between immigrant and
non-immigrant workers. We know that the fortunes and futures of all workers in
the United States are linked: If undocumented workers have no practical choice but
to accept substandard pay and working conditions, their U.S. counterparts will
eventually be forced to accept such conditions as well. There is no protection for any
worker when some workers have freedom to exercise their labor and employment
rights and others do not.
Unions have already begun the process of bringing workers together and encour-
aging open and frank discussions in the workplace and in our communities. We be-
lieve this dialog fosters the respect and brotherhood necessary for our country to
move forward, even as our demographics change.
And we know that when we act to strengthen protections for the most vulnerable
among us, we build a movement and a system that is stronger for all of us.
Senator KENNEDY. Thank you very much, Mr. Sweeney. We look
forward to inquiring of you in just a few moments.
Mr. Donohue, we are pleased to have you. We know you inter-
rupted your break to join with us here today, so we appreciate your
presence.
STATEMENT OF THOMAS J. DONOHUE, PRESIDENT AND CHIEF

EXECUTIVE OFFICER, U.S. CHAMBER OF COMMERCE, WASH-
INGTON, D.C.
Mr. DONOHUE. Thank you, Senator. I am very pleased to be here
with my colleagues to discuss an issue of critical importance to the
future well-being of this country, and that is immigration reform.
John Sweeney and I testify together from time to time, and from
time to time we agree. We agree on this issue from different per-
spectives, but the fact is that we realize there needs to be change
in the immigration system, and it needs to be done for the benefit
of the country.
31
There are two primary reasons why immigration reform in my

view is so important. First, an expanding economy, a declining
working-age population, and an impending retirement of the baby-
boom generation have all combined to create a current and future
workplace shortage that, if left unchecked, will cripple American
business, especially small ones, and severely impede economic
growth. And I would like tothe chairman in his other work in the
Senate is very, very involved in the whole question of entitle-
mentshealth, pensions, Social Security, and so on. And if you
look at the extension of life expectancy in this country and the ex-
traordinary number of collectors we are going to have in the next
years in relation to the shrinkage of the people that are prepared
to work here and pay taxes here, you find that this Nation, because
of its population change, because of its societal changes and these
retirements that we are expecting, has got a great opportunity to
do important things but has a tremendous challenge of where we
are going to get the workers of the future.
More than 60 million current employees will likely retire over
the next 30 years, and the Bureau of Labor Statistics projects that
people on the labor force age 25 to 34 is going to decline by 2.7 mil-
lion just over the next 7 years. Improving productivity, recruiting
non-traditional employees such as the disabled, and taking people
from welfare to work, luring retirees out of retirement because they
are going to be around for a long, long time, and creating incen-
tives for people to work longer on a voluntary basis are all part of
the solution. But it is not going to happen without some very, very
serious increases in immigration. We wont close the worker short-
age without filling that gap on the immigration side.
Now, as John indicated, there are 8 or 9 or maybe 10 or 11 mil-
lion undocumented immigrants working in America. Now, why are
they here? Were those jobs created because they came here? No.
Those jobs are here. And where are they? They are in hospitals.
They are in the fields. They are in factories. They are in McDon-
alds. They are in all sorts of places where today we are unable to
get sufficient workers. Many jobs are left unfilled in this country,
and they are essential jobs. I have some involvement personally in
the retirement and the health care business in terms of nursing
homes. You take those 8 million employees, 9 million, 10 million,
and you put them out of the country tomorrow, this economy, and
particularly the service economy in this country, is going to stop
dead in its tracks.
Now, Johns views about protecting them, many of those I share.
And Johns views aboutand I would let him speak for himself,
but, you know, he sees a wonderful opportunity to continue to grow
his own institution. And I respect that. But even though we have
two different reasons for doing this, I think collectively we have an
essential reason for doing it, and that is, we need to keep the
American economy going and we need to keep the service indus-
tries that American citizens need in place.
We have a wonderful H1B visa program to get, you know, the
skilled workers we need, the high-skill, high-technology. We bring
600,000 workers a year into the United States. But when you talk
about all the things that we ought to be doing as a way to legalize
and formalize and improve this system, you have got to be very,
32
very careful, Mr. Chairman, of where you put that responsibility.

The INS works hard. They give the IRS a good name in terms of
their ability to get things done in a timely basis. And if you look
at what would happen, Senator Specter, if we took some of these
people right now and put them on line to get a green card, you
could be talking 6 to 10 years. So that is why a guest worker pro-
gram makes some sense because you could put people in a pro-
gramand, John, I dont care what we call itin a formal way
with all the protections that you might like to give them, and over
time we could be sure that they earn their way into the system.
On the matter that was discussed, very briefly, about Mexico and
Canada and should they have a precedent, well, NAFTA has al-
ready demonstrated its essentiality by creating an extraordinary
number of jobs in the United States. We are building a closer na-
tional security and national well-being and economic well-being in
the NAFTA arrangement, and there may be a possibility to do
something a little more creative there.
Let me hit the second issue. We need stability in the workplace.
Right now today, in any of your States, an illegal worker coming
into the United States for $50 to $100 can get a set of credentials
that are so perfect that you would hire them in your own office if
you had a little business there. And John indicated a number of
issues where perhaps they are not treated well. And there are
places where we just have to make sure that we are not leveraging
people one way or the other, that we know who is working for us,
we know they are legal, we know that we can count on them over
a period of time.
Employers go to great lengths to make sure they are legitimate
employers. By the way, we have people in every role of our society
who we are not very excited about, and the Chamber of Commerce
of the United States is not excited about every company in Amer-
ica. Some people behave the way we dont want them to behave.
It is the same thing in Johns organization. We want legitimate em-
ployment of people from other lands in a way that assures their
rights and assures their safety and pays them in a comparable way
that we would pay anyone else in the workforce.
But as I indicated, there is a lot of leveraging going on. If you
try and follow the system by following the rules, if you dealand,
by the way, you know from your own offices, when you are trying
to get a green card arranged for somebody where it is the most le-
gitimate and thoughtful thing that it ought to be done, I mean, it
is very, very difficult.
So here is my view: We need a temporary worker program but,
more important, we need it so that we can figure out a way to tran-
sition from what we have to where we are going to get there. We
need a transition system. And this might be a way to get around
the problems with the INS and put a lot of people on a temporary
worker program.
We need to be very, very careful to understand thatand, by the
way, Senator Specter, when the demand for immigrants is the
highest for us, when our demand for workers is the highest and our
provision of workers is the lowest is when Mexico is going to be
having fewer workers for us. So we are going to be finding other
places to get them.
33
We need to understand we have to have those workers, or our

economy doesnt work. And we need to figure out a way to doI
dont know whether it is an amnesty, whether it is an orderly tran-
sition to making these folks permanent workers. But we need to
pick out the people that have paid their dues, that have paid their
taxes, that have been good citizens, and find a way to do it. I would
like to let John Sweeney have my way. I dont care what you call
it. We need to get these workers legitimately into the United States
economy and, gentlemen, you need more of them in the future, not
fewer.
I understand a little economic downturn, a little unemployment.
Some of that is in areas we are never going to be back in business.
But many of those workers are not prepared to do the work that
these immigrants are doing right now.
I would also sayand excuse me for taking just one other sec-
ondif we do this right, it is going to up theit is going to sta-
bilize the pay in this country, and I think it is going to up some
of the pay in the lower-level jobs because we are not going to have
this leveraging. Everybody gets paid the same. We know who they
are, and I think you are going to be in business in a way that bene-
fits everyone.
I dont know how the details get worked out, but we have an ex-
traordinary staff. We are prepared to participate in that, Mr.
Chairman. I think we set an excellent tone yesterday with Presi-
dent Fox and President Bush raising this subject. I believe the
White House, by the way, is dragging its feet a little more than it
should. I wouldnt say it is political considerations. But if they are,
they are on the wrong curve, and they ought to get busy on this
matter. And while some would suggest that they are great friends
of ours, they are, but when they are wrong, we tell them. And they
ought to move very, very quickly on this matter.
And so I am here because American business needs workers.
John Sweeney is here because he understands that, but he would
like to unionize them and protect them, God bless him. But, clear-
ly, both of us understand a very simple issue: If we dont have
workers here to run the American economy, that is a debate we can
never have.
[The prepared statement of Mr. Donohue follows:]
STATEMENT OF THOMAS J. DONOHUE, PRESIDENT AND CHIEF EXECUTIVE OFFICER,
U.S. CHAMBER OF COMMERCE, WASHINGTON, D.C.
Mr. Chairman, I thank you for inviting me to speak before the Committee today
on the issue of immigration reform, specifically in the context of the historic new
relationship between the U.S. and Mexico. I am Thomas J. Donohue, President and
Chief Executive Officer of the U.S. Chamber of Commerce, a business federation
representing more than 3 million individual companies and employers.
The subject of this hearing is the U.S.-Mexico Migration Discussions and as the
title of the hearing states, we believe there is an historic opportunity to build closer
relations with our neighbor to the South. Mexico is our second largest trading part-
ner, after Canada, and last year accounted for 10% of all our international trade.
And we are Mexicos largest trading partner, accounting for 82% of Mexican exports
and 70% of Mexican imports. Our relationship, however, goes far beyond trade in
goods and services. It entails extensive commercial, cultural, and educational ties,
as demonstrated by the annual figure of nearly 340 million legal crossings from
Mexico to the United States in the fiscal year 1999. In addition, more than a half-
million American citizens live in Mexico. More than 2,600 U.S. companies have op-
34
erations there, and the U.S. accounts for 60% of all foreign direct investment in
Mexico. Along the 2,000-mile shared border, state and local governments interact
closely. We are therefore pleased that Presidents Bush and Fox are building upon
this close relationship by cooperating on law enforcement, border management, eco-
nomic development, and, of course, migration. With a shortage of workers in Amer-
ica, and a ready and willing workforce in Mexico, we have a unique opportunity to
build a mutually beneficial immigration system. We need only to act.
The Chamber strongly supports immigration and believes that immigrants are a
driving force in our economy, both filling and creating jobs. They are also our best
hope to curb chronic American labor shortages that are impeding the economy. The
Chamber has been involved in efforts to increase the immigration of skilled workers
under the H1B program, to facilitate international transfers of personnel by al-
lowing spouses to continue their careers, and to repeal potentially harmful provi-
sions such as Section 110 of the 1996 immigration act that would have created a
new border bureaucracy that would have hurt trade and travel along our borders.
The Chamber has members in all industries, employers of workers at all levels,
and we have been increasingly hearing from Chamber members across the country
that workforce availability issues are among their top priorities. In fact, in testi-
mony earlier this year before the Senate Immigration Subcommittee, Elizabeth
Dickson, Human Resource Specialist for Chamber member Ingersoll-Rand Corpora-
tion, and Chair of our Subcommittee on Immigration, related her companys difficul-
ties recruiting skilled welders, service and repair technicians, and tool and die work-
ers. We also have members in the restaurant, hotel, health care, manufacturing,
construction and other industries who have asked the Chamber for help in finding
and keeping the essential workers that keep our economy running. Yes, knowledge
workers are the driving force for development and expansion of ideas and products.
However, once these ideas are developed and the ideas become products, essential
workers are needed to manufacture, deliver and service those products. We still
must answer the question: Who will fill the millions of essential worker positions
that we will create? Immigration must be one answer, but current law does not pro-
vide the solution.
That is why the Chamber helped to found the Essential Worker Immigration Coa-
lition (EWIC), comprised of organizations from across the economy, and continues
to be a leader in that organization. For the Chamber, reform of essential worker
immigration policy is a high priority.
I know the President and the Congress are concerned about the state of the econ-
omy, as are we. But you should know that the recent slowdown has not significantly
impacted the need for these workers. Over the last few years, we have seen unem-
ployment rates as low as any time since 1950, and some local and regional unem-
ployment rates are under 2%. Employers continue to tell us they cannot find anyone
to fill their jobs. According to a recent Employment Policy Foundation (EPF) study,
the economy has more than 135 million jobs, and more than 9 million jobs have
been created in the past five years. Further, workers who have lost jobs recently
are finding new jobs at a faster rate than in the pastmore than half find new jobs
in seven weeks.
Furthermore, this issue is not just one of the boom and bust cycle of our economy.
We are facing a long-term worker shortage that is based on demographics. Secretary
of Labor Elaine Chao in her recent Labor Day address noted the phenomenon of the
Incredible Shrinking Workforce. Bureau of Labor Statistics (BLS) estimates show
that the number of people in the labor force ages 2534 is projected to decline by
2.7 million in the next seven years. By 2008, the labor force age 45 and older will
have the fastest growth rate and be a full 40% of the labor force. BLS also projects
that by 2008 we will have 161 million jobs, but only 154 million workers. More than
60 million current employees will likely retire over the next 30 years. The EPF re-
port also discusses the coming labor shortage, projecting a shortfall of 4.8 million
workers in 10 years, 19.7 million in 20 years, 35.8 million in 30 years. The economic
impact of this shortage is already being felt. But according to the EPF, failure to
close the labor supply gap will lower Gross Domestic Product growth by at least 3
percent in 10 years and 17 percent in 30 years.
Dr. Richard Judy of the Hudson Institute testified last February before a House
Education and Workforce Subcommittee that:
After 2011, the year in which the first of the Baby Boomers turns 65, their
flight to retirement will reach proportions so huge as, barring unforeseen
increases in immigration and/or participation rates among the elderly, to
reduce the total size of the Nations workforce.
In her Labor Day speech, Secretary Chao stated that not only must we find ways
to integrate older workers, workers with disabilities, single moms and other non-
35
traditional workers into the workplace, but also we must look to immigration. In
this, she has echoed a sentiment expounded by Federal Reserve Chairman Alan
Greenspan over the last few yearsimmigrants are good for our economy and sup-
port our workforce. As Chairman Greenspan recently stated before the House Fi-
nancial Services Committee in July of this year:
[T]his country has benefited immensely from the fact that we draw people
from all over the world. And the average immigrant comes from a less be-
nign environment, and indeed thats the reason theyve come here. And I
think they appreciate the benefits of this country more than those of us
who were born here. And it shows in their entrepreneurship, their enter-
prise and their willingness to do the types of work that makes this economy
function.
A February 2001 analysis by the Arizona Mexico Commission reached similar con-
clusions:
The bottom line is that if the U.S. economy is producing jobs faster than
it is producing people to fill those jobs, foreign labor must be accepted as
a viable solution to the labor shortage. In addition, we must acknowledge
that the Baby Boomer population is aging, and the total U.S.-born popu-
lation, without immigrants, is shrinking. All across the world, increased im-
migration is seen as one solution to boost the workforce that is needed to
sustain economies. The foreign worker, both legal and illegal, has been an
integral part of our inflation-free economic growth, and must be valued as
a contributor to our strong economy.1
We all now understand that immigrants are complementing our U.S. workforce,
not displacing it. As we have made it a priority as a Nation for our workers to move
into higher-paying, higher-skilled jobs, immigrant workers are filling the gap by
taking many manual labor jobs that U.S. workers are avoiding.
Many have stated that this economy no longer needs lower-skilled workers. Noth-
ing could be farther from the truth. Almost three-quarters of the jobs in our econ-
omy do not require a college degree. Close to 40% of the jobs require only short-
term on the job training. Over the next ten years, the most job growth (i.e., in abso-
lute terms) will be in occupations requiring less formal education or training. Ac-
cording to the Bureau of Labor Statistics, of the top ten occupations with the largest
numerical job growth between now and 2008, all but two require less than a bach-
elors degree; the majority (six) require only short-term on-the-job training. These
include: retail salespersons, truck drivers, personal care and home health aides, and
office clerks. The next ten occupations with the largest job growth include nursing
aides, janitors and cleaners, waiters and waitresses, and food counter and related
workers. The top thirty include childcare workers, landscapers and groundskeepers,
hand packers and packagers. Finally, the top ten occupations with the greatest re-
tiree replacement needs (this group includes the occupations in which the average
age of the current workforce is rapidly rising) include the following: secretaries,
truck drivers, janitors and cleaners, registered nurses, bookkeeping and accounting
clerks.
These needs cut across industry sectors. The health care industry is facing severe
shortages, not just of registered nurses, which is well documented, but also of cer-
tified nurse assistants, who provide 75% of the care in nursing homes and long-term
care facilities, as well as hospitals. The industry will create jobs for 600,000 Cer-
tified Nurse Assistants and 300,000 others over the next five years. According to the
Department of Health and Human Services, the nursing home industry has a cur-
rent shortage of 400,000 health care workers. The hospitality industry is also facing
many unfilled jobs: the hotel industry estimates it will need an additional 700,000
workers in the next decade. The restaurant industry is looking at creating 2 million
new jobs in the next ten years. In the construction industries, roofers are looking
at an additional 50,000 workers needed in the next decade. In transportation con-
struction, for every $1 billion invested in highway construction programs an addi-
tional 42,000 jobs are created.2 Overall the construction industry is expected to cre-
ate 550,000 new jobs between now and 2008, according to the Bureau of Labor Sta-
1 Labor Shortages and Illegal Immigration: Arizonas Three-Pronged Strategy, Arizona-Mex-

ico Commission, February 2001, pp. 45.
2 The Chamber is working with labor in support of a newly formed national coalition, Ameri-
cans for Transportation Mobility, comprised of more than 300 organizations and strongly sup-
ports improving the safety and efficiency of our Nations transportation infrastructure system.
Such improvements will undoubtedly create additional jobs in this industry and benefit all
Americans.
36
tistics. The meat processing industry will create over 75,000 jobs. Transportation
services153,000.
Some will ask whether we have done everything we can to find workers for these
jobs in the United States. The answer is yes, and we are continuing to do so.
Through the Center for Workforce Preparation, the Chambers non-profit affiliate,
we have taken a strong role in addressing the critical shortages in the availability
of skilled and unskilled workers that business is experiencing today. Current efforts
of the Center include the following:
Identifying and supporting programs that bring new sources of labor to
work readinessformer welfare recipients, people with disabilities, recent
retirees, and others.
Partnering with Job Corps, the U.S. Departments of Labor and Education
and others in efforts to develop worker training programs that address and
meet current business needs.
Helping the Chambers federation of 3,000 state, local and metro chambers
of commerce to effectively engage in workforce development by providing
tools, models and best practices for implementation at every level. Espe-
cially critical in this effort has been the development of a school-to-career
guidebook to ensure that tomorrows workers have the skills to succeed.
Informing businesses of the resources and opportunities available to them
and their employees to obtain education and training.
Of course, I would be happy to provide the Committee members with additional
information about these efforts, at your request.
The industries that we are talking about are some of the leaders in the Nations
welfare-to-work, school-to-work, and prison-to-work efforts. Because many of these
jobs are entry-level, requiring little or no experience, and often few skills, they are
the stepping-stone for many on their road to the American dream. Employers are
doing everything reasonable they can to fill these jobs, but still the jobs are going
begging.
Members of the Committee, I believe I have adequately demonstrated our need.
Now we must look to solutions. As stated above, we continue to do all we can to
ensure that we are utilizing our domestic workforce, but because of the current lack
of available job applicants, and the future demographics that threaten our economy,
we must look to our immigration system to help fill the gap. However, as you are
by now aware, our current immigration system does not allow us to access this po-
tential pool.
We have a current temporary labor program, called the H2B program. The H
2B visa is a temporary visa issued to individuals who will be working in temporary,
seasonal jobs outside of agriculture. The H2B process is a cumbersome and bureau-
cratic one that involves two separate agencies, a lot of paperwork, and often more
time than the job itself will last. In the past, this red tape has meant that very few
employers bothered to use the program, although in recent years its use has esca-
lated due to the tight labor market.
While many employers do have seasonal needs and changes to the H2B category
are warranted to make it easier for employers to use, many more employers have
year-round and long-term needs that are not fulfilled. Such employers seeking to
hire foreign nationals for their job openings are out of luck, since no long-term tem-
porary visa exists in our current system. There is no H1B counterpart for essen-
tial workers, as exists for high-skilled jobs. If an employer has a long-term position,
there is no legal mechanism to sponsor foreign nationals to fill that need.
If the employer would like to sponsor a lower-skilled worker permanently, he or
she is, as a practical matter, out of luck. Current annual quotas limiting green cards
to only 5000 green cards each year for persons coming to work in jobs that require
less than two years of education or training mean a five to ten year wait.
In sum, we have a current situation in which our Nation has millions of jobs
available, a decreasing workforce relative to the number of openings, and an immi-
gration system that provides no practical legal mechanism for employers and foreign
nationals to fill those openings. Is it any wonder we have such a large number of
undocumented workers in this country?
And what about those workers? These individuals are here and working, many
of them paying taxes.3 You may ask how are they working? The answer is simple.
Under the current law, an employer must verify that each employee is eligible to
3 For example, an April 15, 2001 article in the Washington Post, Illegals Paying Millions in
Taxes, noted that according to internal Social Security Administration documents, Over the
eight-year period, the mystery workers [presumed to be undocumented workers] were respon-
sible for more than $20 billion paid in Social Security taxesbut they recieved no credit for
them. Their payments have helped contribute to the systems surplus. . . .
37
work in the U.S. But the employees can choose which documents from the INS-ap-
proved list (set out on the so-called I9 form) to present to support their claim that
they can work legally. As long as the documents look valid on their face, the em-
ployer must accept them. To ask for additional documentation because someone may
look or sound foreign is potentially a violation of that persons civil rights under
both immigration and employment laws. Because of the prevalence of false, yet cred-
ible, documents, many employers simply do not know their employees are undocu-
mented. Employers only learn of this situation after an INS raid, or when the Social
Security Administration sends a so-called no-match letter telling them that their
employees records dont match the governments.
The result is that the employer must dismiss these employees, if they have not
already left of their own volition.4 As you can see, to an employer who is already
facing labor shortages, this instability in the workplace is adding salt to the wound.
So we have two major problems to deal withfilling the unfilled jobs, both now
and in the future, and keeping our current workforce. In looking toward the U.S./
Mexico discussions, we believe that any outcome must address both problems. That
is why the Chamber supports a comprehensive approach to this issue. We must de-
velop new, legal immigration methods, which, as President Bush has stated match
a willing employee with a willing employer.
We would support new temporary worker programs that would accomplish this
ideal in a manner that is fast, efficient and fair to all parties concerned. While the
specifics of how such a program would work are fair game for experts in the field,
businesses want a system that is simple, easy to understand, and responsive to
their needs in a timely manner. We also realize that protections to prevent possible
abuses and to help ensure that the interests of American workers are protected
must also be included. But the system must not become so encumbered with bureau-
cratic hurdles as to be, as a practical matter, unworkable.
We would also like some flexibility in the system. While a temporary worker pro-
gram would allow individuals to begin work in the U.S. relatively quickly, and, fur-
ther, to meet the needs of those individuals who wish to travel back and forth to
their home country, there may exist situations where a willing employer and a will-
ing employee would like the relationship to continue on a more permanent basis.
There should be an ability for that individual, under certain circumstances, to have
a path to permanent residence, a green card.
Finally, we believe that those who have already demonstrated their commitment
to the United States by living here, working and paying taxes, should have a means
by which they can earn permanent residence. There are many possible ways to ac-
complish this that are being discussed by the policy-makers; but we simply want
to ensure that some of our best workers can stay and continue their contributions
to their employers and communities.
One final word. We understand that the current discussions are between the
United States and Mexico, which befits one of the largest trading partnerships in
the world. Our relationship with Mexico is, in many ways, unique. However, em-
ployers do not select their employees by nationality, and while a new temporary
worker program may be useful to test with Mexico, especially if it envisions a spe-
cific role for the sending countrys government, we would like to see other nations
be able to participate as well in the near future. Moreover, when we are discussing
the so-called regularization of individuals already in the United States, equity
would seem to suggest that we allow nationals of other nations the same oppor-
tunity for lawful status. A proposal that would apply to a single nationality could
very well prove unworkable and might lead to discrimiNation against other nation-
alities, for fear of their immigration status.
While the details of these proposals are yet to be worked out, we are very sup-
portive of the discussions between President Bush and President Fox, and we are
hopeful that an agreement may be reached that all parties represented here today
will be able to support.
I welcome any questions you may have.
Senator KENNEDY. Raul Yzaguirre. We are glad to have you here,
Raul. We look forward to hearing from you. It seems you have
wrapped your arms around Tom Donohue and John Sweeney, too.
4 The case of one roofing contractor in the Northwest illustrates the point. The INS came in
to audit this companys employment verification records. Although the INS found no violations
by the employer, it was told that a large portion of its workforce was undocumented (most of
whom had already fled). The employer told the INS agents that these were some of his best
employees, and that they would only go to work for his competitors, which indeed they did. The
INS only response was that this was standard procedure.
38
Senator BROWNBACK. That would be a nice picture, if you wanted

to end up that way. That would be a good picture.
Mr. DONOHUE. Actually, he is from Ireland as well.
Senator BROWNBACK. Oh, so this is now an Irish panel.
[Laughter.]
STATEMENT OF RAUL YZAGUIRRE, PRESIDENT, NATIONAL
COUNCIL OF LA RAZA, WASHINGTON, D.C.
Mr. YZAGUIRRE. Mr. Chairman, with your permission, I would
like to summarize my testimony and ask that the full text of my
comments be inserted in the record.
First of all, let me associate myself with the comments of you
and the other members of the Subcommittee. You almost made my
testimony for me. Also, let me thank you and congratulate you for
passage of 245(i). We really appreciate that piece of legislation.
My name is Raul Yzaguirre. I am the president of the National
Council of La Raza, the Nations largest Latino civil rights organi-
zation. I appreciate the opportunity to appear before the Sub-
committee today.
Mr. Chairman, I want to make it very clear that I believe that
Congress has a major opportunity to shape immigration policy in
a way which makes sense and serves the national interest. It is al-
most impossible to describe to you how important this opportunity
is to the Nations Hispanic community. When the news broke that
the Bush administration might be considering a legalization pro-
gram, NCLR was opening its annual conference in Milwaukee. The
thousands of Latino leaders gathered there were electrified by the
news. The response from within our community, as demonstrated
by polls, media coverage, organizing, and energy in communities
throughout the country, has been truly extraordinary.
Mr. Chairman, let me be clear. Latinos agree with the funda-
mental underlying principle of the immigration debate, which is
that as a sovereign Nation, the United States can and should con-
trol its borders. However, we also believe that the enforcement of
immigration laws, like that of all laws, must be non-discriminatory,
fair, and consistent with American values.
Over the last 15 years, our immigration laws have been based on
the premise that there is no place in the United States labor force
for migrants from Mexico and other countries. Clearly, that
premise is wrong. Despite an increasingly harsh enforcement re-
gime, immigrants have made an important place for themselves in
the labor force.
NCLR believes that negotiations between the United States and
Mexico and the congressional debate they have inspired provide an
historic opportunity to reshape immigration policy in a way that is
responsive both to labor market needs in the United States and the
needs of immigrants themselves. My written statement contains a
set of six policy principles for your consideration. I will highlight
two of them for you now.
Number one, legalization must be a major element of any policy
change. A substantial number of undocumented immigrant workers
are long-term U.S. residents. They work hard, pay taxes, and oth-
erwise abide by our laws. Their futures are inextricably linked with
ours. The interests of the U.S. are best served by allowing these
39
long-term residents to come out of the shadows. Those who can

demonstrate that they have made commitments and have linked
their future to Americas future should be afforded the opportunity
to legalize, regardless of where they are from.
Number two, any temporary worker program that might emerge
from this debate must be markedly different from the status quo.
We acknowledge the reality that some undocumented workers have
come to the United States with the intention of returning to their
home countries. They do not seek to be permanent immigrants and
often end up trapped in the United States because our border con-
trol policies make it too difficult to depart and re-enter, swelling
the ranks of the undocumented. It is reasonable, then, to construct
a temporary worker framework, particularly to regularize future
worker flows. However, this must be markedly different from the
existing temporary worker construct. In particular, it is essential
for any workers who participate to be fully covered by U.S. labor
laws, including the right to change employers, strong protection for
wages and working conditions, the right to unionize, and the ability
to keep their families together. Similarly, it is essential that such
laws be vigorously enforced, by strengthening the Wage and Hour
Division at the United States Department of Labor, as well as by
ensuring that these workers have access to legal services. Finally,
any temporary worker program must also include a path to adjust-
ment of status for its workers; that is, if their labor is needed here
year after year, they should be able to choose to remain in the
United States as immigrants, having demonstrated that their labor
is of value here.
In conclusion, Mr. Chairman, the United States stands at the
threshold of an important opportunity to finally bring rationality
and justice to its immigration laws after decades of failed experi-
ments. Our current immigration law is inconsistent with our eco-
nomic interests, undermines our fundamental values, and is rid-
dled with hypocrisy. Americans know that we rely on the labor of
these hard-working people, and there is strong evidence that they
are likely to support your leadership in doing something about it.
Some say we should do nothing, arguing that legalization would
undermine the rule of law. But it is hard to imagine any situa-
tion more likely to encourage disrespect for the law than the hypoc-
risy inherent in the status quo.
Mr. Chairman, the discussions between the United States and
Mexico have left open the door to the possibility of reform and the
enactment of an immigration law that begins to realign our immi-
gration laws with Americas best traditions and values, as well as
the economic realities that drive migration. I urge you to move for-
ward and make these reforms a reality.
[The prepared statement of Mr. Yzaguirre follows:]
STATEMENT OF RAUL YZAGUIRRE, PRESIDENT, NATIONAL COUNCIL OF LA RAZA,
WASHINGTON, D.C.
INTRODUCTION
My name is Raul Yzaguirre; I am the President of the National Council of La
Raza (NCLR). NCLR is a private, nonprofit, nonpartisan organization established in
1968 to reduce poverty and discrimiNation and improve life opportunities for His-
40
panic Americans. NCLR is the largest constituency-based national Hispanic organi-
zation, serving all Hispanic nationality groups in all regions of the country through
our network of over 250 affiliate community-based groups and regional offices.
NCLR has supported fair and effective immigration policies for over two decades,
and has provided a fact-based Latino perspective on the issue of immigration. NCLR
approaches this issue as a civil rights organization, with an interest in protecting
the rights of our constituency within the United States and promoting the values
and principles of the Nation as a whole. I appreciate the opportunity to appear be-
fore the Subcommittee today.
Mr. Chairman, I want to make it very clear that I believe that this committee,
the Congress as a whole, and the Bush Administration are poised on the verge of
a major opportunity to shape immigration policy in a way that makes sense and
serves the national interest. It is almost impossible to describe to you how impor-
tant this opportunity is to the Nations Latino community. I can tell you that when
the news broke that the Bush Administration might be considering a legalization
program, NCLR was opening its Annual Conference. The thousands of Latino lead-
ers gathered for the Conference were electrified by the news. The response from
within our community, as demonstrated by polls, media coverage, organizing, and
energy in communities throughout the country, has been extraordinary. I can also
say that my colleagues in the National Hispanic Leadership Agenda (NHLA), a coa-
lition of the major organizations in the Latino community, have spoken out on the
issue in letters addressed to President Bush, President Fox, and the U.S. Congress.
I have attached a copy of these letters to my written statement.
The reason for the intensity of focus within the Latino community on this issue
is only partly related to the fact that a substantial number of the Nations Latinos
are immigrants themselves. In fact, according to the 2000 Census, the majority of
U.S. Latinos (60%) are natives of the United States. Nevertheless, Latinos across
the country, immigrants or not, feel the impact of immigration policy because we
live in immigrant families and communities, and many of us, like most Americans,
have strong memories of our immigrant heritage. But immigration is also an issue
of powerful symbolism for us. The debate on immigration policy often feels like an
indicator of respector the lack of itfor the contributions of the larger Latino com-
munity to our common nation, even though most of us are not immigrants. We are
also a community that believes in justice, and the injustice of the Nations current
immigration policy, much of which was crafted in a heavily anti-immigrant era, is
offensive to Americas best traditions and values. We feel connected to the experi-
ence of immigrants whose contributions to our Nation are ignored by our laws and
by the larger community, and who too often experience abuse as a result. During
the last several months we have sensed that America has an historic opportunity
to reshape immigration policy in a way that remedies fundamental injustice, saves
lives, honors the hard work of immigrants which our Nation clearly relies on, and
deals sensibly with the difficult question of the future migration flow. We believe
strongly that it is in the Nations best interest to maximize this opportunity; indeed,
now that the door is open to the possibility of reforms that make immigration policy
consistent with economic reality and Americas most cherished values, we will insist
on getting the job done right.
II. THE OPPORTUNITY TO SHIFT THE DEBATE

In general, NCLR agrees with the major underlying principle of the immigration
debate, which is that, as a sovereign nation, the United States can and should con-
trol its borders. However, NCLR also believes that the enforcement of immigration
laws, like that of all laws, must be nondiscriminatory and consistent with American
values. NCLR also believes that, for the last 15 years, one fundamental premise of
immigration law has been in error. That is, the Immigration Reform and Control
Act of 1986 (IRCA) was based on the premise that there was no place in the U.S.
labor force for migrants from Mexico and other countries. Clearly, that premise was
in error; indeed, most of the sectors that supported the law and its premise have
reached the conclusion that, despite an increasingly harsh enforcement regime, im-
migrants have made an important place for themselves in the labor force. For this
reason, leaders in both the business community and the labor movement are to-
gether arguing that the legalization of these workers is in the national interest.
NCLR believes that a combiNation of factors demonstrate that U.S. immigration
policies have failed to achieve their objectives and are in fundamental conflict with
national needs and values In particular:
The population of undocumented immigrants living and working in the U.S. has
grown steadily since the 1986 immigration reforms. Despite the imposition of pen-
alties against employers who hire undocumented persons and heightened border
41
controls, a substantial and growing number of undocumented workers have found
a place in the U.S. labor force. Credible estimates from the Immigration and Natu-
ralization Service (INS) and the Urban Institute estimate that the size of this popu-
lation is between six and nine million. In addition to the population that crosses
the U.S.-Mexico border illegally, as many as 40% of undocumented migrants enter
on valid visas and overstay them, according to INS. As long as the U.S. economy
needs additional workers, immigrants will continue to come, even at great risk to
their safety.
Enforcement of immigration laws at the border and the interior is conducted in
a way that undermines civil rights. There is widespread evidence of the use of racial
profiling in immigration enforcement and of collaborations between immigration and
local law enforcement officials, which have the effect of undermining the civil rights
of citizens and legal residents who are mistaken for illegal immigrants based solely
on ethnic appearance. In addition, independent studies by government and private
agencies have shown that the employer sanctions policy, through which employers
check the documents of new hires, has caused a widespread pattern of employment
discrimiNation against persons lawfully in the U.S. and U.S. citizens.
An alarming and unacceptable number of deaths take place each year at the U.S.-
Mexico border. Since the initiation of Operation Gatekeeper, a major border control
initiative in the mid-1990s, at least 1700 migrants have lost their lives crossing riv-
ers, deserts, and mountains to find work in the U.S. Just last week, ten more mi-
grants died crossing the U.S.-Mexico border. As you can imagine, like all Americans,
Latinos are horrified by this unacceptable price for our policies. Its important that
we all remember that these are not simple statistics; in a highly emotional event
at our Annual Conference last year, NCLR commemorated each and every migrant
who perished at the border. We read their names and ages, one at a time, to remind
ourselves of our responsibility to those who lost their lives while seeking the Amer-
ican dream.
In addition to these compelling issues that highlight the need for policy change,
there is increasing evidence that a significant legalization program is needed to
maintain U.S. economic growth:
Key growth sectors of the economy increasingly rely on this labor force. Representa-
tives of industries in the service sector, like hotels, restaurants, and nursing homes
have formed an Essential Worker Immigration Coalition (EWIC) which argues in
favor of more generous immigration policies, including the legalization of those al-
ready in the U.S. workforce. These employers note that widespread labor shortages
are a significant constraint on economic growth.
The labor movement argues that legalization of the undocumented workforce is vi-
tally important for protecting the overall U.S. workforce. The AFLCIO, in a unani-
mous decision by its executive council in February of 2000, took the position that
the best way to protect all U.S. workers is to legalize those who are in the workforce
without immigration papers. Unions argue that employers can ignore labor laws and
undermine organizing campaigns for those workers who lack immigration status,
because workers who complain run the risk of deportation. This dramatic shift in
labor movement policy underscores the scale and importance of the undocumented
workforce.
These developments are consistent with the views of economic experts who confirm
the overall benefits of immigration A recent study by the North American Integra-
tion and Development Center at the University of California, Los Angeles estimates
that undocumented workers from Mexico (3 million workers) contribute $154 billion
to the US GNP and $77 billion to the GSP of California alone. In 1997, the pres-
tigious National Academy of Sciences found that immigrants contribute about $10
billion to the Nations economy per year and pay more in taxes than they use in
services. In addition, in Congressional testimony presented in July of 2001, Federal
Reserve Board Chairman Alan Greenspan said, Ive always argued that this coun-
try has benefited immensely from the fact that we draw people from all over the
world. And the average immigrant comes from a less benign environment, and in-
deed thats the reason theyve come here. And I think they appreciate the benefits
of this country more than those of us who were born here. And it shows in their
entrepreneurship, their enterprise, and their willingness to do the types of work
that make this economy function.
There is substantial evidence that the American public is prepared to support sub-
stantial reforms. A recent poll conducted by a bipartisan team, Lake Snell Perry &
Associates and The Tarrance Group, sheds light on the publics view of these issues.
They found that while voters are divided on the issue of legalization before they
hear details of a proposal, once the issue is explained in terms of undocumented im-
migrants who can prove that they have lived, worked, and paid taxes in the United
States, 59% of American voters, reflecting every demographic group, support the
42
proposal.Indeed, NCLR believes that it is more clear than ever to the American pub-
lic that our economy depends on this labor force, and that it is not in the national
interest to allow the status quo to continue.
III. PRINCIPLES FOR THE CURRENT DEBATE
NCLR believes that negotiations between the United States and Mexico, and the
Congressional debate that they have inspired, provide an historic opportunity to re-
shape immigration policy in a way that is responsive both to labor market needs
in the U.S. and the needs of immigrants themselves.In particular, these discussions
could create a coherent and more effective alternative to the current immigration
control regime, which is ineffective, discriminatory, and inconsistent with both our
national values and economic interests. However, this process also creates substan-
tial risks. In order to maximize positive policy opportunities and minimize dangers,
NCLR believes:
1) Legalization must be a major element of any policy change. A substantial
number of undocumented immigrant workers: are long-term U.S. residents,
work hard, pay taxes, and otherwise abide by our laws. Their futures are
inextricably linked with ours. The interests of the U.S. are best served by
allowing these long-term residents to come out of the shadows. Those who
can demonstrate that theyve made those commitments and have linked
their future to Americas future should be afforded the opportunity to legal-
ize.While this discussion is taking place in the context of negotiations be-
tween the U.S. and Mexico, it makes little sense from the U.S. perspective
to provide legalization opportunities only for Mexicans; all those similarly
situated should have the same opportunity.
2) Temporary worker programs by themselves are not a viable long-term pol-
icy option. The Nations history with guestworker programs, which have
mostly applied to agriculture, has been a highly negative one. NCLR has
opposed all proposed expansions to these programs because they undercut
workers rights by offering few labor protections, tie workers to individual
employers, and provide no opportunities for adjustment of status. Indeed,
temporary worker programs have become notorious in the Latino commu-
nity because of their historyand realityof abuse. There is a real danger
that the current debate will simply follow the structure that has been in
place since the days of the bracero program; indeed, one such proposal is
being talked about in the U.S. Senate. If such a proposal were to emerge
from the negotiations between the U.S. and Mexico, or in the legislative
process, NCLR would have no choice but to oppose it vigorously.
3) Any temporary worker program that might emerge from this debate must
be markedly different from the status quo. We acknowledge the reality that
some undocumented workers come to the U.S. with the intention of return-
ing to their home countries. They do not seek to be immigrants, and often
end up trapped in the United States because our border control policies
make it to difficult to depart and re-enter, swelling the ranks of the undocu-
mented. It is reasonable, then, to construct a temporary worker framework,
particularly to regularize future worker flows. However, this must be
markedly different from the existing temporary worker construct. In par-
ticular, it is essential for any workers who participate to be fully covered
by U.S. labor laws, including the right to change employers, strong protec-
tions for wages and working conditions, the right to unionize, and the abil-
ity to keep their families together. Similarly, it is essential that such laws
be vigorously enforced, by strengthening the Wage and Hour division at the
U.S. Department of Labor as well as by ensuring that these workers have
access to legal services. Finally, any temporary worker program must also
include a path to adjustment of status for its workers; that is, if their labor
is needed here year after year, they should be able to choose to remain in
the United States as immigrants, having demonstrated that their labor is
of value here.
Immigration enforcement must be conducted strategically. Even a successful
temporary worker structure would not eliminate the need to conduct immi-
gration enforcement at U.S. borders and the interior. But this enforcement
must be conducted strategically, aimed at large scale smugglers and em-
ployer networks that deliberately import workers from other countries in
order to skirt U.S. wage and other laws that aim to protect workers. En-
forcement at the border and the interior must also be conducted according
to a strict set of standards to protect the civil and human rights of those
who come into contact with enforcement personnel. In addition, the ineffec-
43
tive and discriminatory employer sanctions regime should be replaced by a
new system that emphasizes labor law enforcement and eliminates the eco-
nomic incentive for unscrupulous employers to hire unauthorized workers.
5) Economic development efforts must be targeted to create opportunity in
areas where migrants originate. If the experience of the 15 years since
IRCA has taught us anything, it is that even the toughest laws, vigorously
enforced, are no match for the economic forces that drive migration. As the
U.S. properly revises the laws that affect what happens within its borders,
it must also look closely at the so-called push factors that drive migration.
In the long term, if we wish to alter the migrant stream that originates in
Mexico and other countries, we must include economic development in
those communities as part of our overall migration strategy.
6) The situation of agricultural workers is a special case that must be con-
sidered carefully. NCLR believes very strongly that no policy reforms affect-
ing immigrants would be complete without taking into account the par-
ticular concerns of the farmworker community, which is overwhelmingly
Latino with a significant proportion of undocumented immigrants. It is also
true that the agricultural sector operates under an entirely different set of
rules than the rest of the labor force, including far weaker labor protec-
tions. This, along with a history of temporary worker programs that offer
unsufficient protections to workers, has contributed to an abysmal situation
for Americas farmworkers which has not improved for decades. Recently,
representatives of the agricultural industry and the United Farmworkers of
America held historic discussions and agreed in principle on a set of policy
alternatives that both sides can live with. Though the results of these dis-
cussions have not yet been presented as a legislative proposal for others to
respond to, NCLR believes that these organizations have moved the debate
forward in a positive direction. If the negotiated agreement has not moved
forward on its own as immigration legislation proceeds, it is important to
ensure that its provisions are reflected in broader immigration reforms.
IV. CONCLUSION
In conclusion, Mr. Chairman, the United States stands at the threshold of an im-
portant opportunity to finally bring rationality and justice to its immigration laws
after decades of failed experiments. Our current immigration law is inconsistent
with our economic interests, undermines our fundamental values, and is riddled
with hypocrisy. To potential immigrants our law shouts, We dont want you! while
our economy whispers, Come on over, we need your labor. Our law says hiring un-
documented workers is illegal, but winks at the existence of an unauthorized work-
force demographers estimate to be 69 million people. The law is supposed to pro-
tect American jobs; instead, it tolerates a subclass of undocumented workers with
no labor rights, thus undermining wages, working conditions, and organizing oppor-
tunities of all workers. We sanctify family values, while spouses and children of
U.S. citizens abroad must wait years to come here legally because of lengthy INS
backlogs; it shocks no one that many choose to reunite with their families, even if
its means entering or staying illegally. Some say we should do nothing, arguing that
legalization would undermine the rule of law. But its hard to imagine any situa-
tion more likely to encourage disrespect for the law than the hypocrisy inherent in
the status quo.
Mr. Chairman, the discussions between the United States and Mexico haveleft
open the door to the possibility of reform and the enactment of an immigration law
that begins to realign our immigration laws with Americas best traditions and val-
ues, as well as with the economic realities that drive migration. I urge you to move
forward and make these reforms a reality.
Mr. Sweeney, one of the concerns that labor has had historically
has been that the number of undocumented workers that have
come into the United States have a depressing effect on the wages
of American workers. I would like to know your thoughts on the
issue. What are your feelings about that now? How concerned are
you that if we have a program of normalization, of these workers,
do you think that that will depress the wages of our American citi-
zens now, whether they be as a result of citizenship or because
they were born here?
44
Mr. SWEENEY. No, Senator. Quite the contrary, I really feel that
true immigration reform, giving permanent legal status to these
workers and to all immigrantsthis is not just about one ethnic
group; it is about all immigrantsand providing workplace protec-
tions is going to improve their lives and going to bring stability, as
Tom Donohue mentioned in his remarks. I think also that this will
not only stabilize but will improve the lives of these workers and
will satisfy or put to rest whatever concerns there might be, be-
cause it is quite the contrary now. In many cases we are seeing
workers being exploited and even being paid less than the min-
imum wage and the wage and hour laws not being enforced. And
I think that that is one of the reasons that we are so strongly advo-
cating true immigration reform.
Senator KENNEDY. So your position is that the exploitation is
going on now and that these workers may be taking jobs away from
Americans working for subsistence or less than subsistence wages
and that that is depressing, while if they have their situation ad-
justed and their rights protected, that whole group of workers will
be able to have a dollars pay for a dollars work.
Mr. SWEENEY. They will get the same protection and the same
wages as other workers in their industries and in many cases
working alongside of them. We had a rally on the steps of the Cap-
itol, or a press conference the other day, and had a number of
workers from different countries around the world who are victims
of the discrimiNation and exploitation. We also had workers who
are U.S.-born workers who are working alongside of these workers
tell us stories about the wage differences and the gaps that exist
in terms of benefits and so on, and there is a strong feeling among
workers that with immigration reform it will be the fair and just
way to address this situation.
Senator KENNEDY. Let me ask you, Mr. Donohue, the Chamber
supports the legalization as a component of immigration reform.
Why?
Mr. DONOHUE. I think this is a sequence. First of all, we need
8 or 9 million or 11 million workers, whatever it is now. There are
going to be some more. And our support for legalization is a proc-
ess. It is not an immediate waving of a wand. I dont think every-
body that is here in this country ought to be legalized overnight.
I think there ought to be a progression in that direction.
If we sent all 8 or 9 million workers home tomorrow, we would
figure out a way to get them back the next day. They would come
here somehow. And I believe that we need to have a legalization
issue because many of these folks are essential to our economy.
They have earned the respect and the right to be workers for the
many years that they have worked here and their contribution to
the economy. And I dont sit here as an expert, Mr. Chairman, and
tell you how to do that, but I think we needthat is why I think
a guest worker thingwe will call it something else if John
wantsso that we can identify folks, puts them on a sequence that
gets them approved and gets them an orderly invite and participa-
tion in our workforce. And then, by the way, we have to start
thinking about what are we going to do going down the road when
we are going to need incremental workers because of all the retire-
ments and all the demand.
45
So I think you are really challenged in the Committee to find two

solutions: one to our current situation, and as you said in some of
your opening remarks, and as Senator Brownback and others did,
we dont want to reinvent this problem going down the road 10
years from now or 5 years from now. So lets figure out a way to
meet our worker needs.
I agree with Mr. Sweeney that this will stabilize the wage base.
I agree that probably you can find examples of abuse. I hope to get
rid of them, although most of the illegal immigrants are engaged
with companies and organizations that treat them fairly. There are
exceptions, I agree to that. So I think, Mr. Chairman, we have to
find something to do now. We have to find something to do later.
And legalization as a part of that process I think is in order, but
not a wholesale, wave the wand, everybody is legal.
Senator KENNEDY. From the business communitys view, is it de-
sirable to have immigration policy that is only for Mexicans, or are
you prepared to make this recommendation with regards to all of
the undocumented?
Mr. DONOHUE. Well, first of all, all of us sitting here, by the way,
are from families that in one form or another have emigrated here.
And I certainly believe that it ought to be very broad-based in
terms of who is working here and how they might work into the
system and how others may be able to come here in years forward.
The only reason that all of us are focusing on the Mexican issue
with such intensity is that a large, large number of the immigrants
that are illegally or semi-illegally working here in the United
States is because they walked here, you know, or they drove here
and because, if you think about California and Florida and Arizona
and Texas and the industries that have sprung up there, as well
as other places in your own States, there has been a great oppor-
tunity to hire Hispanics.
We just announced the other dayat another time I hope we can
talk, Mr. Chairmana massive issue, working very closely with
the labor unions, to encourage Government to continue to invest in
all the infrastructure they collect money for. The labor union lead-
ers, one of the first things they wanted to talk about was the immi-
gration issue and how not only do we have to fix this up, Tom, but
we need more of them. And this is a very difficult, emotional, and
political issue, but the bottom line is this is not a matter of choice.
This is a matter of the people we need to work in this economy and
to pay jobs, and some of them John will organize.
Senator KENNEDY. Raul, I would like to ask you this question:
The opponents of legalization say that legalizing undocumented
persons would only be rewarding criminals. Yet we havent really
examined what that means. The presence of undocumented work-
ers is tolerated because their labor has become so important to our
economy, as we heard again today. Indeed, we have come to depend
on this labor. Undocumented immigrants themselves are here for
no more sinister a reason than to work hard and provide a decent
life for their families. If this is criminal, how seriously should it be
punished?
Could you comment on the rhetoric being used in the debate for
those that are opposed to normalization?
46
Mr. YZAGUIRRE. Thank you, Mr. Chairman. It is a pernicious use

of language to call somebody who is trying to find a job and trying
to feed his family and trying to act in the best traditions of Amer-
ica a criminal. But if it is criminal, then we are all criminals in
the sense that we are all benefiting from that criminality. We are
all conspirators after the fact. You know, we are allwhen we go
to a restaurant and we eat a meal, we enjoy the profit of their
work. When we buy a head of lettuce that is a lot cheaper because
of the presence of undocumented workers, we are co-conspirators in
that criminality, if you will.
So if it is criminal, then all of us, Mr. Chairman, are criminals,
and I dont think that is the case.
Senator KENNEDY. Good answer.
[Laughter.]
Senator BROWNBACK. No rebuttal.
Senator KENNEDY. Senator Brownback?
Senator BROWNBACK. Thank you, Mr. Chairman.
This is an impressive panel. May I suggest to you that if we
could take this on a road show, it would be very helpful across the
country and across even the Capitol, here to the other side of the
Capitol would be good, too.
The President has noted we had, I think, an excellent week to
really bring this topic to the forefront of the thinking across Amer-
ica, a number of people across the American public. And your com-
ing together here I think is a great statement as well.
We need to move this debate forward across the Nation and not
just in Washington, and so I am hopeful that your groups will con-
tinue to work together in forming a broad-based, left-right coali-
tion, however you want to designate it, to press this issue because
anytime we have discussed immigration, immigration reform, im-
migration issues in the United States, if you look at the history of
thatand I am just recently on this panel, but the history of this
is pretty clear. These have been raucous debates, have been dif-
ficult issues in the country. For whatever reason, even though we
are a Nation of immigrants, we all acknowledge that, but for what-
ever reason, this is always a difficult one for us to have. And your
organizations represent key groups that could really, I think, soften
the tone and tenor and bring some sanity and rationality to that
debate. And I would really like to encourage you to do that, to join
arms as much as you would be willing to do, because this will be
no matter how you put it, this is going to be a difficult debate on
Capitol Hill.
If I look at the calls into my office, this is going to be athis will
be a difficult debate and discussion. And as Senator Specter men-
tioned, at the town hall meetings that he had, this is going to be
a point on which you could help us out a great deal.
Mr. DONOHUE. Senator, if I just might mention, on September
the 19th, the Chambers foundation, which you may recall has re-
cently run seminars and symposiums on the energy crisis and
issues of airline problems and so on, is having a major activity, a
major event on this subject, and we are hopeful that weand we
are sure we will have participation by labor and the Congress and
the White House and interest groups and so on. We are just wrap-
ping some of that up, and I think it continues the debate, and we
47
will take it around the country. I would love to travel with John
to talk about these issues. Anywhere, you know, I will be there.
Senator BROWNBACK. Good.
Mr. SWEENEY. Senator, we have done a number of town hall
meetings around the country, and maybe at the next one we will
have Tom Donohue with us. But we have gotten as many as 20,000
people in Los Angeles at one town hall meeting and have had simi-
lar events in different parts of the country, and we are doing every-
thing we can to educate people on the issue and to get their views
in terms of what changes they think should take place.
Senator BROWNBACK. Good, good. Raul, I hope you will join in
with the discussion and traveling road show as well.
Mr. YZAGUIRRE. I would be delighted.
Senator BROWNBACK. Very good. You can score these votes, too,
John, and I can raise my labor score, my voting card. That would
be helpful, too.
[Laughter.]
Mr. DONOHUE. Good luck.
Senator BROWNBACK. I am trying, I am trying.
Mr. DONOHUE. You have got time.
Senator BROWNBACK. Mr. Sweeney, you had noted that you think
that we shouldin your specific suggestions, the employer sanc-
tions and the I9 system should be replaced with a system that
targetsI am just reading from your testimonyand criminalizes
business behavior that exploits workers for commercial gain... I
am interested in that point because it seems to me that a number
of employers do attempt to hire people legally. They look at the
documents to the degree that they can. I have seen a number of
these false documents that are very good, and that this criminaliza-
tion system that we currently have is really trying to penalize at
the wrong point.
Do I take it from your statement here you agree with that and
think that that system of employer sanctions should be dramati-
cally changed?
Mr. SWEENEY. Yes.
Senator BROWNBACK. Do you have then specifics of where you
think we should be targeting to try to get at those areas that do
exploit workers for commercial gain?
Mr. SWEENEY. We would be glad to meet with your staff and
share our experiences and what recommendations we might have
or considerations for you.
Senator BROWNBACK. Good, because I think that is an important
area to deal with. Right now I dont think the system is working
at all in that regard.
I dont know, Mr. Donohue, if you have anything from your expe-
rience.
Mr. DONOHUE. I dont think the system is working. The place
where John Sweeney is absolutely correct is that if you took and
had people that were no longer illegal but they were on some for-
mal status and that, if we agree, they would all have the same pro-
tection of the law, then a lot of the existing law outside the immi-
gration area, a lot of the existing law would immediately affect
these workers because if they were not being appropriately treated,
they would not be afraid to bring that to the attention of the au-
48
thorities. Now, if you are undocumented, if you are illegal, as John

says, you are not going to do that.
I am not sure how much additional law we have to add. I think
we have to put people under the existing protections, and I abso-
lutely agree with John that the current system is counter-
productive.
Senator BROWNBACK. Mr. Yzaguirre, what are your comments on
this?
Mr. YZAGUIRRE. Well, Mr. Chairman, we opposed employer sanc-
tions in 1986. We predicted that they would be ineffective and that
they would cause widespread discrimiNation among Latinos. We
insisted on a provision in the Act that would mandate GAO to do
a study. That study showed massive, even larger levels of discrimi-
Nation than even we had anticipated.
At that time we proposed what we call a pattern and practice ap-
proach, that is, look at whobecause there is a high correlation be-
tween those people who hire undocumented workers for exploi-
tation and the fact that they are abusing existing wage and hour
and working condition laws. So a pattern and practice approach fo-
cusing on the Department of Labor Wage and House Division is,
I think, a much more effective and much more appropriate way to
deal with that problem.
Senator BROWNBACK. That is a very good suggestion. I look for-
ward to working with each of you on that issue. I just might say
broadly I look forward to working with each of your organizations
as we craft this proposal to move on forward, both as we craft a
specific bill and efforts to move this forward on what the President
outlined, on what I think has broadly been discussed here today,
and then also as we attempt to move it through the Senate and
through the House, which this is going to take a lot of effort on a
lot of peoples part. So I am hopeful we can do that as a team and
be at the end of the day quite successful with something that
should stand the test of time instead of more recent changes that
we have made that have been more reactionary and in my esti-
mation have not worked well in the interest of this country or in
the interest of the people that desire to come to this country.
Thank you very much.
Senator SPECTER. Mr. Yzaguirre, I think you made a very spir-
ited and excellent response to the question about legalizing undocu-
mented persons would be only rewarding criminals. I dont think
in the question there was any suggestion that the questioner
thought we would be rewarding criminals. And I think it really in-
appropriate to talk about immigrants who come to this country ille-
gally as being criminals. They really arent. But I must say, having
done some work in the field, people who buy the heads of lettuce
and eat in the restaurants would not be co-conspirators or acces-
sories after the fact. I think we ought to eliminate all of that kind
of concern and really try to figure out how to treat all the people
fairly and respond to a very, very serious problem.
Mr. Sweeney, I believe I understood you correctly to say that
you used the word guarantee that there are no U.S. workers
available for these jobs, and that is what I hear in my travels
around my State. How do you do that? How do you have that kind
49
of a guarantee that there are no U.S. workers who are available

for these jobs?
Mr. SWEENEY. Well, I think we have to do a lot better job at
labor market tests and especially with the guest worker program.
But I think that we can really have better reports and a better
handle on what the situation is in different industries and different
job classifications.
Senator SPECTER. And when you talk about giving these workers
protection, certainly they are exploited. There are very frequent re-
ports of families being exploited, in unlivable conditions, in shan-
ties, and transported in trucks and all sorts of difficulties. But
when you have a group of people who are concerned about being
apprehended or about being returned to Mexico, you dont have
people who are in a position to make any complaint. So it is very
hard to give them protection when they are not in a position to
come up and defend themselves and identify the mistreatment or
perhaps illegal treatment they are being subjected to.
How do you work on that one?
Mr. SWEENEY. Well, we start off with permanent legalization sta-
tus for these workers, giving them the same kind of rights as work-
ers who have been born in the United States, and giving them the
entitlement to all of the protection laws, as well as the benefit
laws, the social network that is available to workers and, we add,
also gives them the right to organize if that is their desire.
Senator SPECTER. Mr. Donohue, your point about the necessity
for workers is obviously correct. Mr. Sweeney, you wouldnt dis-
agree that there is a worker shortage, at least in some places,
would you?
Mr. SWEENEY. No, no, I dont disagree with that.
Senator SPECTER. The question then arises as to whether we
ought to have a different immigration policy as to other places. We
had a terrible time getting H1B expansion. I recall working on
this Subcommittee a decade ago, taking the Chamber of Com-
merces position to try to expand that line. And even when you are
dealing with Ph.D.s and M.D.s, you have, on lines which are not
available in the United States, grave, grave difficulties.
I might recount a story which is pretty close to the point. I had
a chance toSenator Shelby and I met with Saddam Hussein in
1990 before the Gulf War, and Saddam Hussein was complaining
to us about U.S. immigration policy. Interesting that he would have
a concern about it. And his point was that all the Russian Jewish
immigrants were being sent to Israel and why werent they coming
to the United States. And I knew that he knew that I was Jewish,
but I wanted him to know that I knew that he knew that I knew.
[Laughter.]
Senator SPECTER. And I told him that is a very sore subject with
me because my father was a Russian immigrant who came to the
United States. But only 50,000 Russians are permitted to enter the
United States a year, and it is not that all of the rest of them
we are not trying to send everybody to Israel, but there are limita-
tions.
And I have raised the question on our policy again and again, be-
yond the H1B, where I think it is a pretty clear proposition, but
how about broadening immigration from other places to meet the
50
kind of needs that we are concerned about? How about it, Mr.
Donohue?
Mr. DONOHUE. Senator, there was a study done by the Employ-
ment Policy Foundation, and while I think it is supported by busi-
ness, there is something in here that is not an arguable issue on
policy. It is a set of numbers. And it points out, as somebody re-
ported in the testimony, we have about 140 million people working
in the United States today, and based on our calculations of need,
we will need about 200 million by 2030, and based on who has been
born, we will end up withand this includes illegal immigrants in
here. We will end up with about 165 million.
So, clearly, on an ongoing basis, we are going to have a gap of
about 35 million people. And today we are talking about illegal im-
migrants that bump up againstlets say we would maybe agree
on 10 million. So we are going to haveand those illegal immi-
grants are already counted in the numbers. So we are going to
have adequate opportunity to expand immigration all about the
world.
Now, let me make it clear. On the H1B visas, which you have
been an extraordinary supporter of, those are a very small number
of very, very high-skilled people. And we bring them for two rea-
sons: one, we need them and, two, it is just as easy to send the
work where they are. You know, you can put a lot of technical stuff
on a satellite and send it to India every night. We wanted to keep
a lot of that business and a lot of that skill here in the United
States.
But what John and I are primarily talking about here is the bot-
tom part of the triangle, the core of the people that run the Amer-
ican economy, not the guy that is a Ph.D. that ends up at Cal Tech
or ends up at, you know, Intel trying to figure outwe are talking
about the people that do everything to make that possible. And I
think you are right on the core here, and that is, what do we do
going forward so that we are not sitting back here and our children
are there and here saying, you know, we have got 35 million illegal
immigrants here, because the bottom line is we are going to get the
people we need. And this country, with all of its faults, is still the
place where people walk, swim, fly, do whatever they can to get
here for great opportunity.
So I think you are on to the issue, and that is, what do we do
about the core workers we need to move this society forward? What
do we do about the unemployment? A lot of that is geographic. You
have people in your State who dont plan to move to New Mexico
or Arizona or Florida. These are serious challenges. But I think you
are asking the right questions, and we look forward to working
with you because this is one issueit is not a policy question of
we are going to have this tax or that tax or this regulation or that
regulation. It is all about whether there is going to be anybody to
work here or not.
Senator SPECTER. Mr. Sweeney, if we were to open up the portals
for more immigrants, look at the some of the projections, how are
your constituents and my constituents going to respond to that?
Mr. SWEENEY. Well, Senator, I think that people understand the
abuses of our present immigration system, and I think that legal-
ization, changing and providing for legalization status is going to
51
be a major step in the right direction. I believe that these workers

having the same protection and being treated the same as workers
born in the United States is going to relieve a lot of the pressures
and a lot of the problems.
And I go back, just to follow up on your original question and
Toms statement, that we really have to have a process with the
expertise that is required to determine what the labor market situ-
ation is in these industries and jobs and so on. We are kidding our-
selves if we are providing for workers of certain skills to come to
this country and then placing them in entry-level jobs, which is the
current situation in many cases, especially in the high-tech indus-
try.
Senator SPECTER. Thank you very much.
I want to express my regrets to Mr. Norquist and Mr.
Deffenbaugh and Mr. Moore of the last panel. This has been a long
hearing. We are at about 2 hours and 15 minutes, and I cannot
stay. But I will be checking the transcript.
Thank you.
Senator BROWNBACK. [Presiding.] Thank you very much. This is
an excellent panel, and we look forward to working with each of
you on a very important and very difficult subject.
Mr. DONOHUE. Thank you.
Mr. SWEENEY. Thank you.
Mr. YZAGUIRRE. Thank you, Senator.
Senator BROWNBACK. I would like to now welcome our third and
final panel which consists of Grover Norquist, executive director of
Americans for Tax Reform; Ralston Deffenbaugh, Jr., president of
the Lutheran Immigration and Refugee Service; and Stephen
Moore, a senior fellow at the Cato Institute. I think their testi-
monies reflect the views of all types of organizations that have a
longstanding interest in our countrys immigration policies, and we
will look forward to their testimony.
Senator KENNEDY. I, too, want to join in the welcome. I was nec-
essarily out for a moment, but I am very glad to have all of you
here, an impressive morning, and continuing with the panel that
we are about to hear from. I know of few public policy issues where
we have been able to develop the range and kind of support where
there was such diversity in such a short period of time. So it is
very important that we pull this information together for the ben-
efit of our Committee, the Senate, and for the American people. So
we are grateful to all of you.
Senator BROWNBACK. Mr. Norquist, would you like to go ahead
with your presentation?
STATEMENT OF GROVER NORQUIST, PRESIDENT, AMERICANS
FOR TAX REFORM, WASHINGTON, D.C.
Mr. NORQUIST. Yes, certainly. I have submitted some written tes-
timony. I would like to start off by pointing out that immigration
is good for the country, it has been good for the country, it will con-
tinue to be good for the country. It is a truism that the country was
built by and for and with immigrants, but some truisms become
truisms because they are true. And I think it is important to keep
reminding ourselves of this. It is not just folklore or myth or some-
thing we like to think. It is actually accurate.
52
The United States is different from other countries. We are not

a peoplewe are not all the same ethnic group. We didnt all speak
the same language when we started. We dont all have the same
religion. What we have in common is a dedication to individual lib-
erty and to the Constitution, and I submitted as part of my testi-
mony the oath you take to become an American. It doesnt ask you
where you came from, what your religion is, what color you are. It
asks you: Are you willing to support the Constitution? And then we
want you to be a citizen.
Second, immigration is not only good for the country, it is a sign
of health of the country. When you look around the world, success-
ful countries have people wanting to get into them. Unsuccessful
countries have people leaving them. And I think that it is very im-
portant for us to keep an eye on this. Back in the 1950s and 1960s,
a lot of very stupid people with Ph.D.s wrote a lot of silly things
about the decline of the West and the Soviet Union used its eco-
nomic faculties better than we did and socialism was going to beat
us. And then in the 1980s, a lot of very silly people with Ph.D.s
wrote about how Japan was going to outpace us because we didnt
need labor markets and we didnt need capital markets, we needed
12 smart guys at MITI determining how to run things.
Well, you know, Galbraith was wrong about the Soviet Union,
and the people who wrote about the decline were wrong about
Japan. But you didnt need a Ph.D. If you had stood at the border,
if you had stood at an airport and figured out which direction peo-
ple were going, you would have understood which countries were
forward-looking and winning and which countries were losing and
failing.
I am glad we have more immigrants. I am even glad we have de-
bates over immigrants. This last weekend, I was talking to the
lovely and talented Ann Coulter, who said she is not offended in
New York by construction workers who whistle at her. She worries
if someday they stop whistling at her. I worry about her country
if we stop having a debate about immigration. It would mean we
are not having immigration, and that ought to tell us that there
was something very, very wrong.
A couple of quick points. Should we go with Mexico first? And
some people say, well, it is not fair to regularize Mexican immigra-
tion before other states. When we brought Canada into NAFTA, it
wasnt an insult to Mexico. We just did Canada first. When we
brought Mexico into our free trade agreement, it wasnt an insult
to Chile. It wasnt some statement that we didnt like Brazil. We
did it bilaterally. We did it step by step. I hope that we will have
a free trade agreement with the entire hemisphereheck, eventu-
ally with the world, and we can do the same thing in regularizing
immigration, do Mexico first and go on state by state. There is
nothing wrong with taking one step first and then others.
Next thought. Some people say, well, this rewards illegal behav-
ior if you regularize the people who crossed the border. A couple
thoughts on that. One of them might be, if you have people who
are here, who have been working, is to say to them, look, we are
going to regularize you, we are going to give you a piece of paper
so that you dont worry about a knock in the middle of the night
from the INS, so your employer doesnt worry that, you know, the
53
Government is going to burst into his or her business and start ar-
resting people and, you know, do some watered-down version of Op-
eration Keelhaul out of the United States and across the border,
but that one can get your paper and go get in line for full citizen-
ship and so on, as if you had just shown up in Mexico City and ap-
plied for citizenship, so you werent jumping the queue but you
spent your time waiting in line here, not deported from the United
States or in fear of that.
Third thought. Some people in the past have said, well, we are
hostile to the idea of immigration because they will all go on wel-
fare and it will be a drain on taxpayers. Actually, I had a debate
with the former head of the National Review who gave a speech
that we shouldnt have immigration, they will all go on welfare. He
gave a big speech. And I said you have just given a great speech
against the welfare state but not against immigration. He said, yes,
but we cant reform welfare, so we are just going to have to shut
off the immigration.
Well, in point of fact, you did reform a great deal of welfare, and
I think we have greatly reduced the fear on some taxpayers part
that more immigrants means more people on welfare. Certainly
there is more to be done on welfare reform, but I think that took
an argument off the table.
Two other quick thoughts. One is, when we have more folks com-
ing here from Mexico and the rest of the world, I think we need
to treat them the way we treated citizens that came here before.
I am very concerned about the re-emergence of snob zoning laws.
I am originally from Massachusetts, and we had what were called
snob zoning laws when people in the suburbs of Massachusetts
didnt want the ethnics moving out into their neighborhoods. Re-
cently, snob zoning laws have been painted green, and they are
now called anti-sprawl laws, but it is the same reasoning, it is the
same thing. It is now we just dont want all these Hispanics mov-
ing to our neighborhood because they will scare the trees. And I
think we ought not to say to people, Glad to have you in the coun-
try, but we have got these little bantu stands called cities that you
are allowed to live in, we wouldnt want you in rural or suburban
America.
Second, I think it is also important that we give these people real
protection, the protection all Americans have, so that nobody has
to pay off anyone or go through any hoops on this side to get a job.
I have talked to Hispanics who are worried that labor union guys
come to them and say, You want protection, you got to pay union
dues. No one should feel they have to pay union dues to keep their
job or stay in the country. We need to put an end to that, and pro-
tection against that kind of exploitation of both immigrant labor as
well as domestic labor.
And, lastly, while we are on it, I think it is important that we
move forward on President Bushs commitment and the commit-
ment of many of you in the Senate to get rid of the secret evidence
laws which have been used to discriminate against Muslims and
Arabs in this country. And I would support the efforts that were
started with Senator Abraham and others in this body to get rid
of those laws.
Thank you.
54
[The prepared statement of Mr. Norquist follows:]

STATEMENT OF GROVER NORQUIST, PRESIDENT, AMERICANS FOR TAX REFORM,
WASHINGTON, D.C.
I thank you for your kind invitation to speak about an issue that should remind
us all of what our country represents. Reexamining our approach to Mexican immi-
gration is, of course, timely, but it is also an important opportunity for us to con-
template what makes the United States so special, and how pivotal our relationship
with Mexico is for the long-term economic vitality of the entire Western Hemi-
sphere.
A NATION OF IMMIGRANTS
Almost all Americans can trace their roots to another country, or several coun-
tries. Most modern nations have sizable shares of residents who are either recent
immigrants or descendents of immigrants. But the United States has historically
been, and in my opinion should continue to be, the favored destiNation of those
around the world who seek a better life for themselves and their families. Immi-
grants benefit from the chance to work hard and succeed, and the United States
benefits from their contribution to our economy and society. Our increasingly multi-
ethnic Nation has grown stronger as it has become more diverse, with all its people
bound together by a shared belief in the Constitution and the freedom it guarantees.
The United States is a marvelous place indeed, and its only getting better.
So one could hardly blame Mexicans for looking towards the north for oppor-
tunity. Although Mexico is quickly becoming a flourishing Nation (thanks in no
small part to NAFTA), it is understandable why many are so willing to risk entering
this country illegally: the grass is greener on our side of the border at the moment.
But it is also imperative that we should allow them to come to the United States
legally, and return to Mexico as frequently as necessary: doing so would have the
ultimate effect of reducing the constant pressure now exerted on the other side of
our southern border. This pressure is expensive to combat, and counterproductive
to the existing positive relationship between the United States and Mexico. It would
make far more sense for this pressure to simply be relieved.
Many Mexicans want to work in the United States temporarily, with the ability
to regularly return to Mexico on occasion. But getting into the United States ille-
gally keeps them here indefinitely, because under current law the hazards of fre-
quently exiting and reentering are too great.
Our best course of action would be to maintain the strength and integrity of our
border, but allow it to become more flexible. This can be achieved through expand-
ing temporary worker programs, increasing cross-border mobility, and extending
permanent legal residencybut not necessarily citizenshipto those who qualify.
We would all be well served to remember that our neighbors in Mexico would be
coming here to work, not to go on welfare. And although many of them would have
no desire to become American citizens, it would be a credit to the American Way
to offer them the option. Doubtlessly, we welcome them to join us in our shared pur-
suit of happiness.
I am pleased to see that interest groups across the political spectrum (even the
AFL-CIO) are becoming less hostile to immigration. As a nation, we are more wel-
coming than ever before, but we still have much progress to make. Giving Mexican
workers a chance to live the American Dream, or simply earn a fleeting glimpse of
it if they so choose, would be an enormous advance in and of itself, and is the right
thing to do.
PEOPLE ARE THE ULTIMATE NATURAL RESOURCE
The United States is a vast place, and compared to a great many other countries,
especially those in Europe, it has a very low overall population density. There is
ample space to accommodate newcomers, and there is now, as ever, a pressing need
to allow immigrants to help us realize our Nations maximum potential. With many
jobs begging to be filled, and many Mexicans willing to do them, its in our national
interest to establish a coherent framework whereby the needs of employers and
their prospective employees can be satisfied, despite differences of nationality.
Make no mistake: immigrants do not take jobs from citizens, they create jobs for
all of us by doing the hard work that increases our Nations productive capacities,
which in turn fuels economic growth. A rising tide lifts all boats, including a multi-
national tide.
I would be remiss were I not to address here the false issue of urban sprawl.
Now called anti-sprawl legislation, it used to be called snob zoning. Its goal was
55
the same then as it is now: to keep them out of our neighborhood. Overcoming
this odd obsession that afflicts far too many policymakers is as important as legal-
izing the honest work of immigrants. After all, they need places to live, and as I
already noted, there is plenty of physical space in this expansive country for them.
Anti-sprawl laws and regulations not only cause unjustifiable hassles for citizens
seeking to find suitable housing, they act as barriers to immigration by reducing the
potential housing stock.
WE SHOULD TREAT IMMIGRANTS WITH THE SAME DIGNITY AS WE TREAT CITIZENS
Our policies concerning immigration should be consistent with our Nations com-
mitment to civil liberties. The United States was founded on a belief that all people
have certain inalienable rights that no government has the authority to confer or
the power to rescind. Aggressively rounding up suspicious immigrants and sum-
marily sending them back without giving them a fair chance to demonstrate how
they can make a valuable contribution to their hosts commonwealth is evocative of
totalitarianism. Granting them legal residency, even temporarily, is not just hu-
mane, its American.
During the latter stages and aftermath of World War II, through an plan widely
known as Operation Keelhaul, the United States allowed thousands upon thou-
sands of brave people who succeeded in reaching Western Europe after fleeing Sta-
lins emerging Soviet Bloc to be forcibly repatriated at the Communists insistence.
While I am most certainly not comparing the Mexico of today to the Russia of old,
the principle still applies: its wrong to close the door to opportunity on those who
have risked all to pass through it and send them back from whence they came.
Are we to take an Operation Keelhaul approach to these Mexican immigrants? Or
any other category of immigrants for that matter? Could our consciences permit us?
HEMISPHERIC FREE TRADE: GETTING FROM HERE TO THERE
Our Nation is about to embrace a path to prosperity that will reach from the Ca-
nadian Yukon to Cape Horn. By enacting a free trade zone throughout the Western
Hemisphere, we will dramatically improve the lives of all who live within it. Taking
a more sensible approach to freeing the movement of labor is a crucial component
of making hemispheric free trade possible.
Admittedly, labor mobility is not the sine qua non of hemispheric free trade: that
honor belongs exclusively to Trade Promotion Authority. Empowering President
Bush (and every president after him, for that matter) with Trade Promotion Author-
ity will ultimately make labor mobility throughout the hemisphere less of a concern
by eliminating the punitive taxes on imports that kill job creation in developing na-
tions and close access to markets to our south.
Nevertheless, without a few changes to our labor laws sooner rather than later,
Americans wont enjoy the widespread benefits of hemispheric free trade as quickly
as we would have otherwise. And theres nothing more expensive than the wasted
time that causes opportunities to be lost.
Although granting special status to Mexican immigrants may be touted by some
to be a slight against immigrants from Central and South America, its best to view
this as a necessary first step towards those with whom we share an immediate
physical border, much like our bilateral free trade pact with Canada was a nec-
essary precursor for NAFTA. If we dont make the modest effort needed to lay a
foundation now, future measures aimed at establishing a hemispheric free trade
zone will be all the more difficult.
And we will all suffer as a consequence, Americans and Mexicans alike.
EXHIBIT A: THE OATH OF CITIZENSHIP
I hereby declare, on oath, that I absolutely and entirely renounce and abjure all
allegiance and fidelity to any foreign prince, potentate, state, or sovereignty of
whom or which I have heretofore been a subject or citizen; that I will support and
defend the Constitution and laws of the United States of America against all en-
emies, foreign and domestic; that I will bear true faith and allegiance to the same;
that I will bear arms on behalf of the United States when required by law; that I
will perform noncombatant service in the Armed Forces of the United States when
required by the law; that I will perform work of national importance under civilian
direction when required by the law; and that I take this obligation freely without
any mental reservation or purpose of evasion; so help me God.
56
EXHIBIT B: THE NEW COLOSSUS BY EMMA LAZARUS
Not like the brazen giant of Greek fame,

with conquering limbs astride from land to land;
Here at our sea-washed, sunset gates shall stand
A mighty woman with a torch, whose flame
Is the imprisoned lightning, and her name
Mother of Exiles. From her beacon-hand
Glows world-wide welcome; here mild eyes command.
The air-bridged harbor that twin cities frame.
Keep, ancient lands, your storied pomp! cries she
With silent lips. Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tossed to me.
I lift my lamp beside the golden door.
EXHIBIT C: YAKOV SMIRNOFF, RUSSIAN-BORN COMEDIAN:
My first thought after I had sworn for American citizenship was I hate these
foreigners who come here and take our jobs!
Senator KENNEDY. [Presiding.] Thank you very much.
Mr. Deffenbaugh?
STATEMENT OF RALSTON H. DEFFENBAUGH, JR., PRESIDENT,

LUTHERAN IMMIGRATION AND REFUGEE SERVICE, BALTI-
MORE, MARYLAND
Mr. DEFFENBAUGH. Thank you very much, Senator Kennedy,
Senator Brownback, and all the members of the Committee. I want
to thank you for holding this hearing and for the opportunity to
testify. Particularly, I want to give a word of thanks for the adop-
tion of 245(i) last evening. That will help a lot of families and re-
move the separation and hardships which many have faced because
of the lapse in 245(i).
In the Gospel of Matthew, in the 25th chapter, it says that the
nations will be judged by how we treat the least of these, and this
is indeed an historic opportunity for us as we talk about migration
between the U.S. and Mexico. And I hope that as this body and as
our Nation makes the decisions about how we will deal with migra-
tion between our countries and, in fact, general migration in the
United States, that we will keep in mind that touchstone of how
does it affect the least of these and that we will focus on the
human rights and the human dignity of the migrants themselves.
It is clear that our current immigration policy with regard to eco-
nomic migration is unacceptable and has to change. The results of
this policy today have included hundreds of deaths annually along
the U.S.Mexican border and elsewhere, abuse of the undocu-
mented here in the United States, the separation of families, and
an inadequate match between the labor needs of our $10 trillion
economy and the poor and excluded who seek an opportunity in it.
As an alternative, we propose the substantial legalization of eco-
nomic migration. Honest people who want to work shouldnt be
made to violate the law. And, specifically, we call for an inde-
pendent worker visa that would not tie a worker to any particular
employer or economic sector, but would provide for equal protection
under the law and allow those with substantial equities in this
country to adjust their status here to that of permanent residency.
57
We have an opportunity nowand it is just amazing to see the

change in the political climate, of course, with the friendship be-
tween President Bush and President Fox and the changes in the
Mexican political scene. But we have an opportunity to shape a pol-
icy which would more appropriately reflect the relationship of two
friendly nations whose people and economies are increasingly inter-
dependent and not treat our immigration as though we need to put
up more and more walls and barriers to those who would come in
friendship to our country.
We also have an opportunity to remove a grave injustice in our
own country which causes great hardship to so many: the existence
of a permanent sub-group of people who live without recourse to ef-
fective legal protection in our country. And this opens the door to
their massive abuse and exploitation and harms the common good
in our country. We cant continue to have a large under-class of
people who do not have legal status in our country.
So I thank you for the opportunity to speak for the human rights
and human dignity of migrants and their families.
[The prepared statement of Mr. Deffenbaugh follows:]
STATEMENT OF RALSTON H. DEFFENBAUGH, JR., PRESIDENT, LUTHERAN IMMIGRATION
AND REFUGEE SERVICE, BALTIMORE, MARYLAND
INTRODUCTION AND SUMMARY

Lutheran Immigration and Refugee Service (LIRS) was founded in 1939 to help
resettle refugees fleeing Nazi Germany. Since then, LIRS has resettled more than
280,000 refugees from all over the world. It provides service and advocacy through
its 41 Lutheran affiliate offices and sub offices, its Washington, D.C. office and its
headquarters in Baltimore, Maryland. LIRS advocates for just, compassionate poli-
cies for all newcomers to the United States and administers a fund from Lutheran
and Presbyterian churches that provides grants to independent grass roots service
programs to serve particularly vulnerable newcomers. There is a strong tradition of
Lutheran pastoral care and ministry for migrant farm workers, both legal and un-
documented. LIRS has opposed employer sanctions since their inception and has
spoken out against workplace raids to the present day.
Our Nations immigration policy with regard to economic migration is unaccept-
able and must change. The results of this policy include hundreds of deaths annu-
ally along the U.S.-Mexican border and elsewhere, abuse of the undocumented here
in the U.S. and an inadequate match between the labor needs of our $10 trillion
economy and the poor and excluded who seek opportunity in it. As an alternative,
we propose the substantial legalization of economic migration. Specifically, we call
for independent worker visas that do not tie workers to any particular employer
or economic sector, provide for equal protection under the law and allow those with
substantial equities in this country to adjust their status to that of permanent resi-
dence.
THE DEADLY BORDER IS AT THE CENTER OF A HISTORY OF POLICY FAILURE

INS border enforcement strategy has, in effect, diverted migration flows to the
most inhospitable desert and mountain regions causing dramatic increases in deaths
due to exposure to the elements.1 According to the GAO, although INS has realized
its goal of shifting illegal alien traffic away from urban areas, [the primary
discernable effect of the strategy,] this has been achieved at a cost to both illegal
aliens and INS. 2 The number of bodies found by the INS on the U.S. side of the
border soared to 367 last year and that almost certainly undercounts the total num-
ber of deaths. As of August 21 the death toll in Californias Imperial Valley topped
last years figure in that region with six weeks left to go, despite a decline in appre-
1 Karl Eschbach, Jaqueline Hagan and Nestor Rodriguez, Causes and Trends in Migrant
Deaths along the U.S.-Mexico Border, University of Houston, Center for Immigration Research,
March 2001.
2 General Accounting Office, INS Southwest Border Strategy: Resource and Impact Issues
Remain After Seven Years, August 2000, pp. 23.
58
hensions.3 Enforcement strategy has also resulted in an increase in the use of smug-
glers (and in their fees) and in the incidence of violence in the border areas. It has
spawned rancor between property owners and migrants, including vigilante-style in-
timidation. Those who survive the crossing end up living underground, without legal
status, sometimes in debt-peonage to criminal smuggling syndicates. They are also
prey to unscrupulous employers who would use threats of deportation in order to
squelch their rights.
Mexican migration to and from the United States has been an essentially cyclical
phenomenon for more than 150 years. Modern efforts to suppress this pattern origi-
nate from the termiNation of the 194264 Bracero program.4 At the time, opponents
assumed that ending the program would tighten the U.S. agricultural labor market,
resulting in increased wages and improved working conditions. Farmers, on the
other hand, believed that ending the program would result in crop loss, business
failure and higher prices. Both sides were wrong. The actual result was the steady
rise in undocumented economic migration.5 Between, 1965 and 1990, besides the 1.9
million Mexicans admitted as legal permanent residents, there were an estimated
36 million unauthorized entries from Mexico to the United States and 31 million
returns the other way.6
In 1986, the Immigration Reform and Control Act (IRCA) attempted to freeze the
cyclical migration pattern, attempting to apply a static solution to a dynamic phe-
nomenon. Amnesty was granted to those already here and employer sanctions were
imposed to deter those who might seek to come in the future. Employer sanctions
hurt migrants in that they cause increased use of subcontractors to absorb risk of
liability and simple discrimiNation against those who merely appear foreign. In ef-
fect, our immigration policies extract a risk premium from migrants wages that
has been estimated to amount to an estimated 28% cut.7
Many present day economic migrants also seek U.S. employment only on a tem-
porary basis and would prefer to return to their families in their own countries peri-
odically but they dare not do so due to the high risks associated with repeated
entry. In other words, our very immigration policy, in attempting to thwart the cir-
cular pattern, perversely compels undocumented migrants to remain in the United
States, apart from their families and unemployed in off seasons. Tragically, increas-
ing numbers of women and children are dying at the border as migrants respond
by attempting to bring their entire families over in order to avoid indefinite separa-
tion.
And yet, for all the lethality and hardship caused by our present enforcement
strategy, it has shown little effect in reducing illegal immigration 8 and less in shor-
ing up wages of unskilled Americans.9 In the U.S. economy, the low-skilled immi-
gration is absorbed by changes in the production output mix through shifts to less
skill-intensive sectors and technological change in other sectors based on skill in-
creases among natives, moving them out of the low-skill labor market.10 The down-
ward pressure on low-skill wages that does exist is virtually exclusive to American
high school dropouts and influenced by technological innovation more than immigra-
3 Ben Fox, Deaths near border rise at record pace. Imperial Valley; Six more weeks of ex-
pected heat could increase the toll, authorities say, The Press Enterprise (Riverside, Ca.), Au-
gust 21, 2001.
4 Pia M. Orrenius, Illegal Immigration and Enforcement Along the U.S.-Mexico Border: An
Overview, Economic and Financial Review, First Quarter 2001, Federal Reserve Bank of Dal-
las, p. 4; Gordon H. Hanson, Kenneth F. Scheve, Matthew J. Slaughter and Antonio
Spilimbergo, Immigration and the U.S. Economy: Labor Market Impacts, Illegal Entry, and Pol-
icy Choices, June 2001, pp. 1011, 34.
5 Demetrios G. Papademetriou and Monica L. Heppel, Balancing Acts: Toward a Fair Bargain
on Seasonal Agricultural Workers, Carnegie Endowment for International Peace, 1999, fn. 18,
p. 18 and fn. 16, p. 17.
6 Douglas S. Massey and A. Singer, New Estimates of Undocumented Mexican Migration and
the Probability of Apprehension, Demography, 1995, Vol. 32, pp. 203213.
7 Douglas S. Massey, March of Folly: U.S. Immigration Policy After NAFTA, The American
Prospect, no. 37, March-April, 1998. Massey also found that, prior to the advent of employer
sanctions under the 1986 IRCA law, the key determinants of migrant wage levels were edu-
cation, experience in the U.S. and English proficiency. After IRCA, the key determinants were
social contacts.
8 Gordon H. Hanson and Antonio Spilimbergo, Does Border Enforcement Protect U.S. Work-
ers from Illegal Immigration?, NBER Working Paper No. W7054, March 1999.
9 Gordon H. Hanson, Kenneth F. Scheve, Matthew J. Slaughter and Antonio Spilimbergo, Im-
migration and the U. S. Economy: Labor Market Impacts, Illegal Entry, and Policy Choices,
June 2001, pp. 1011.
10 Gordon H. Hanson, Kenneth F. Scheve, Matthew J. Slaughter and Antonio Spilimbergo,
Immigration and the U.S. Economy: Labor Market Impacts, Illegal Entry, and Policy Choices,
June 2001, pp. 14, 1718, 21. In more rigid markets such as Europe, by contrast, such influxes
are absorbed more by increases in unemployment. Id. at 15.
59
tion.11 While this is cause for concern, such concern would be more effectively di-
rected toward substantial education reform and target other headwinds facing the
least among us. Scapegoating immigrants, on the other hand, neither teaches func-
tional illiterates to read, nor frees addicts from substance abuse, nor reforms crimi-
nal sentencing anomalies, nor addresses any significant obstacle to the upward mo-
bility American underclass.12
INDEPENDENT WORKER VISAS
While we favor the option of permanent residence for those who have established
substantial equities in this country, we recognize that temporary visas can alleviate
much of the hardship occasioned by present policies. Many economic migrants have
no need or desire to immigrate to this country and only seek work here on an occa-
sional or seasonal basis.13 This is an interest that can and should be accommodated.
The key shortcoming in typical guest worker programs such as the Bracero and
H2A programs is that they are employer-centered. The employer is the sponsor/peti-
tioner and the worker is more or less bound to that employer. This is an anti-com-
petitive restriction of workers bargaining power and inhibits their assertion of legal
rights with fear of immigration consequences. This also amounts to an inappropriate
privatization of our immigration policy. Making the legality of a persons status in
this country dependent upon her relationship with a particular employer virtually
invites abuse.
Economic migrants, documented and undocumented, are presently working in vir-
tually every sector of our economy, from manufacturing to services, from construc-
tion to domestic work. Industry-wide rather than employer-specific restrictions, such
as a requirement to work in agriculture, would not only still constrain workers bar-
gaining power but would also be an unrealistic response to the defects of current
policy. Only 10% of Mexicans and Mexican-Americans in the United States work in
agriculture, while 85% work in the service sector and many are now entering the
commercial sector.14 A policy that ignores economic reality is bound to fail and per-
petuate the same ills of the status quo. Sectoral restrictions would also hinder eco-
nomic development in Mexico as they would limit the value of the human capital
infusions that take place when migrants return.
Independent Worker Visas, on the other hand, would be migrant-centered visas
for which the workers themselves apply, with no restrictions as to which employer
or in which industry the bearer can work. Labor standards should apply equally to
all workers with no discrimiNation on the basis of nationality or immigration status.
Furthermore, those who develop substantial equities in this country should be al-
lowed to adjust their status to that of permanent residence. These principles of mo-
bility across employers and sectors and equal treatment under the law have been
articulated by dozens of humanitarian and faith-based organizations 15 and we are
gratified to see them endorsed by the Democratic leadership of the U.S. Congress
as well.16 A recent study from UCLA has also recommended a renewable New
Worker Visa initially for citizens of Mexico, Canada, the Caribbean and Central
America, based on historical levels of undocumented entry that would ensure full
portability across jobs, allow multiple re-entry to restore circularity, provide a path
to earned residency after five years and include participation in payroll tax-funded
benefits, though not means-tested public assistance.17
Also, we recognize no fundamental moral distinction between Mexicans dying on
our southern border, Haitians drowning in the Windward Passage and Chinese suf-
focating in cargo containers. While there may be sound political reasons for begin-
ning the reform of our economic migration policies in a bilateral arrangement with
11 Id.
at p. 23.
12 Although LIRS does not develop positions on policies addressing such domestic issues, Lu-
theran church bodies associated with it do. See e.g., the Evangelical Lutheran Church in Amer-
ica, http)://www.elca.org/des/advocagy.hbul and the Lutheran ChurchMissouri Synod, http://
humancare.lcms.org
13 Belinda Reyes, Dynamics of Immigration: Return Migration to Western Mexico, Public
Policy Institute of California, 1997.
14 Council on Hemispheric Affairs, Startling Statistics about Mexican Immigration, August
16, 2001.
15 Religious Leaders Call for Change in Policies that Result in Border Deaths, a June 4,
2001, http://www.firs.org/DonateServe/advocate/EconMig ReligLdrs.pdf; End the War on Eco-
nomic Migrants! February 14, 2001, http://www.lirs.org/DonateServe/advocate.htm.
16 Sen. Thomas A. Daschle and Rep. Richard A. Gephardt, Letter to Presidents George W.
Bush and Vicente Fox, August 2, 2001, p. 3.
17 Dr. Raul Hinojosa Ojeda et al., Comprehensive Migration Policy Reform in North America:
The Key to Sustainable and Equitable Economic Integration, North American Integration and
Development Center, August 29, 2001, pp. 28, 32.
60
Mexico, we share the view of the Administration and the Democratic Congressional
Leadership that we should do so with a view to expanding it to equally deserving
people of other nationalities.18
MIGRATION AND DEVELOPMENT
Migration to the United States has been one of the most effective anti-poverty
programs in the history of the world. This is not without repercussions in the coun-
tries from which immigrants come. Unlike refugees, economic migrants frequently
return to their countries of origin and bring much needed capitalboth human and
financialand, while they are here, provide an important source of income diver-
sification and economic risk insurance for their families abroad.19
The level of migrant remittances is staggering. The estimated $7 billion Mexican
workers send to their families each year is more than 300 times our governments
level of Official Development Assistance to that country; Salvadoran remittances are
nearly 7 times all Foreign Direct Investment there; in Haiti, remittances constitute
17% of the GDP.20 The cost of rich country restrictions on the economic migration
of the poor, on the other hand, is equally staggering. In 1992, the United Nations
Development Programme estimated that rich country immigration controls against
poor country labor cost the developing world $250 billion or 10% of their combined
GNPs.21
Aside from the financial capital transfer, economic migrants also return to their
home countries with broader political experience with alternative standards of gov-
ernance and higher expectations. These can provide significant constructive impetus
for much needed reform, democratization and development in poorer countries.
While we do not oppose the admission of high-skilled workers, we emphasize free-
dom of movement for the poorest of migrants for a number of reasons. The humani-
tarian needs of the poor are especially compelling and, without legal alternatives,
they are consequently more likely to take death-defying risks. Finally, the American
economy is increasing in its capital and highskill intensiveness. In 1940, 77% of our
labor force was without a high school diploma; in 1990, fully half had attended col-
lege.22 This results in a growing disparity between our economys proportionate low-
skill labor factor endowment with respect to that of the rest of the world, particu-
larly the developing world. In other words, the economic pressure for the equalizing
immigration of low-skill workers is caused not only by the push from the devel-
oping world but also by the pull of our own economy.
BASES IN LUTHERAN IMMIGRATION STUDIES AND POLICY STATEMENTS
With specific reference to Mexico and its border with the U.S., the Lutheran Mes-
sage on Immigration (ELCA, 1998),23 states that
We recognize the right of all countries to control their borders and their
duty to protect their citizens from the illegal entry of drugs and criminals.
But we have serious doubts about the rightness and effectiveness of current
policy to erect imposing barriers between the United States and Mexico. We
support the search for alternatives to this policy that would more appro-
priately reflect the relationship of two friendly nations whose peoples and
economies are increasingly interdependent. [p. 9]
18 President George W. Bush, Remarks by the President and Virginia Gubernatorial Can-
didate Mark Early in Photo Opportunity, The White House, Office of the Press Secretary, July
26, 2001; Sen. Thomas A. Daschle and Rep. Richard A. Gephardt, Letter to Presidents George
W. Bush and Vicente Fox, August 2, 2001, pp. 12.
19 Douglas S. Massey, March of Folly: U.S. Immigration Policy After NAFTA, The American
Prospect, no. 37, March-April, 1998. Massey summarizes empirical studies indicating that Mexi-
can migration into the U.S. (and back to Mexico) is more closely correlated with variances in
interest and inflation rates between the two countries than it is to wage levels or public benefits.
Questioning the assumption that migrants make decisions to enter or return based on simple
entry-cost/income-benefit analyses, Massey also rebuts the corollary notion that increasing bar-
riers at the border will significantly prevent economic migration.
20 Inter-American Development Bank Multilateral Investment Fund, Remittances to Latin
America and the Caribbean: Comparative Statistics, May 2001, www.iadb.or.p/mif/eng/con-
ferences/remit-en.htm.
21 United Nations Development Programme, Human Development Report 1992, pp. 6667.
22 Gordon H. Hanson, Kenneth F. Scheve, Matthew J. Slaughter and Antonio Spilimbergo,
Immigration and the U.S. Economy: Labor Market Impacts, Illegal Entry, and Policy Choices,
June 2001, p. 23 Table 3.3.
23 The Message is grounded in the pan-Lutheran documents A Statement on Immigration
Policies: Moral Issues and National Interest (Lutheran Council in the USA, 1969, Minutes Ex-
hibit F) and Immigration Policies: Moral Issues and National Interest (National Lutheran
Council Annual Meeting, February 25, 1960, Minutes Exhibit B).
61
Far from a call for open borders, the Message nonetheless boldly suggests a
highly constrained view of the substantive scope of the appropriate use of force in
keeping people apart: e.g., the interdiction of drugs and criminals, not the separa-
tion of friendly, economically interdependent peoples.
Under Advocating for F?;ir and Generous Laws, the Message lists among objec-
tives giv[ing] content to our understanding of fair and generous immigration laws:
1. To admit to our permanent population a steady proportion of new-
comers:. . .
b. by facilitating the entry of persons possessing special skills or other ca-
pacities needed by the American economy and culture; [pp. 67].
Finally, the Message recognizes that The existence of a permanent sub-group of
people who live without recourse to effective legal protection opens the door for their
massive abuse and exploitation and harms the common good and goes on to urge
leaders and citizens to seek feasible responses to this situation that offer flexible
and humane ways for undocumented persons who have been in this country for a
specified amount of time to be able to adjust their legal status (p. 8).
In Who is My Neighbor: A Statement of Concern (LIRS, 1994), we acknowledge
that persons may feel their jobs threatened by newcomers into their communities
(II.3) but also recognize that To place one person or one need over another builds
once more the walls which Christ came to remove (II.1). We affirm that those
fleeing desperate situations in which grinding poverty threatens the life and health
of their families, no less than those fleeing persecution, are our brothers and sis-
ters. We must weigh the needs of the very poor who leave their homes to seek
a better life in this country and the needs of this Nation to provide for the welfare
of its citizens . . . . We can help to fashion a national immigration and refugee pol-
icy that justly and compassionately weighs the rights and the legitimate needs of
both those who reside within our borders and those who seek to enter (1I.4).
Our Study Document of Principles on the Issue of Undocumented Aliens (LIRS,
1979), among Recommended Current Criteria and Principles, states that
it is imperative that . . . people in underdeveloped countries are dealt with
justly and are able to pursue an adequate and satisfying way of life. Yet
until such development is achieved, there must be a broadening of defini-
tion and understanding of those eligible for proper admission into the USA.
Stewardship compels acceptance of as many as possible of those who have
endured economic suffering. Acceptance should not be limited to the victims
ofpolitical persecution. Whatever this richly endowed Nation can do it must
do.
5. The advances that have been made in the field of civil rights demand
that no restrictions be placed on the employment of the undocumented Em-
ployer sanctions for hiring the undocumented could be an invitation under
color of law for an employer to reject the applicant who is not an English-
speaking Caucasian. Furthermore such sanctions would place the employer
in an enforcement role which is inimical to good order.
A viable option [preferable to national identification] might be . . . enforcement
of the labor practice laws already enacted, since one of the charges against the un-
documented is that they lower present labor standards. This neither helps the U.S.
worker nor the undocumented. [p. 4, emphasis added].
Freed in Christ: Race, Ethnicity, and Culture (ELCA 1993) states prophetically
that we look forward to the time when people will come from east and west, north
and south to eat in the reign of God (Luke 13:29) p. 2. In that light, it sets forth
a bold advocacy agenda for equality that can inform the way we look at immigra-
tion:
This church will support legislation, ordinances, and resolutions that guar-
antee to all persons equally: civil rights, including full protection of the law
and redress under the law of discriminatory practices; . . . opportunity for
employment with fair compensation, and possibilities for job training and
education, apprenticeship, promotion, and union membership; . . . We of
the Evangelical Lutheran Church in America will advocate for just immi-
gration policies, including fairness in visa regulations . . . [p. 7, emphasis
added]
CONCLUSION
I thank Chairman Leahy, Senator Kennedy and the Senate Judiciary Committee
for the opportunity to present this written testimony. I trust that you will bear it
in mind in your quest for a just and equitable solution to the problems our present
immigration system poses for economic migrants. We share President Foxs hope
62
that an agreement can be reached before the end of the year, even as nearly a hun-
dred more may die between now and then. We share Congressman Sensenbrenners
hope that INS can be substantially restructured but do not feel that reform of our
economic migration policy can wait until then. Independent worker visas could be
implemented largely through the Consular Affairs office of the State Department
without adding any substantial burdens to the INS.
Mr. Moore?
STATEMENT OF STEPHEN MOORE, SENIOR FELLOW, CATO
INSTITUTE, WASHINGTON, D.C.
Mr. MOORE. Thank you, Senator Brownback and Senator Ken-
nedy, for the privilege of testifies on this very important issue.
Let me start by telling you how much I appreciate what you have
done over the last 30 years on this issue, Senator Kennedy. I am
sure that there are many issues that you and I would disagree on,
but I think on this one I really applaud your leadership on this
issue. It has meant a lot to the American economy and to millions
of people around the world who come here and become Americans.
I would like to, if I could, just highlight three quick points be-
cause I know it is getting late in the afternoon.
First, immigration is not out of control. We hear it said that we
are under siege by immigration and that we are accepting record
levels of immigrants that we cannot absorb. And if you look at my
testimony, if you look at some of the graphics I have put together,
what you find is that in absolute numbers, sure, we are pretty near
a peak point, about 1 million entrants per year; but this is about
equivalent to the number of immigrants who came in during the
great Ellis Island wave of immigration at the beginning of the cen-
tury. But, of course, we are much more populous country today
than we were 100 years ago. And if you look at immigration rel-
ative to our population, we are actually at a fairly low level of im-
migration, at least historically. About four new immigrants come
into the country for every thousand Americans that are already
here. I think that is a number that we are well able to absorb, and
we have been absorbing them well.
A related issue with respect to this particular hearing is what
about Mexican immigration. Has that been increasing or decreas-
ing? And in preparation for this testimony, I looked at the histor-
ical data on where we are with Mexican immigration. What I
found, Senators, is that over the last two decades we have seen an
increase in immigration from Mexico, but not a startlingly large in-
crease in Mexican immigration. And, in fact, I compared, Senator
Kennedy, the percentage of immigrants coming from North Amer-
ica pre- the Kennedy Act of 1965 versus post1965 Act, and what
I found is there is almost no real shift in terms of the number of
immigrants who are coming from our neighbor to the North and to
the South. The actual big shift, as you know, has been away from
Europe and towards Asia.
So my point is just that, you know, we are not being over-
whelmed right now with Mexican immigration, and I think that the
proposal that is put on the table of a legalization program and
guest workers would be very consistent with our historical policy.
The second point I would like to make to youand I think this
is something that there is just an increasing economic consensus on
63
the issue that immigrants are good for our economy. You know,
this is something, if we had been debating it 20 years ago, a lot
of the people who were in the anti-immigration camp, if we had
told them we are going to let 15 million new Americans into the
country over the next 20 years, they would have predicted in-
creased unemployment rates and all sorts of economic damage done
to American workers. And if you look at the evidence over the last
20 years, when we have had a fairly generous immigration policy,
my gosh, today even with the increase in the unemployment num-
ber that was reported today, we still have the lowest unemploy-
ment rate in the industrialized world, even though we take more
immigrants into the United States than all of our industrialized
competitors combined.
So I think as my former mentor used to say, Julian Simon, immi-
grants dont just take jobs, they create jobs through the businesses
they create and through the demand that they create when they
buy goods and services here in the United States.
The last 20 years has been a great period of prosperity, and it
has been a period of a fairly high level of immigration. My only
point is that I think this period really proves that prosperity and
immigration can co-exist.
By the way, one area in particular where I think immigrants
have just made an incredible contribution has been in the kind of
information age, high-tech area. Again, in preparing this testi-
mony, I was looking at some of the evidence from what has hap-
pened in the high-tech area, and it is estimated, for example, that
in Silicon Valley, one out of every four businesses started over the
last 20 years in Silicon Valley in the high-tech area was either
founded by an Indian or a Chinese immigrant, which is really in-
credible. But they constitute almost 25 percent of the new busi-
nesses, which, by the way, gets to the point that immigrants dont
just take jobs, they create jobs.
The final point I would like to make to you which is of most rel-
evance to the legislation that you will be looking at later this year
and next year is with respect to the temporary guest worker pro-
gram. And I just wanted to make this point because I feel very
strongly about this. Over the last 50 years, we have tried all sorts
of measures to reduce illegal immigration, and I just want to go on
record right now that I am very pro-legal immigration, but I am
also very anti-illegal immigration. I think we do need to take steps
to try to reduce the number of people who come into the country
illegally. We have tried all sorts of types of measures to do that,
including, for example, back 10 or 15 years ago when we imple-
mented the employer sanctions law, which I think was a grand fail-
ure. I would agree with Grover Norquist that we ought to repeal
that law.
But there is one program, interestingly enough, that as actually
worked fairly well in reducing the number of illegal immigrants
who come to the country, and I would, if I may, Senator
Brownback, refer youif you have a copy of my testimonyto Fig-
ure 6 which looks at the last 50 years with respect to undocu-
mented apprehensions at the border. And then I compared that
with the number of temporary workers that were permitted to
come into the country in the 1950s and 1960s. And the point of this
64
graph, Senator, is that you see very high levels of undocumented

immigration in the late 1940s and early 1950s, and then in about
the mid1950s, we implemented a legal guest worker program. And
what happened is that the number of illegal immigrants just plum-
meted. In other words, when we allowed Mexican immigrants a
legal way to come here, the number of illegal immigrants dramati-
cally declined. And, in fact, you see that happening for about the
15 or so years that that legal temporary guest worker program was
in existence. Then when we eliminated that program, that is when
illegal immigration started to go way back up again.
So I think the historical record shows that if we do have a kind
of humane guest worker programand the guest worker program
that we had in the late 1950s and 1960s had a lot of problems asso-
ciated with it. But it does show that if you allow these workers a
legal way to come, we can reduce illegal immigration. And I do be-
lieve that these workers whoafter all, the immigrants who are
coming here are the ones who are literally putting the food on our
table, and our agriculture work has been done for 100 years by
these migrant workers. We ought to really give them the decency
and dignity of a legal program. And so I would really applaud any
effort in that direction.
Thank you.
[The prepared statement of Mr. Moore follows:]
STATEMENT OF STEPHEN MOORE, SENIOR FELLOW IN ECONOMICS, CATO INSTITUTE,
WASHINGTON, D.C.
Thank you Senator Kennedy and Senator Brownback for the privilege of
beingasked to testify before your Committee on the impact of U.S. Mexico migration
issues.
In this testimony I wish to make three points to the Committee. First, I wish to
refute the widely held myth that immigration from Mexico is out-of-control or out
of line with historical levels of immigrants admitted from our Southern neighbor.
The percentage of immigrants coming from Mexico and other Central American na-
tions is very much in line with rates of immigration for much of this region of the
world for the past 100 years.
Second, the economic impact of immigration over the past two decades has been
highly positive. An economic consensus has begun to emerge that U.S. workers and
industry benefit from a generous immigration policy. In fact, many of our competi-
tors from other industrial nations have begun to grudgingly concede that U.S. immi-
gration policy has allowed the U.S. to attract many of the top minds and talents
from around the world. Mexican President Vicente Fox was exactly right when he
asked President Bush in their recent meeting: How can it possibly be that Mexican
immigration has hurt the U.S., when your economy has performed so well over the
past two decades? The answer is that on balance Mexican immigration has been a
benefit not a burden to our economy. Even though Mexican immigrants tend to be
less skilled and less educated than American workers and immigrants from other
regions of the world, these migrant workers fill niches in our workforce that help
our economy perform at a high level of efficiency.
Finally, I wish to comment on the legislative proposal to allow temporary guest
workers into the U.S. I believe this policy would be highly desirable both in terms
of reducing the flow of illegal immigration and in helping our vital agricultural and
service industries attract the workers they need to remain competitive.
Point #1. Immigration Levels Are Not Out of Control, Nor Is Immigration from
Mexico Especially High
A popular myth about current U.S. immigration policy is that the number of im-
migrants admitted has reached unprecedented heights. Here are the basic historical
facts. In the 20th century America experienced two great waves of immigration to
these shores: the first occurred in the early 1900s when huge throngs of European
exiles the tempest tossed from Germany, Ireland, Italy, Poland, Sweden, Russia,
and elsewhere arrived by ship and entered through Ellis Island. The second great
wave began roughly 25 years ago and continues to this day.
65
Our current immigration levels range from the moderately high to the historically
normal range depending on what measurement we use. Certainly in absolute num-
bers the U.S. has increased quotas substantially. We now add about 1 million new
foreigners every year to the stock of Americans, which is about equal to the histor-
ical peak levels of the early 1900s. See Figure 1.
On the other hand, Pat Buchanan and Forbes writer Peter Brimelow, author of
Alien Nation, are dead wrong in lambasting this flow as a kind of out of control
alien invasion. The most meaningful way to measure our capacity to absorb immi-
grants into our culture and our economy is to calculate the number of people admit-
ted relative to the size of the population already here. We now admit almost 4 new
immigrants per year for every 1,000 Americans, which is a higher rate than in the
past 50 years, but still only about half the historical average. See Figure 2. About
10% of Americans today are foreign born, which is just below our historical average,
but is up a lot from 6% in the early 1970s. See Figure 3.
An issue of direct relevance to the recent negotiations between George W. Bush
and Vicente Fox is whether immigration from Mexico has reached levels that are
abnormally high. That is to say: How has the ethnic composition of the new immi-
grants, changed over time? The 2000 Reform Party presidential candidate, Patrick
Buchanan, has insisted that immigration is causing America to lose its white Euro-
pean culture and there are many Americans who agree with him. A prediction by
Census Bureau demographers that whites may soon by a minority in Texas and
California has received front page billing in many newspapers. The Census Bureau
also predicts that Hispanics who now constitute 8% of the U.S. workforce, will con-
stitute more than 20% by 2050. This is not just a cultural issue. Some economists
maintain that the Europeans of earlier periods brought to the U.S. had much higher
skill levels than the Asian and Hispanics do today.
It turns out that although Latino immigration has been on the rise in the past
two decades, the current percentage of immigrants from Spanish-speaking nations
like Mexico is only slightly higher than historical levels. See Figure 4. It is very true
that since the enactment of the 1965 Immigration Act, the ethnic composition of im-
migration has changed markedlybut not in ways that most people suspect.
It is commonly believed that the big shift in the ethnic composition of immigrants
in the 1970s, 80s, and 90s was toward allowing entry of more Hispanics from Cen-
tral America and fewer Europeans. That is wrong. In fact, since the 1920s immigra-
tion from the rest of North America has remained steady at between 35 and 50 per-
cent of the total. Hispanics have been coming to the U.S. in large numbers for 70
years. A 1988 U.S. General Accounting Office report concluded that the number of
immigrants from Mexico has been quite stable in this century. Over the past 10
years, there has been a rise in Mexican immigration flows, mostly because of legal-
ization that occurred in the early 1990s.
What is different today than in 1965 is that European immigration has been sup-
planted by Asian immigration. Figure 5 shows that whereas in 1965 almost half of
all immigrants came from Europe and 10 percent from Asia, by 1990 those percent-
ages had essentially reversed (Moore, 1989, Heritage). I am not at all suggesting
that there is a major problem with Asian immigration. To the contrary, Asian immi-
grants have from Cambodia, China, India, Japan, Pakistan, Taiwan, and Vietnam,
for examplebeen some of the most economically successful groups to ever come to
these shores.
I am only suggesting to this Committee that if we were to allow more migrant
workers to come from Mexico, this would not be a major shift from our historical
immigration policies.
Mexican migrants have been coming to the U.S. for almost a century to work in
agriculture and service industries. The flow will almost certainly continue regard-
less of actions taken by Congress. The only real issue is whether we will continue
to treat these workers as second class citizens, or whether we will start to confer
upon the the full protections of our laws and legal system. I believe that we ought
to treat the Mexican migrant workers with the dignity and decency that they de-
serve and have earned over many decades of contributing to our country and our
prosperity.
Point 2. The New Immigrants have been economically beneficial to the U.S. and
will continue to play a critical role in coming decades.
Here is a little thought experiment. Imagine for a moment that we were trans-
planted back in time twenty years ago and that this were 1981, not 2001. And imag-
ine further, that you all on this Committee, were told at the start of the 1980s that
over the next two decades the United States would admit more immigrants some
15 million newcomers than during any other 20 year period in American history.
Given these conditions, if immigrants harm the U.S. economy or hurt American
workers, we should certainly see some evidence of it by now.
66
But happily, the evidence is nowhere to be found. There has been no increased
unemployment, no increase in the black-white wage differential, no decline in family
incomes, and no rise in poverty. In fact, virtually every one of these economic statis-
tics has run in exactly the opposite direction of what immigration skeptics like Pro-
fessor George Borjas of Harvard, would have predicted. The U.S. had high levels of
immigration in the 1980s and 1990s and we enjoyed great economic prosperity and
wealth creation. Virtually all income groups recorded gains.
Lets briefly examine each charge made by the restrictionists and see whether the
facts fit the fears:
Increased unemployment Traditionally the overriding concern of Americans has
been that foreigners will wrestle away jobs from U.S. born workers. Clearly that
didn t happen in the 1980s or 90s. The U.S. unemployment rate is now between
4 and 5%. The U.S. economy has shown a remarkable ability to absorb new workers
into the economy both natives and immigrants without causing job shortages. Be-
tween 1980 and 2000 the U.S. became a job creation machine, with some 35 million
more Americans employed today than 20 years ago. Even more impressive is that
even though the U.S. takes in nearly as many immigrants in a year as does all of
Japan and Europe combined, it is the U.S. that now has the lowest unemployment
rate in the industrialized world.
Rising poverty rates Do immigrants push Americans in the lower income into
categories into poverty? Poverty rates are indeed high (26%) for first generation im-
migrant families, but what is noteworthy is that poverty rates for families of U.S.
born parents, have fallen from about 15% in the early 1980s to a little over 10%
in 2000. Americans have clearly not been pushed into poverty because of competi-
tion from the large scale immigration of the 1980s and 1990s.
Lower wages for American-born workers George Borjas has gained notoriety for
the claim in his 1999 book Heavens Door: Immgration Policy and the U.S. Economy,
that immigrants contribute to the widening income gap between the rich and poor
in America. But the story is not nearly as dire as Borjas would have us believe. Me-
dian family income in the U.S. rose over the period 19811998 from $39,000 to
$45,800 or by roughly 16 percent after inflation, according to recent Census Bureau
data. Even more devastating to the hypothesis that the poor are losing ground be-
cause of immigration, is that family incomes even rose for Americans in the bottom
20% over this period. And in fact, if immigrants themselves are excluded from the
picture, so we are only assessing the impact of migrants on U.S. born workers, in-
comes at the bottom of the income scale have risen substantially since 1980. Wage
suppression does not appear to have occurred in this period of high immigration.
Adverse competition with black workers Borjas and others have charged that
the primary victims of U.S. immigration policy are black Americans who often must
compete with foreigners for the same pool of low-skilled jobs. But over the past 20
years of high levels of immigration, the income gap between blacks and whites has
actually shrunk. Blacks earned 60 cents for every dollar earned by whites in 1980
compared to 69 cents today. For women that racial disparity has narrowed from 89
cents in 1980 to 94 cents for every dollar earned by a white. Meanwhile, in 1999
the black and Hispanic unemployment rates fell to their lowest levels since the data
was disaggregated by race in the early 1970s. In sum, the 1980s and 90s were about
the two best decades ever for the economic advancement of black Americans. There
is zero evidence that immigrants stood in the way of this march toward economic
equality.
Lower economic growth What about the biggest issue of all: do immigrants re-
duce the rate of growth of the U.S. economy? The Federal Reserve Board calculates
that over the past 20 years the U.S. economy has experienced a $10 to $12 trillion
increase in net wealth (even accounting for the continuing stock market skid). The
GDP has grown by nearly 80 percent (after inflation), and the inflation rate has fall-
en to nearly zero. In fact, Alan Greenspan has noted on several occasions in congres-
sional testimony, immigrant workers have played a very useful role in smothering
inflation in the U.S. economy.
Certainly the fact that we had high scale immigration And prosperity simulta-
neously in the 1980s and 90s in no Way proves that immigrants caused the good
times. But what The last 20 years do demonstrate is that a welcoming immigration
policy can coexist with rapid economic growth, falling unemployment, and improved
living standards for workers black and white.
Now, there are two possible explanations here for why the experience of the 80s
and 90s has failed to confirm the anti-immigration movements case. The first is the
one that the restrictionists would like us to buy: that we had this spectacular burst
of economic progress, job creation, and new wealth, in spite of immigration. Who
knows, the U.S. economy might have sprinted forward even more briskly if we
hadnt had the burden of all the newcomers from around the globe.
67
The alternative explaNation seems entirely more plausible: that the immigration
restrictionists have simply gotten the economic story of immigration all wrong.
The truth is that the immigration skeptics have always held a contrarian view
within the economics profession on this issue. A number of years ago I conducted
a poll of the past presidents of the American Economic Association and past Amer-
ican Nobel prize winners in economics and found to my surprise almost unanimous
support for the proposition that immigration has been a very important factor in
explaining rapid growth in incomes and output in the U.S. over the 20th century.
Economists still argue over the size of the benefit to native-born Americans of immi-
grants with, for example the National Academy of Sciences recently speculating that
the overall economic effect is a modest $10 billion a year contribution but very few
argue that the impact is negative and that we are on balance worse off economically
because of the presence of immigrants.
I have always maintained that immigrants add value to a modern economy in two
ways. The first benefit derives from their age profile. Most immigrants come to the
U.S. between the ages of 18-35. That is, they come at the start of their working
years. This has two benefits: first, the human capital costs of education and child
rearing are borne by the taxpayers of the sending country, not by U.S. taxpayers.
Immigration really should be thought of as a reverse-form of foreign aid. I have cal-
culated that the human capital foreign aid we import has a value to Americans of
about $50 to $100 billion a year or roughly 3 times what we give to other nations
in cash foreign aid payments. Second, because immigrants come to the U.S. when
they are young with no corresponding parents who are eligible for Social Security
and Medicare, they constitute a massive one-generation net benefit to the finances
of both these programs. If we were to curtail all immigration for the next 25 years
it would blow about a $1.5 trillion larger hole in the Social Security deficit. It is
true that the immigrants will collect Social Security when they retire; but by that
time they will have children paying into the system to cover their parents retire-
ment costs.
Second, skilled-immigrants of late have had a profoundly positive impact on the
high-tech and information age economy. A 1999 study by the Public Policy Institute
of California found that almost one of every four technology firms in the state were
founded by either a Chinese or Indian immigrant. The study also found that roughly
one of every three scientist and engineer in Silicon Valley was an immigrant. Just
one immigrant alone, Hungarian refugee Andy Grove, co-founder of Intel is probably
personally responsible for the high-paying jobs of 10,000 Americans. So much for the
job displacement argument.
Certainly, the United States from an economic standpoint would be best off if we
moved more toward a skill-based immigration selection criteria and de-emphasized
family connections as the main gateway to entry. And in permitting more Mexican
immigrants to come to the U.S. on a permanent basis, we should be attentive to
how this might change the average skill levels of immigrants. Mexicans, for exam-
ple, tend to have several years of fewer schooling than do Europeans and many
Asian migrants, and thus their earnings potential in the U.S. is far more limited.
Point 3. Guest Worker Programs Can Help Reduce Illegal Immigration
I would maintain that one of Americas most crucial foreign policy and national
security goals should be to help keep the Mexican economy on a path toward rising
incomes and prosperity. If Mexico could sustain a rate of economic growth of 5% per
year, which it is capable of with the right set of market-based economic and tax pol-
icy changes, within one generation the average income Mexican worker can rise to
near the level of a middle income American worker today.
If the Mexican economy were to plunge into a deep and sustained recession, the
push-factor of immigration@ would impel millions of migrants to attempt to pour
over the border into the United States. The commitment by Presidents Bush and
Fox to integrate the U.S. and Mexican economies through free trade and more open
immigration policies will help the U.S. economy somewhat and will help the Mexi-
can economy hugely. NAFTA and immigration are economic safety valves for Mexico
and they must not be turned off. These policies ensure that Mexican migration to
the U.S. remains orderly, managable and legal, not chaotic and illegal.
A top priority for the U.S. should be to find ways to discourage illegal immigration
flows from Mexico and other nations. Over the past 50 years the U.S. government
has attempted many policies to try to deter illegal immigration. The employer sanc-
tions law, put in place in 1986 has been a grand failure and should be repealed.
It encourages employers to discriminate against foreign looking workers and it turns
businesses into INS enforcement agents.
One policy has worked extremely effectively and that is guest worker programs.
The Figure shows that in the late 1950s and early 1960s, when the U.S. allowed
as amnay as 400,000 legal temporary workers to come to the U.S. and gain employ-
68
ment in U.S. agriculture, the number of illegal immigrants plummeted. See Figure
6. Although there were clearly problems with the guest worker program in the early
1960s in terms of below standard working conditions for the Mexicans, from the
point of view of reducing illegal immigration the policy was a grand success. Mi-
grant workers will come to the U.S. through lawful channels if they are given the
opportunity. I urge this Congress to consider implementation of a guest worker pro-
gram for U.S. agriculture to help with the severe labor shortage for American farm-
ers and to dramatically curtail illegal immigration.
In sum, I believe a temporary guest worker program combined with a limited,
earned legalization program for those in the U.S. for at least 10 years should be
considered. Ten percent of the guest workers= wages should be held in an escrow
account that would be returned to the workers when they leave to go back to their
home country. Social Security payroll taxes should be collected from these workers
and paid in benefits at retirement age to these workers conditional on their not vio-
lating U.S. immigration laws during their lifetime. Criminal penalties should be im-
posed on smugglers who sneak illegal immigrants into the U.S. Cash fines should
be imposed on illegal immigrants and illegal entrants should forfeit their oppor-
tunity to participate in guest worker programs or other legal immigration channels.
In other words, the U.S. should say yes to legal immigration and a resounding no
to illegal immigration. I believe a guest worker program could be the lynchpin of
an effective border enforcement strategy.
Thank you again, Mr. Chairman for the opportunity to share my thoughts on
these critical economic issues.
Senator KENNEDY. Thank you very much. The headstrong opposi-
tion to the employer sanctions in the 1986 Act actually only ended
up, I think, with 26 or 28 votes in opposition to the inclusion of
the sanctions themselves at that time. I was not convinced that it
was going to be effective or going to work, and it certainly hasnt.
And we are committed to try to make adjustments on that as well.
Mr. Norquist, let me ask you from a conservatives perspective,
why does legalizationor your position on immigration, how does
that sort of fit? Maybe I dont understand the conservative position
historically well enough. But how do you seehow is this sort of
consistent? Do you think it is just a matter of common sense? Or
how do you come to this?
Mr. NORQUIST. Well, like all conservative positions, it is simply
a matter of common sense.
[Laughter.]
Mr. NORQUIST. But I would argue from an intellectual, ideolog-
ical viewpoint, there is a great concern about a government that is
too intrusive, that violates peoples property, that knows too much
about people, that does too much to and through them, and a gov-
ernment that knows where everybody is at all given times and
knows all sorts of information about them is a dangerous govern-
ment. I think privacy questionsthe level of intrusiveness. I dont
want the Government standing between everybody in this country
and their employer and telling them what they can or cannot do.
Capitalist acts between consenting adults should not be the pur-
view of Washington or Mexico City.
So I think it is also the idea that the Government was going to
police the border when we have jobs here and people want to come
and fit them and we have a failed Government program, which is
letting too few people into the country legally, either as guest work-
ers or on a citizenship track, or both. And when the Government
made that wrong mistake, it then decided it was going to band-aid
it by, you know, stopping people from crossing the border.
The Government doesnt do that very well. It doesnt do many
things very well, but it also doesnt do that very well.
69
Senator KENNEDY. Mr. Deffenbaugh, I appreciate your men-

tioning the establishment of the under-class. You know, this is the
first time we have heard about it over the course of our morning.
It is, of course, an important factor and a major concern concern
in a democracy. If you have people that are being subject to exploi-
tation, they may be willing to be exploited and suffer because they
are more often than not interested in their childrens well-being
and their childrens future, so they are willing to tolerate a good
deal of hardship. But if the children see that their parents are
being exploited, it begins to breed a kind of anti-authoritarian of
a concept, and added to a lot of the other kinds of complexity in
a society, I think it also can develop into social dynamite.
I was interested in why faith-based organizations support immi-
gration reform.
Mr. DEFFENBAUGH. Well, I think it is basically because of the
hardships now that are visited upon so many people because of the
current immigration policy. We have the fact of the deaths on the
border, you know, desperate people who simply want to come work
in our country, find themselves risking their lives to try to come
in, as Mr. Norquist said, to engage in a consenting capitalist act.
And we have the separation of families, which you mentioned so
eloquently in the introduction, where our current immigration pol-
icy has prevented close family members from being with each other
and has perpetuated those divisions. We also have then the simple
concepts of human freedom and offering people the opportunity to
benefit themselves and their families and to try to have a better
life for themselves.
That is all part of enhancing the human dignity, which, of
course, is a concern for any religious organization.
Senator KENNEDY. I think finally, Mr. Moore, just as we move
ahead in some of these areas with modest steps, we continue to see
a slowing down in the economy. What is your sense as an econo-
mist of what the implication will be in terms of unemployment and
pressure, downward pressure, particularly in terms of American
jobs? How do you look at this as an economist as to the swings that
we are facing either now or what you are able to estimate in terms
of the future? How worried are you or how concerned should we be?
Mr. MOORE. Well, there is both a political and an economic as-
pect to this. The political aspect is that historically, when times
have gotten tough, Americans have sort of tended to blame the im-
migrants, you know: If we didnt have these immigrants in here,
we would have these jobs, and so on. So it might make your job
a little more difficult politically to get this job done that needs to
get done. The unemployment rate numbers came out today, an-
other four-tenths of a percentage point increase. So that doesnt
make your job any easier.
However, if you look at the economic evidenceand I have done
a number of econometric studies that have been published in aca-
demic journalsthere really is almost no evidence, Senators, that
immigrants cause unemployment increases. It is really actually
quite fascinating. No matter how you look at the evidence, you just
dont find much evidence that immigrants cause unemployment
overall.
70
Now, there is some evidence that in certain occupations immi-

grants may come in and displace American workers from various
types of jobs. A good example of that is the Washington, D.C., taxi-
cab market. Thirty years ago, if you got into a cab in this town,
you probably would have had a black American driving that cab.
Today, if you get into a taxicab, you almost certainly will have an
immigrant who is driving you around town. So, to some extent, yes,
the immigrants have displaced the native-born Americans from
that occupation, but it is not as if unemployment rose. It just
means that those American workers have moved into other types
of occupations.
So I believe that the evidence over the last 20 years especially
shows that we can have a generous immigration policy and falling
unemployment. After all, in the early 1980s, we had 8 to 10 percent
unemployment. After letting in 15 million additional immigrants
and there were also several million illegals who came in that pe-
riodwe actually now have a very low unemployment rate. So
there is no correlation between being generous with respect to im-
migration and increased unemployment.
And, by the way, let me say it is also true with respect to wages
as well, that if you look over the last 20 years, median family in-
comes in this country have increased by 15 percent after inflation,
again, over a period of high immigration. And even, for example,
black, African American incomes have risen even faster than white
incomes over the last 15 years. So there is no evidence that I see
of direct harm to native workers from immigration.
Senator KENNEDY. Senator Brownback?
Senator BROWNBACK. Thank you, Senator Kennedy.
Let me say thanks to all the panelists. I want to say particularly
to Grover Norquist and Stephen Moore, as conservative voices, I
appreciate greatly you being out there and discussing the issue of
immigration and in a very positive sense because I think we are
in for a real strong discussion, a long discussion about this topic,
and we need to have a lot of strong voices out there.
We had the last panel with both a head of labor unions and a
head of businesses here saying we need to do the same sort of
thing, coming from different reasons, different perspectives, but at
the end coming to the same conclusion. And we need those strong
voices out there, so I am very appreciative of you being out there
and speaking, and I hope you will continue to, as I know both of
you will.
Mr. Moore, I want to hook into your last point that you made
about the economic situation. We are in a softer economy now. Un-
employment rates are going up slightly. The opinion you put for-
ward and the economic analysis that you have done previously
about there is no correlation between levels of immigration and un-
employment or wage levels, that is the dominant view of most
economists? I presume there are few that would disagree with that.
But that is the dominant economic view? Would that be correct?
Mr. MOORE. I believe so. Look, you know, on every public policy
issue that we deal with, there is always disagreement. But I think
there is a growing consensus. As you know, Senator Brownback
was it a year or two ago?the National Research Council did a
major study on what is the economic impact of immigration, and
71
they found that overall the impact was positive, that immigrants
led to an increase in GDP and so on. And so I think there is an
emerging consensus. You are still going to see people like George
Borjas, for example, of Harvard, who disagrees with me on some
of thisBriggs, Peter Brimelow. I call these guys the killer Bs.
But the fact of the matter is that I think the evidence has run very
much contrary to some of their theories.
Senator BROWNBACK. That has been my sense of where the over-
all theory of the economy is going. One other thing I want to point
out is something that you have done work on, the impact on our
Social Security system, Medicare system of the immigrant work-
force coming in, and that this is a key group helping us in solving
a difficult demographic picture that we are faced with.
Mr. MOORE. We need the immigrants now more than ever demo-
graphically. There is no question about it. I mean, you all know
about what is happening with the change in the demographic situa-
tion, and fewer workers entering the workforce and the emerging
baby-boom generation.
You know, what is happening all over the world is a kind of
graying of the workforce of industrialized countries, and the one
country that I think of all these countries that is able to solve this
problem easiest is the United States because we have this kind of
what I call a demographic safety valve of immigration.
You know, it is curious, Senator Brownback, that when I talk to
Europeans and people from Japan and so on, they are starting to
grudgingly concede that maybe they need a more open immigration
policy like the United States because they recognize what is hap-
pening in their countries with low birth rates. They realize that we
are skimming the cream. We are getting some of the best and tal-
ented minds and talents from around the world, and they are not
going to Germany and they are not going to Japan and they are
not going to France. They are coming here.
So I think this is a strategic economic advantage, and you are
right, the extent to which we have an aging population allows us
to benefit from the fact that most immigrants come to the United
States between the ages of about 18 and 30, right at the prime of
their working lives. This is a great bargain for Americans.
By the way, can I mention just one other quick thing on this,
Senator, in reference to your previous question about the economic
consensus? About 10 years ago, I did a survey of the past presi-
dents of the American Economic Association and the past Nobel
Prize-winning economists in the United States. This was a sample
of about 75 of the most prominent economists in the United States.
Now, they represent all different fields of economics and so on. And
I asked them in this surveyit was just a four-question survey.
What do you think is the economic impact of immigration? And we
found that it was almost universal that these highly distinguished
economists agreed that immigration has played a very crucial role
in Americas economic development over the last century and that
immigration will continue to be important.
So I think it gets to your point that there is this kind of con-
sensus among economists that this is good for our country.
Senator BROWNBACK. Mr. Norquist, what about the point about
the immigrant force and its impact on our Social Security and
72
Medicare system? I want to throw another twist to you on this.

Some are saying that if we create a legalized type of system, we
have a legalized worker system, they are going to pay into these
systems. They are paying into them now. But if they go back to
their home country, the Mexican Government is saying, well, there
should be some way that they should be able to have access to
some of the funds that they are paying in or some of the services
that they have paid for in the structure of our system. I wonder
if this doesnt bode for some sort of Social Security changes that we
might look at down the road, particularly for this force.
Mr. NORQUIST. Well, even with more immigrants coming in, you
could theoretically, if you are willing to bring in 100 million, keep
the present Social Security Ponzi scheme going. But you really
would need quite an increase in total immigration. But with higher
immigration, it still doesnt bail out the present Social Security
pay-as-you-go system. We need to shift to a system that is fully
funded, individually held, where there is real savings going on, as
other countries have done, as they have done in Galveston, Texas,
as State workers, the 15 million State and local employees do. They
have fully funded pensions. Those of us who dont work for State
or local government dont have fully funded Social Security pen-
sions. We need to move towards that, regardless of immigration.
It is an interesting question of what do you do with people who
have paid taxes. If the Mexican Government wants the money, I
think the answer is no. If the individuals themselves are interested
in it, you might want to cut some sort of deal and get them some
defined contribution pension, especially if you are going to have
guest workers who are just coming through and may wander back
again. You dont have that problem if you had like a 401(k) for
these immigrants or migrants, somebody who is coming in, put into
a 401(k), just as you or I can take a 401(k) or an individual retire-
ment account and move to Alabama or France with it. It is still
ours. But no one would move to France.
[Laughter.]
Senator BROWNBACK. I wont touch that one in your comments.
But I think it is going to be an interesting question that we are
going to need to confront. These are people that will move back and
forth and yet pay into that system. We need to structure it some-
how to where it is beneficial and rightly fitted to them, and I think
we need to look at some of these sorts of concepts where you do
have definable plans.
Mr. Deffenbaugh, finally, I would like to say thank you for all
the generous help your organization has done for immigrants. Sen-
ator Kennedy and I were both talking up here about how much
your organization helps on the firing line people on a daily basis
in this country and around the world, and for that you are for this
Nation fulfilling that admonition in Matthew 25 that I am deeply
appreciative of, those quotes about true religion is taking care of
widows, orphans, and the foreigner amongst you. And you help us
in fulfilling that for this Nation, and I am very appreciative of that.
You have also been supportive of the Refugee Protection Act that
is a bill that is put forward, Senator Kennedy is pressing on, the
chairman of the Committee is as well. I dont know if you have any
73
additional thoughts on it, but we look forward to your help on that

bill as well as on these overall immigration issues.
Mr. DEFFENBAUGH. Yes, and we are really appreciative of the
strong leadership that each of you have given on the Refugee Pro-
tection Act and on general issues relating to refugees and asylum
seekers in this country. As you so well know, it is important that
that Refugee Protection Act be passed so that we no longer have
this terrible contradiction in our country now where the Nation
with the Statute of Liberty in its harbor welcomes people fleeing
from persecution by locking them up while we adjudicate their
claims, if they are lucky; or if they are not lucky, they are turned
away at the airport and dont even have a chance to press their
claim. That is something that has to be changed.
Then the other legislation which is pending now, which is also
very importantand I say this from the perspective of an organiza-
tion which has a long history of working with unaccompanied ref-
ugee children and with other unaccompanied children who are in
INS custodyis the bill that Senator Feinstein introduced, the Un-
accompanied Alien Child Protection Act, which would change this
peculiar practice we have now in the United States of locking im-
migrant children behind bars instead of according to them the
same child welfare protections that would be considered standard
in a domestic setting.
Senator BROWNBACK. I appreciate your mentioning that. I might
mention to the chairman, while I was chairing this Committee,
Senator Feinstein raised this same issue, and I had promised her
we would hold a hearing on that topic.
Senator KENNEDY. It is set for September 19th.
Senator BROWNBACK. Great. What efficiency.
[Laughter.]
Senator BROWNBACK. Thank you all very much.
Senator KENNEDY. I want to thank you all. It has been an enor-
mously interesting hearing. As I said, I have rarely seen a public
policy question which brings about so much emotion and where
there is really a coming together in terms of these common-sense
recommendations and compassionate recommendations and rec-
ommendations that are clearly not just in the interest of the
United States, but I think other countries and families as well. So
we are really challenged. You have given us all the material now,
and we are going to do the best that we can. But we will be calling
on you for guidance, and we will invite you to, as you see this proc-
ess develop, give us whatever suggestions or recommendations you
have.
We will include in the record at this point the statement of
Chairman Leahy.
[The prepared statement of Senator Leahy follows:]
STATEMENT OF HON. PATRICK J. LEAHY, A U.S. SENATOR FROM THE STATE OF
VERMONT
This hearing occurs at a momentous time in our relationship with Mexico, and
in our national attitude toward immigration. I applaud Senator Kennedy for
chairing todays hearing, and for his longstanding dedication to the establishment
of fair immigration policies. I hope that we come out of this hearing with both a
clearer view of the Bush and Fox Administrations goals for the ongoing bilateral
discussions, and a strong consensus in the Senate that we will consult and work
74
with the Mexican Government in our consideration of changes in U.S. immigration
law and policy.
It was a wonderful experience to take part in President Vicente Foxs address to
a joint session of Congress yesterday. I am impressed by his energy and by his dedi-
cation to improving the lives of his people and the U.S.-Mexico relationship. I agree
with him that the lives of both our nations citizens would be enhanced by strength-
ened ties between our countries.
When I think back to the immigration debates we had in this Congress five short
years ago, during consideration of the Illegal Immigration Reform and Immigrant
Responsibility Act, I am pleased and amazed at the change in rhetoric we see today.
Five years ago in this chamber, immigrants received the blame for problems with
our national security and economy. Today, the majority of us view immigrants as
valuable additions to the American community and vital engines in the economic
growth we have witnessed over the last decade.
I do not want to prejudge the immigration proposals that the Bush and Fox Ad-
ministrations will make. But it is fair to say that I, along with most Senators from
both sides of the aisle, intend to be receptive and constructive toward the proposals
that arise from the U.S.-Mexico discussions. I have said in the past that we should
not offer immigration benefits only to residents of one nation, and I continue to be-
lieve that today. But given the importance of Mexican immigration I also believe
that we should pay close attention to the thoughts of the Mexican government and
the interests of Mexican nationals who are currently in the United States.
Senator KENNEDY. The Committee stands in recess.
[Whereupon, at 12:50 p.m., the Committee was adjourned.]
[Additional material is being retained in the Committee files.]


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Senate Hearing, 107TH Congress - U.s.-Mexico Migration Discussions: A Historic Opportunity

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S. HRG.

U.S.MEXICO MIGRATION DISCUSSIONS: A

COMMITTEE ON THE JUDICIARY

Serial No. J10738

Printed for the use of the Committee on the Judiciary

U.S. GOVERNMENT PRINTING OFFICE

For sale by the Superintendent of Documents, U.S. Government Printing Office

STATEMENTS OF COMMITTEE MEMBERS

FRIDAY, SEPTEMBER 7, 2001

UNITED STATES SENATE,

OPENING STATEMENT OF HON. EDWARD M. KENNEDY, A U.S.

The status quo is unacceptable. It must be replaced with sound

U.S.-MEXICO MIGRATION DISCUSSIONS: AN HISTORIC OPPORTUNITY

Senator KENNEDY. Senator Hatch?

to better themselves by pursuing higher education. So I look for-

supporter of that program. And I would like to recognize Senator

work for change in partnership with the dynamic new Mexican

In closing, I look forward to working with the Bush administra-

great tradition of America which has been so hospitable to immi-

ently startedabout coming up with an immigration policy that

Second, it seems to me that these measures to try to keep the

Mexicans and Americans to manage trade issues. And NAFTA has

Senator KENNEDY. So your point is that beyond just benefiting

Mr. PAPADEMETRIOU. Well, I guess the way that I would handle

about 3 million additional people remain in the United States ille-

mend you to try to seize this opportunity and hopefully to have a

Now, you have the well-known economic downturn which is grip-

Mr. DE CASTRO. I will say as much as the government can do it.

ployers who hide behind it to exploit and intimidate workers. It has

STATEMENT OF THOMAS J. DONOHUE, PRESIDENT AND CHIEF

There are two primary reasons why immigration reform in my

very careful, Mr. Chairman, of where you put that responsibility.

We need to understand we have to have those workers, or our

1 Labor Shortages and Illegal Immigration: Arizonas Three-Pronged Strategy, Arizona-Mex-

Senator BROWNBACK. That would be a nice picture, if you wanted

long-term residents to come out of the shadows. Those who can

II. THE OPPORTUNITY TO SHIFT THE DEBATE

So I think you are really challenged in the Committee to find two

Mr. YZAGUIRRE. Thank you, Mr. Chairman. It is a pernicious use

thorities. Now, if you are undocumented, if you are illegal, as John

of a guarantee that there are no U.S. workers who are available

be a major step in the right direction. I believe that these workers

The United States is different from other countries. We are not

[The prepared statement of Mr. Norquist follows:]

WE SHOULD TREAT IMMIGRANTS WITH THE SAME DIGNITY AS WE TREAT CITIZENS

HEMISPHERIC FREE TRADE: GETTING FROM HERE TO THERE

Not like the brazen giant of Greek fame,

EXHIBIT C: YAKOV SMIRNOFF, RUSSIAN-BORN COMEDIAN:

STATEMENT OF RALSTON H. DEFFENBAUGH, JR., PRESIDENT,

We have an opportunity nowand it is just amazing to see the

INTRODUCTION AND SUMMARY

THE DEADLY BORDER IS AT THE CENTER OF A HISTORY OF POLICY FAILURE

graph, Senator, is that you see very high levels of undocumented

Senator KENNEDY. Mr. Deffenbaugh, I appreciate your men-

Now, there is some evidence that in certain occupations immi-

Medicare system? I want to throw another twist to you on this.

additional thoughts on it, but we look forward to your help on that

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