Economic stimulus

"Dear America, please remember how you got to be the wealthiest country in history. It wasn't through protectionism, or state-owned banks or fearing free trade. No, the formula was very simple: build this really flexible, really open economy, tolerate creative destruction so dead capital is quickly redeployed to better ideas and companies, pour into it the most diverse, smart and energetic immigrants from every corner of the world and then stir and repeat, stir and repeat, stir and repeat, stir and repeat."

A New York Times op-ed today by Tom Friedman - quoted above - brings up some interesting points.  Enjoy. 

I.  We begin with the good news from this week - The President signs a children's health bill into law that provides for legal immigrant children.  Even though the recent debate over funding health insurance for children was contaminated by fears that "illegal immigrants" would sign up for the program, the bill still passed Congress and was signed into law this week.  It is a very encouraging sign that Members of Congress could see past the politics and recognize that this bill - and the provision that was for granting legal immigrant children care - was the best policy.  Congress and the American people showed how they are now ready to rise above the insults and demagoguery to enact smart policy.  The accusations rang hollow - that the bill would encourage more people to come to the United States to "get on the government dole," or that there was "no verification system to speak of ... in the bill," as stated by Lisa Sylvester on CNN's "Lou Dobbs Tonight," while the phrase "illegal alien bailout" flashed on the screen - all this was kicked to the curb because policy makers knew better.  They knew the truth, and demonstrated a desire to focus on solving problems as opposed to hating immigrants.  Donna Cohen Ross, director of outreach at the Washington-based Center on Budget and Policy Priorities, said she was not surprised by the Lou Dobbs rhetoric.  Still, after studying the House bill's language, she concluded that there was "nothing about the rules that would allow illegal immigrants to use the program."

But the fight is not over, as Simon has stated, "The immigration system is broken and there are a lot of people who live in this country who are not legal citizens,....So the issue of whether benefits are conferred upon them will come up again and again."  Hence the urgency to pass comprehensive immigration reform as a way to stop having domestic policy held up by immigration proxy fights. 

II. Mixed Messages - The debate in D.C. is focused around the economic stimulus package this week.  And while everyone says they care about helping businesses and helping "everyday working Americans," the "economic recovery" plans laid out by Congress are full of mixed messages - I won't delve into NDN's perspective on these issues individually at this time, I'm only pointing out key items that - to me - seem a bit contradictory: 

1.  On the one hand, the Senate kind of backed off the original "Buy America" provisions, diluting them after public outcry.  And yet, after diluting buy America, Senators turned around and came out against increasing H1-B - foreign - workers. 

2.  "He giveth and he taketh away" - A week after the Federal government decided to delay mandatory implementation of the E-Verify system for government contractors, the economic stimulus package could mandate that all recipients use this ineffective system.  Let me get this straight - you have companies that are struggling to the point they need government aid, and somewhere, someone believes it's a good idea to then turn around and impose an additional requirement on them that will potentially dilute any benefit conferred by the stimulus.  Mandating e-verify could require businesses to hire additional Human Resources personnel to become trained in and handle the e-verify checks.  Additionally, it will cause a delay for businesses in receiving the stimulus because most do not currently use e-verify, which means they can't get stimulus until they are trained and registered on the system.  Businesses will have to deal with DHS and SSA on a regular basis, and many workers will potentially lose their jobs as their data is run through e-verify, many unjustifiably.  At this time, all energy and money should be going to helping business get on its feet, and that should be the ONLY goal at this time, not to impose a bureaucratic process that does not even fulfill its intended role.  By all means, we support a functional system that could provide certainty to employers making hiring decisions, but that is not the current e-verify.  Let's worry only about stimulus at this point, then revisit E-verify as one part of a bill to enact comprehensive reforms to the entire broken immigration system.  

And lest we forget - the E-verify database does not contain immigration information, it was created by SSA to verify benefits with W-2s, it was never intended to serve as a system to check legal status.  As reported by the House Committee on Small Business, implementing this now will only hurt businesses - small businesses above all, who already suffer inflation, poor sales, and job loss.  

Finally, I have a test case that demonstrates what happens to business when you mandate the current - flawed - e-verify system: the State of Arizona.  IPC has data about this case, and NILC and CATO have written about it as well.  As Rep. Gabrielle Giffords testified during a committee hearing:

I believe that the Arizona experience should inform the ongoing debate about employment verification and whether the current E-Verify program administered through DHS should be extended and/or mandated Nationwide. 
Some of the businesses that have signed up have reported a variety of challenges and problems using E-Verify. They are finding it complicated, unreliable, and burdensome. They are having great difficulty getting answers from DHS to their problems about the system.  I have heard from employers, employees, and privacy rights advocates who are very vocal that nationally mandating E-Verify as it is would be potentially disastrous for our Nation. They are all experiencing the downfalls of using an inaccurate database with inadequate privacy protections.  Between October of 2006 and March 2007, roughly 3,000 foreign-born U.S. citizens were initially flagged as not work-authorized.  These errors have specifically impacted Arizona workers who have their ability to work wrongfully impacted. The experience of Arizona employers and employees makes it clear that we can do better and that action is needed.

III. Money = Policy.  A great piece by Nina Bernstein of the New York Times this week continued exposing details of how Immigration and Customs Enforcement (ICE) actually strayed away from its mission to protect us for the sake of meeting ridiculous "quotas" of arrests, originally reported in California last week.  Under President Bush, Immigration raids garnered bigger increases in money and staff from Congress than any other program run by ICE even as complaints grew that teams of armed agents were entering homes indiscriminately.  Raids on private homes around the country were billed as carefully planned hunts for dangerous immigrant fugitives, and given "catchy" names like Operation Return to Sender.  Federal immigration officials had repeatedly told Congress that among more than half a million immigrants with outstanding deportation orders, they would concentrate on rounding up the most threatening - criminals and terrorism suspects.

Instead, newly available documents show, the agency changed the rules, and the program increasingly went after easier targets. A vast majority of those arrested had no criminal record, and many had no deportation orders against them, either. Internal directives by immigration officials in 2006 raised arrest quotas for each team in the National Fugitive Operations Program, eliminated a requirement that 75 percent of those arrested be criminals, and then allowed the teams to include nonfugitives in their count.  In the next year, fugitives with criminal records dropped to 9 percent of those arrested, and nonfugitives picked up by chance - without a deportation order - rose to 40 percent. Many were sent to detention centers far from their homes, and deported.

What exactly was Congress expecting when it funded this particular program the most, and then did not partner that funding with oversight?  Money is policy, and if you put your dollars into making arrests, it's not exactly a shock when the recipient of the money focuses on making arrests - without regard for the type of arrest.  This is an example of why it's so important for advocates and for members of our community to look at where the dollars are going, and to shape where funding goes because that will necessarily dictate policy priorities. 

Now, as the Obama administration vows to re-engineer immigration policy to target criminals, we certainly hope they reverse these "internal directives," participate in oversight, and work with Congress so that relevant committees also understand their role in funding certain programs, and then continuing oversight after they decide to appropriate funds.  It will be interesting to see the role Janet Napolitano decides to play in all this - now that she has left Arizona politics behind, Ms. Napolitano is free to prove this is not Arpaio's America, where the mob rules and immigrants are subject to ritual attack and humiliation.

IV. Where is the Outrage? Speaking of ritual humiliation, even though 21st Century America is nothing like Sheriff Arpaio's America, this man refuses to let down.  This "Sheriff" from Maricopa County, AZ paraded more than 200 men and women in shackles and prison stripes, marched under armed guard past a gantlet of TV cameras to a tent prison encircled by an electric fence. They were inmates being sent to await deportation in a new immigrant detention camp minutes from the center of America's fifth-largest city.  Two things are troubling:  1) this has not been recognized as a NATIONAL civil rights issue by the media, most activists, and elected officials.  How can a man - particularly in the position of Sheriff - allowed to parade people like cattle, dehumanizing and humiliating them while they are in a legal proceeding.  We forget - MOST awaiting deportation are not criminals.  Where is our community's outrage at this man, and the outrage of the entire country, that people are paraded in such fashion in the United States of America?
And 2) Arpaio's tactics are even more infuriating given that his office's budget has nearly doubled since 2001. In the meantime, criminals have the run of Maricopa County. As reported by the Goldwater Institute and the East Valley Tribune, the sheriff has 40,000 outstanding felony warrants in his jurisdiction and 2,700 lawsuits filed against him.  So the money is going to pulling stunts as opposed to doing his job.  If he wants celebrity, let him step down. The duty of Sheriff is to keep people safe.  With crime rising, and being in a state that is largely involved in the drug trafficking fight, he should be more concerned with organized crime and fighting real criminals, as opposed to humiliating members of the community.  I share NCLR's call to action against him: 

Arpaio's newest scandal will by no means improve the safety of his community but no doubt get him more publicity. The images that this march will provoke are shocking: horrific shots of people chained, marching through public streets at lunchtime. Perhaps it's a ploy to increase the ratings of Sheriff Joe's new reality show, which is in its seventh week. Are you tired of his antics yet?  Here's what you can do:

1. Request that the Department of Justice investigate Arpaio's abuses.
2. Forward this email to all of your family and friends, post it on Facebook, and circulate it as far and wide as you can. Send a clear message to Arpaio and his thugs that we will not stand for these kinds of abuses in our nation.

Arizona Republic: Arpaio to Move Illegal-immigrant Inmates
Hundreds to be relocated to segregated area of Tent City; sheriff says plan will cut costs
February 4, 2009
By JJ Hensley and Yvonne Wingett

http://www.azcentral.com/news/articles/2009/02/04/20090204arpaiojail0204.html

Sheriff Arpaio Chains Together Immigrants and Forces
March
February 4, 2009
By Dan Weiss
http://imagine2050.newcomm.org/2009/02/04/sheriff-arpaio-chains-together-immigrants-and-forces-march

Stop Arizona. Stop Arpaio. Stop the Circus.
February 4, 2009
By Rev. David L.
Ostendorf
http://imagine2050.newcomm.org/2009/02/04/stop-arizona-stop-arpaio-stop-the-circus/

"Chain gang?" He should be worried about real gangs. So that you can see the "chain gang" for yourself:

This image was the headline on the Huffington Post website, until our post on "The Star Spanglish Banner" took its place for most of the day, and it goes very well with a piece in the Washington Post today by  Manuel Roig-Franzia.  As Republicans have a national meeting this week, they search for their misshapen identity.  In the meantime, since they have nothing else to propose and know nothing other than the exploitation of racial fear and hate, they decided to issue a statement claiming that the stimulus bill would help undocumented immigrants:

The $800 billion-plus economic stimulus measure making its way through Congress could steer government checks to illegal immigrants......The legislation, which would send tax credits of $500 per worker and $1,000 per couple, expressly disqualifies nonresident aliens, but it would allow people who do not have Social Security numbers to be eligible for the checks.

What this statement does not say, is that the stimulus steers checks to TAXPAYERS, it's not aimed at "illegal immigrants." In fact, the measure indicates that Social Security numbers are needed to claim tax credits of $500 per worker and $1,000 per couple. It also expressly disqualifies nonresident aliens.  Senate Majority Leader Harry Reid clarified, "This legislation is directed toward people who are legal in our country.  It is about time the Republicans got a different piece of reading material and get off this illegal immigrant stuff." said Sen. Reid, D-Nev. "This bill has nothing to do with anything illegal as far as immigration. It creates jobs for people who are lawfully in this country."  Not just U.S. citizens pay taxes - many legal immigrants under Temporary Protected Status or other programs file taxes, purchase homes, and get credit, so they would be eligible for a return.

Instead of trying to create a new "boogieman", the GOP should be thinking about how to be more inclusive - and inclusive does not mean having one member of one minority in a prominent position in your Party.  Some Members of Congress still - for reasons that I will probably never understand - think it is somehow out of line to repudiate racist/divisive attacks like Rush Limbaugh's.  At least Phil Gingrey took one step in the right direction by not shying away from repudiating some of the latest offensive attacks, namely by Limbaugh against our President:

"I think that our leadership, Mitch McConnell and John Boehner, are taking the right approach," Gingrey said. "I mean, it's easy if you're Sean Hannity or Rush Limbaugh or even sometimes Newt Gingrich to stand back and throw bricks. You don't have to try to do what's best for your people and your party. You know you're just on these talk shows and you're living well and plus you stir up a bit of controversy and gin the base and that sort of that thing. But when it comes to true leadership, not that these people couldn't be or wouldn't be good leaders, they're not in that position..."

Lastly, and more importantly, aside from whatever Republicans do or don't do, this statement tying the immigration debate into the stimulus debate exemplifies a greater trend that Simon and NDN have predicted will occur with the entire domestic agenda until immigration reform is passed:

"That the debate.....has immediately become a debate about immigration should be a clear warning to the Administration and Congress that progress on many important domestic priorities this year may get caught up in the debate on how to best fix our broken immigration system. It is our belief that rather than having a series of tough and contentious proxy fights [with Republicans and with Democrats] on immigration, our leaders should recognize that passing comprehensive immigration reform this year will not only help fix our badly broken immigration system - a priority of many Americans - but may also be the key to unlocking bipartisan progress on a whole range of other domestic and security related issues." 

Reports from the Pew Hispanic Center and others, released at the end of 2008, show disturbing data on the impact of the economic crisis on minorities, and I hope Tim Geithner is up to speed on this information and keeps minorities in mind as he helps map the course for economic recovery.  We hope Geithner's confirmation hearings over the next few days will pass to a speedy confirmation so that he can get to the business of governing "for all Americans," along with President Obama.

Data show that minority workers have fewer employment opportunities, lower wages, or both as compared to their white counterparts. As a result, they tend to have lower incomes and slower income growth.  And because minorities are less well suited than white families to save and build an economic cushion, hard economic times place them in tougher conditions sooner than is the case for white families.

Hispanics are currently suffering a percent of unemployment much higher than that of their white counterparts, 9.2% in January, up from 8.9% unemployment in December 2008.  In addition, the unemployment rate for Hispanics rose faster than for any other group, increasing by 3.1% from December of 2007-December of 2008, while the unemployment rate for whites rose by 2.1% and for blacks, 2.9%.

Even during a period of employment gains enjoyed by Hispanics from 2001-2007, poverty increased among Hispanics over the same period, which only highlights the low wages at which Hispanics tend to work. In 2007, 8.2 percent of whites lived below the poverty line, up from 5.4 percent in 2000, but well below the 21.5 percent of Hispanics who lived below the poverty line in 2007.

Lastly, personal and family income has steadily declined for Hispanics.  From 2001-2007, family incomes for whites were about 30 percent greater than for Hispanics and that gap has increased over time.  Hispanics' median family income declined by an average of 0.5 percent per year from 2000, the last full year before the last recession started, to 2007, the last year for which data are available, falling to $38,679 from $39,935, or by a total of $1,256 (in 2007 dollars). In comparison, whites' median family income fell at a much lower rate of just 0.003 percent per year, for a total decline of $12 between 2000 and 2007, to $54,920 from $54,932 (in 2007 dollars).

Large disparities in health insurance coverage also persist.  In 2007, 32.1% of Hispanics lacked health insurance coverage, compared to 10.4% of whites.

Additionally, Hispanic home ownership rate was only 49.7% for Hispanics in 2007, compared to 75.2% for whites.  While the annual average increase of homeownership was greater among Hispanics, many were also victims of bad-actor lending companies and they ended up purchasing high-cost mortgages, as opposed to market rate mortgages.  Nearly 29% of home purchase loans made to Hispanics in 2007 were high cost, as opposed to only 11% for whites.

We encourage Secretary Geithner and President Obama to show courage and leadership in developing an economic stimulus and economic recovery that addresses these discrepancies and includes financial literacy for minorities.  In addition, we encourage President Obama to take the lead on fixing our broken immigration system in order to help stem this economic crisis.  As long as the trap door of undocumented immigration remains, we will not be able to achieve economic recovery.  It is vital that Congress and the Administration realize that as long as we continue the race to the bottom fostered by our broken immigration system, we will not achieve economic recovery.