Arizona Immigration Laws (and Joe Arpaio) Called Out by Cato Institute for Economic Woes

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The Cato Institute -- a libertarian think-tank -- needed just seven words to sum up its report today on how Arizona's immigration laws are affecting business, and put those words right at the front of its analysis: "Arizona's immigration laws have hurt its economy."

Not only that, but the Maricopa County Sheriff's Office and Sheriff Joe Arpaio got special recognition for helping hurt business in Arizona.

See also:
-Why Janet Napolitano Should Read the Cato Institute Report on Immigration Reform

The report takes a look at the 2007 Legal Arizona Workers Act -- which came with an E-Verify mandate for businesses to make sure everyone's hiring authorized workers -- as well as SB 1070, and how the state's economy is doing with those laws in effect.

The Legal Arizona Workers Act -- which also includes a "death penalty" for businesses hiring undocumented immigrants -- has businesses hiring fewer workers, moving out of Arizona, or just operating off the books, according to the Cato Institute.

The think tank blames 1070 for "exacerbat[ing] the Great Recession in Arizona," among other things.

"States now considering Arizona-style immigration laws should realize that the laws also cause significant economic harm," the report says. "States bear much of the cost of unauthorized immigration, but in Arizona's rush to find a state solution, it damaged its own economy."

An example of that can be found in the report's section on workplace raids. Of course, that's where Arpaio becomes a prime example, with his "employer sanction operations"/immigrant roundups. Arpaio fancies himself as a job-creator with the workplace raids, but as you can imagine, the economic analysis says that's false.

Noting that MCSO is the "biggest user and proponent" of [workplace] raids, and uses press releases and the media to multiply their deterrent effect," the Cato Institute points out what happens after a couple of these raids.

Using E-Verify does not prevent the disruption and closure of the "guilty" business locations. For example, the March 4,2011, raid on the Pei Wei chain restaurant locations in Tempe, Phoenix, Fountain Hills, and the corporate headquarters in North Scottsdale eventually shut down eight different Pei Wei restaurants in Arizona. The economic loss was an estimated $1.3 million in business revenue for the chain. PeiWei used E-Verify to confirm the work status of its employees, but the system's inaccuracies and loopholes allowed the chain to hire unauthorized workers. Twenty-seven people were arrested in the raid, and according to an MCSO investigation, 121 of Pei Wei's 800 employees in Arizona were unauthorized immigrants. Other raids on Golfland Sunsplash in Mesa and Waterworld Safari in Phoenix on June 10, 2008, netted 9 arrests. The raids took place despite the fact that the water parks checked their employees' identifications through E-Verify.

The analysis also mentions the MCSO raid of the Scottsdale Art Factory in 2009. Prosecutors sought the "business death penalty" after the raid, which is the third time that's happened. The other two "death penalties" weren't fought because the companies ended up going bankrupt anyway. The report says the Scottsdale Art Factory -- which has been in business since 1913 -- is still fighting the case in court.

Later in the paper, the Cato Institute suggests it's also possible that Arpaio and MCSO helped drive up housing-rental rates in the Phoenix area.

"Rental vacancy rates in Tucson and Phoenix moved in the same direction prior tothe passage of LAWA but immediately after LAWA they diverged, with Tucson's ratesfalling while Phoenix's rose," the analysis states. "This could be because many unauthorizedimmigrants and as well as authorized Hispanics left the harsher enforcement of the Phoenix area MCSO and moved to Tucson, which is known for its more lax enforcement of Arizona's immigration laws."

Of course, there are several factors related to immigration law affecting the economy that aren't related to Arpaio and MCSO.

You can see the report here -- there doesn't seem to be much money to be made with the nativist attitude.



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11 comments
brookertooker84
brookertooker84

Check out the new radio show on 960AM The Patriot as we discuss many "hot topics" & look for solutions! It is the time to Unite as Americans & make our voices heard to all our politicians that we are tired of the back & forth arguing, we want to vote & make real changes in this country~

 

This Saturday Sept 29th at 7pm we will be discussing a big top for Arizona: the immigration laws & Sheriff Joe. 

 

You can listen on 960AM the Patriot OR online at www.960thepatriot.com

 

Like our facebook page WeThePeople:UnitingAmerica

https://www.facebook.com/unitingamerica.wethepeople

 

Brittanicus
Brittanicus

 

The TEA PARTY (THE PEOPLE’S) PARTY should not be defined as just white people; they are not, they are millions of Americans of every nationality and skin color. My chapter has Hispanics, Black people, Asians from every walk of life.  We are “The People “frustrated with the corruption in both parties.  The Liberal oriented mainstream media have constantly lied about the agenda of the TEA PARTY. The TEA PARTY are moderate Constitutionalists, not the hard core Marxist-Communist-Socialists entrenched amongst the Democrats who want open borders and no laws to stop illegal migrants and immigrants from thrashing the U.S. taxpayers safety net.

 

If you want higher taxes; higher gas prices at the pump; an archaic tax system that benefits the privileged in both parties; a ever growing federal government with rules and regulations that inhibit new business creation; and a president that is giving even more to the “freeloader” parasites that cohabit with the illegal alien invaders who are draining the state reservoirs of money.

 

Brittanicus
Brittanicus

The 9th circuit court is run by a bunch of Liberal judges, who interpret the laws according to their plan, not to the edicts of the Constitution. If something isn’t done in the next presidency, America will be further overrun with –unfettered poverty. It’s still not a felony to cross illegally into this sovereign nation and as I see it and millions who are involved in the TEA PARTY, the laws have been ignored for years.  Why should citizens or lawful immigrants with papers have to compete with illegal aliens? I just know America is in serious trouble with a 16 trillion dollar deficit, and no real enforcement to stop more human financial encumbrances entering through our borders or jetting in from a foreign country. It’s a real catch 22 situation with the winners being businesses using cheap labor, selling more TV and household appliances, food and a whole retinue of things needed to live. They go to the bank loaded down with their dollars, but the taxpayers must foot the bills for free health care, free children’s schooling to K-12, government housing and other special programs, while citizens-residents pay the immense bill.

 

 I am sure about is the plan of the TEA PARTY if they can eject many Democrats and Republican incumbents and replace them? It’s already happening and by replacing incumbents in the Republican Party can politically persist that the “LEGAL WORKFORCE ACT (E-VERIFY) and the BIRTHRIGHT CITIZENSHIP LAW” finds passage and enacted to restrain more illegal alien invaders. They bring their unborn babies here, to live as parasites of the U.S. taxpayer. The children of illegal aliens had no say in coming to America, but by the enactment of the BIRTHRIGHT CITIZENSHIP BILL, this incredulous expensive issue for taxpayers is solved.

 

 

 

Brittanicus
Brittanicus

None of these immigration laws are going to matter, if Obama returns for a second term? The only people its going to financially effect ids the taxpayers and the hundreds of billions of dollars to be extracted forcibly from their taxes. President Obama is sure to enact another blanket amnesty as Reagan did in 1986. Only chance to stave any of immigration policies, is to vote as many TEA Party legislators into Congress as possible.God help us from the two corrupt political parties if we do not? Better also be alert for Democratic Voter fraud now until November, because ACORN is not dead.

jihobbyist
jihobbyist

In 10 years, the only companies that are left in Arizona will be the ones that pays fair wages to workers and legal immigrants. Something we all want to see happen. Companies that refused to pay workers fair wages will go out of business. No need for seven words to sum this up, just one "Darwinism".

 

The CATO's report is full of conjectures, and offer very little useful analogies. Stats can be easily pulled by reading random WSJ articles, at best. For the next 5 to 10 years, Arizona will go through tough readjustment. Similar to many companies that's forced to go through major disruption in their market, ie. Apple,IBM, etc. I could go on.

 

Arizona should be praised for doing something that will benefits its citizen, and set a new standard for how companies should operate and be a responsible member of our society.

wigglwagon
wigglwagon

"The Cato Institute -- a libertarian think-tank -- needed just seven words to sum up its report today on how Arizona's immigration laws are affecting business, and put those words right at the front of its analysis: "Arizona's immigration laws have hurt its economy."

 

What should we expect from a think tank that is funded by exploitive employers?

ari01
ari01

more liberal lies

 

er wait, libertarians?

 

hmm...

gerry_c
gerry_c

Interesting information.  The suggestions of economic harm seem to be supported in the report.  Although a lot is projection and conjecture, on the bulk, I think the report is accurate in its overall conclusions.

 

 

fairymagic13
fairymagic13

 @jihobbyist Do you realize just what is left of SB1070?  Law Enforcement Officers can now ask to see someone's "papers".  However, the person being asked doesn't have to show them and there no law against not showing the papers.  SB1070 is impotent and neutered.  Get a clue dude!

 

admacd
admacd

 @ari01 It's interesting how your mind works, ari02.  You have no new information on the economy in question, but you hesitate to decide about the truth, or not, of the analysis based solely on its authorship.  Is that smart, do you think?

ari01
ari01

 @admacd you don't sarcasm very much I take it

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