Why Trump’s Immigration Position Is Hurting Him

The issue of immigration handed Donald Trump the Republican nomination. His style of communication, emphasis on the issue, and seemingly simple solutions courted, converted, or imported a core group of GOP voters to support his candidacy. Many expected Trump to moderate his immigration stance after winning the nomination, but Trump doubled-down on his anti-legal immigration position at a recent speech in Phoenix. This election is a great test of whether Americans will vote for a candidate whose substantive policy focus is immigration restrictionism. 

His choice to focus on immigration was successful during the Republican primary, but it’s not fairing as well with the general electorate. Since 1965, Gallup has asked Americans, “In your view, should immigration be kept at its present level, increased, or decreased?” Over time, Americans have become more supportive of liberalizing immigration. In 1965, only 7 percent of respondents wanted to increase immigration. The most recent 2016 poll found that 21 percent wanted to increase immigration (Table 1).

Figure 1

Should immigration be kept at its present level, increased, or decreased?


Source: Gallup Survey

No, Mr. Trump, U.S. Firms Are Not Investing Heavily in Mexico or China

In the first presidential debate, Donald Trump said, “We have to stop our companies from leaving the United States and, with it, firing all of their people… . They’re going to Mexico. So many hundreds and hundreds of companies are doing this.” He later added, “The companies are leaving. I could name, I mean, there are thousands of them. They’re leaving, and they’re leaving in bigger numbers than ever.” But Trump didn’t name thousands. He named two: Ford and Carrier.

U.S. companies commonly grow by expanding overseas, often to meet local demand (e.g., McDonald’s and Uber) rather than to export back to the United States. 

The amount invested is recorded as Foreign Direct Investment (FDI) abroad.   

The graph shows the United States’ total direct investments in select countries for 2009 and 2015, valued at historic cost. U.S. Direct Investment AbroadContrary to Mr. Trump’s excited rhetoric, there has been very little FDI in Mexico, and such investments did not increase significantly from 2009 to 2015. In fact, China is now suffering a capital outflow, with a quarter of U.S. companies reportedly moving out.   

U.S. firms mainly invest in their subsidiaries in Europe and Canada, and do so largely to service those markets more quickly with lower shipping costs. The U.S. runs a large trade deficit with Europe, second only to China, but that is a symptom of Europe’s economic weakness rather than strength. Stagnant economies neither need nor can afford many imports.

U.S. direct investment in Australia and Singapore increased significantly from 2009 to 2015. Far from being a threat, however, the U.S. runs sizable trade surpluses with both countries (and with Canada and Hong Kong), and has a Free Trade Agreement with Singapore.

Record Grad Rates, Subprime Diplomas?

Today the White House is touting record-level high school graduation rates, and taking a bit of credit for them. But is this really good news, or are we maybe looking at artificially inflated, “subprime” diplomas?

Certainly, on its face, it is welcome news that the percentage of students who entered high school four years earlier and graduated on time rose from 79 percent in the 2010-11 school year to 83.2 percent in 2014-15. (2010-11 was the first year that states were required to use a standardized graduation rate.) We definitely wouldn’t want to see that rate going down. But it does not necessarily indicate that students are better educated.

Scores on the National Assessment of Educational Progress—a federal test given to a representative sample of students, without high stakes attached—suggest that greater completion does not necessarily go hand-in-hand with greater learning. Both math and reading scores for 12th graders have dropped a tad during the Obama years, not risen. In addition, there is at least anecdotal evidence that districts have increasingly moved kids to completion with dubious “credit recovery” programs that sometimes involve very thin demonstrations of subject mastery. In other words, as seemingly happens so often, districts may be gaming the system, and many diplomas could be hollow.

This is not to say that the rising graduation rate is necessarily deceptive, and it is crucial to note that standardized test scores that seem so concrete may actually tell us little about whether we are getting what we want out of education. But we shouldn’t celebrate too lustily over the latest graduation news.

A Constitutional Amendment to Re-Empower the States

When the Framers designed our federalist system, they assumed that the federal government would be limited to those powers actually enumerated in the Constitution and that it would exercise those powers only when authorized by statute. Further, to give the states some say in the drafting of these statutes, one half of the federal Congress—the Senate—was elected by the state legislatures themselves and designed to reflect the interests of the state governments.

Today, none of these elements of our original design remain. The Supreme Court has allowed the federal government to control nearly limitless activities, supposedly as an exercise of its power to regulate interstate commerce. The executive branch acts as its own de facto legislative branch, “interpreting” statutes through executive actions and agency rulemaking to unilaterally give itself the powers it wishes to exercise. And after the passage of the Seventeenth Amendment, senators are now elected by popular vote, meaning there is no longer any direct link between the state and federal governments. The result of these three changes is that states have less power than ever – and there’s not much they can do about it.

To solve that problem, Representatives Rob Bishop (R-UT) and Cathy McMorris Rodgers (R-WA) recently introduced the “Re-Empowerment of the States Amendment,” a proposal that would allow two thirds of the state legislatures to repeal any “Presidential Executive order, rule, regulation, other regulatory action, or administrative ruling issued by a department, agency, or instrumentality of the United States.”

Importantly, this amendment would not allow states to repeal the text of statutes that have duly passed both houses of Congress. This isn’t an amendment to change the system of bicameralism that the Framers designed; instead, it’s an amendment to restore the checks on the executive branch that existed before the massive expansion of the administrative state. As the amendment’s creator David Hemingway has explained, “The practical result would be to enhance the power of Congress since it would encourage the president to work with Congress rather than govern by issuing executive orders.”

You Ought to Have a Look: Misleading Storylines and False Beliefs Lead to Poor Policy

You Ought to Have a Look is a regular feature from the Center for the Study of Science.  While this section will feature all of the areas of interest that we are emphasizing, the prominence of the climate issue is driving a tremendous amount of web traffic.  Here we post a few of the best in recent days, along with our color commentary. 

We highlight this week a collection of items which have a common thread—poorly informed beliefs lead to poorly formulated policy. And poorly formulated policy is worse than no policy at all.

For starters, consider this article by Cato senior fellow Johan Norberg, in support of his new book, Progress: Ten Reasons to Look Forward to the Future. Writing in CapX, Norberg looks at the reasons “Why are we determined to deny that things are getting better?” He points to how the media, in combination with our own psychological tendencies, lead us to the false assumption that the state of the world is declining, when in fact, trends are overwhelmingly in the other direction. Norberg points out that there is a danger in our misperception, “People led by fear risk curtailing the freedom that progress depends on.”

Here are some expects from his article:

A couple of years ago, I commissioned a study in which 1,000 Swedes were asked eight questions about global development. On average, every age group and every income group was wrong on all eight questions – because they all thought the world was in bad shape and getting worse. Large majorities, for example, thought that hunger and extreme poverty have been increasing, when they have in fact been reduced faster than at any other point in world history. And those who had been through higher education actually had less knowledge than the rest.

It’s not just Sweden. In Britain, only 10 per cent of people thought that world poverty had decreased in the past 30 years. More than half thought it had increased. In the United States, only 5 per cent answered (correctly) that world poverty had been almost halved in the last 20 years: 66 per cent thought it had almost doubled.

Why do we make these false assumptions? Many of them are formed by the media, which reinforces a particular way of looking at the world – a tendency to focus on the dramatic and surprising, which is almost always bad news, like war, murder and natural disasters.

…[P]eople led by fear might curtail the freedom and the openness that progress depends on. When Matt Ridley, author of The Rational Optimist, is asked what he is worried about, he usually responds “superstition and bureaucracy”, because superstition can obstruct the accumulation of knowledge, and bureaucracy can stop us from applying that knowledge in new technologies and businesses.

Johan’s full article, along with his new book, are well worth the taking the time to explore. A good place to start is this Cato book series event, where you can listen to Johan talk about his viewpoint and describe his findings.

Trump Derangement Syndrome

Back in 2003 the psychiatrist and columnist Charles Krauthammer declared a new psychiatric syndrome, “Bush Derangement Syndrome: the acute onset of paranoia in otherwise normal people in reaction to the policies, the presidency – nay – the very existence of George W. Bush.” He had a point. But derangement can be generated by support as well as opposition for a political figure.

What do we say about conservatives – people who believe, variously, in limited government, free markets, Judeo-Christian values, and the importance of character in public life – who have been forced to utter absurdities in defense of Donald Trump? It’s one thing to say that Hillary Clinton and her Supreme Court justices and her 4,000 bureaucrats are on net worse than Trump and whatever menagerie he brings to the White House. But when free-market conservatives find themselves enthusiastically defending the most protectionist presidential candidate since Pat Buchanan, or Christian conservatives are forced to say that personal character isn’t really a big issue for them, I fear that derangement has set in. Take just a few examples in the past few days.

In Thursday’s Wall Street Journal Karl Rove writes that Trump needs “a Republican House to pass his agenda.” But his agenda is trade war, deportation, and banning adherents of the Muslim faith from entering the United States. Is that an agenda a Republican House would pass? Say it ain’t so, Karl (or Paul).

Trump Adviser Peter Navarro: Reagan Critic, Industrial Policy Fan

Donald Trump always sounded just like a Bernie Sanders Democrat when talking about international trade. “We have one issue that’s very similar,” he said, “and that’s trade.”  That Trump-Sanders hostility to trade liberalization, in turn, is identical to that of the AFL-CIO and the Economic Policy Institute, a leftist think tank created and largely financed by labor unions.

It should be no surprise that Donald Trump’s most influential adviser and spokesman on international trade, Peter Navarro, is a former unsuccessful Democrat politician who seems closer to an old-style Bernie Sanders leftist Democrat than to a Bill Clinton “New Democrat.”

The only academic among Trump 13 economic advisers, Navarro returned to being an economics professor at U.C. Irvine, after losing San Diego mayoral election to Republican Susan Golding. In 1993 Navarro wrote the book, Bill Clinton’s Agenda for America.

With one caveat, the book was full of glowing praise for everything Clinton promised to do – notably lots more federal spending (which, ironically, fell substantially).

Navarro’s doubts about Clinton concerned NAFTA, which Bush created but Clinton promised to change. “I thought the NAFTA agreement ought to have been more properly called ‘SHAFTA,’” says Navarro.  But he notes that “candidate Clinton later acknowledged the problems of the environment and lost jobs raised by NAFTA, and called for wage safeguards and stricter environmental regulations. It remains to be seen whether this was merely rhetoric, or a serious concern that will have policy follow-through.”