Cato Institute
Policy Analysis
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By the 1980s, the United States was seeing
employers to run background checks with the
a strong flow of immigrants from Mexico and
government on new or existing employees to
Central America. This paralleled earlier flows
see whether they are eligible to work under the
from Germany, Ireland, Italy, and elsewhere,
immigration laws.
but these immigrants could enter through
A full-fledged EEV system has many prac-
uncontrolled parts of a land border without
tical and technical problems, to say nothing
documentation. In 1986 Congress determined
of the question of whether it is appropriate
that illegal immigration rates were too high,
for a free country. But the human forces that
but in passing the Immigration Reform and
a policy would channel or counteract are the
Control Act,8 Congress failed to recognize
most important influences on how the sup-
porting technical system must be designed.
either the power of the economic forces under-
Those forces determine where the challenges
lying such immigration or its benefits.
the system will come from and what the
While legalizing the illegal aliens in the
human and monetary costs will be if it is to
country, Congress declined to expand legal
work for its intended purpose. Immigration
channels for immigration. Instead, it changed
law--today deeply at odds with Americans'
the long-standing natural rule that working in
interests--is the source of the problem and
the United States depended simply on willing-
the starting point for analysis.
ness and ability. Americans' right to earn an
honest living by trading their labor would now
America's Original Open Borders Close
have to wait for proof of compliance with fed-
At the time of the founding and during the
eral immigration laws.
early part of U.S. history, the country's immi-
gration policy was one of open borders. Nat-
"Internal Enforcement" and "Basic
uralization rules fluctuated, and the law
Pilot"
authorized the president to expel dangerous
IRCA made unlawful the knowing hire of
foreign nationals, but immigrants were wel-
workers who are not eligible to work in the
United States under the immigration laws.9
come.
Indeed, in 1864, because of a labor short-
By requiring employers to check employees'
age caused by the Civil War, Congress passed
documentation, the law conscripted employ-
legislation to encourage immigration. It
ers into immigration law enforcement. All
allowed enforcement in U.S. courts of the
employers today are required to verify
agreements immigrants had made in their
employees' work eligibility by collecting com-
home countries to repay their travel costs
pleted I-9 forms and by checking employees'
documentation.10
from wages earned in America. The law also
established a federal government office in
The logic behind this idea was simple:
New York City to help immigrants reach their
making it illegal to hire an illegal immigrant
Americans' right
interior U.S. destinations.7
could reduce the strength of this country's
to earn an honest
economic "magnet." But the policy of "inter-
In 1875 Congress passed the first law to
nal enforcement" built on this simple logic
exclude people, aimed at convicts and prosti-
living by trading
failed. Just as a magnet's attraction passes
tutes. The practice of exclusion was promptly
their labor would
through paper, the attraction of the United
adapted to racial and ethnic prejudice by 1882's
States to immigrants surpasses this paper-
Chinese Exclusion Acts, and, in the 1920s, a
now have to
work.
national-origin quota system greatly restricted
wait for proof
The I-9 process and employer sanctions
immigration from countries outside northern
of compliance
undoubtedly had some effect on illegal immi-
and western Europe. National-origin quotas
gration and working, but not very much.
persisted until 1965 when the Immigration and
with federal
Between 1986 and 1996, illegal immigration
Nationality Act Amendments initiated a seven-
immigration
rates appear to have remained steady.11 Docu-
category system for family reunification and
employment-based categories.
ment fraud undermined the I-9 system, and
laws.
4