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Executive Voices

Hispanics
Illegal aliens or believers in the most fundamental law of economics?

By Dr. H. Nolo Martinez


From the Census 2000 data we learned our state is not only more diverse than it was 10 years ago, but also that recent immigrants have made tremendous contributions to the communities where they settle in North Carolina. The influx of immigrants workers into the metropolitan areas of Charlotte, the Triangle, and the Triad area have done more to help revitalize neighborhoods than any government program. Many of our rural counties experiencing graying and consequent retirement of their workforce continue to benefit from Latino immigration, particularly for blue-collar jobs that require manual labor but not necessarily an English-speaking tongue.

The 1990 census counted 79,000 Latinos in the Tar Heel State. Ten years later, the state’s Latino population increased 394 percent to 378,963. North Carolina leads the country in the percentage growth of its Mexican population, an increase of 655 percent, far ahead of second-place Georgia and Tennessee, which was third. Over the next 50 years Hispanics population is expected to increase 238 percent. Current demographics also reveal that over the next 20 to 30 years a large percentage of the current workforce in N.C. will retire.

Over the years the United States has been called a nation of immigrants. We are also a nation of laws. Parts of our legal system are designed to support the economic law of supply and demand. By and large, the current U.S. immigration system also supports the law of supply and demand for all but one type of worker — the essential worker.

An essential worker is the unskilled and semi-skilled worker employed in all sectors of our economy. Essential workers include restaurant workers, retail clerks, construction trades people, manufacturing line workers, hotel service workers, food production workers, landscape workers and health care aides. These individuals often work in the jobs that many Americans do not choose, but which are essential to keep our economy and our country growing.

Most essential workers in N.C. are Latino immigrants. For example, according to the state Employment Security Commission, 75 percent of construction workers in metropolitan counties are Hispanics, as are more than 95 percent of Mexican guestworkers in agriculture and more than 50 percent of those working in meat processing plants.

Even with the recent slowdown of the economy, the employers of essential workers are still looking for employees. The service, retail, construction, health services and other similar industries all gained jobs while the high-tech and manufacturing sectors were laying off employees. However, it appears that these workers are finding other employment quickly, while essential worker employers are still begging for applicants.

President George W. Bush long has recognized the disconnect between economic reality (supply and demand) for essential workers, on the one hand, and the U.S. immigration system, on the other. It was this realization that brought him and President Vicente Fox of Mexico to the brink of an historic agreement on trans-border migration issues. Unfortunately, the events of Sept. 11 have delayed the discussions but issues of economic reality will bring speed to these discussions.

Mexico’s economy is the largest in Latin America and is the United States’ second-largest trading partner after Canada. Mexico’s imports from the U.S. are the equivalent of more than $175 billion, more than Germany, Italy, Spain and France combined.

The problem of illegal immigration in the U.S. has been a recurring one since the introduction of restriction policies in 1954. The illegal alien problem is largely a creation of government. An unknown number of these people simply work alongside other immigrants or American workers under exactly the same working conditions. Significantly, their employers most likely withhold all the same payroll taxes as for any other employee.

There are revealing contributions of undocumented-essential workers to the U.S. economy. When the Social Security Administration collects payroll taxes for someone for whom a valid Social Security number cannot be found, these earnings go into a “suspense file.” Since 1937, this file has collected $265 billion in wages and, the report says, the file has grown $17 billion annually since 1990. This makes a good case that those workers that many like to call illegal aliens are really undocumented taxpayers.

Regulating the presence of undocumented  but essential workers in N.C. would bring all of those people into the mainstream economy, where they would be less vulnerable to economic and civil exploitation. Legalization would also help reduce the resentment of many who complain about paying for public services like schools and hospitals that serve the families of “non-taxpaying” undocumented workers because they would be treated like everyone else.

Even when the economy is not growing, the ambition and energy of the immigrants can fuel the state’s economy. Far from taking jobs, the newcomers have and will create jobs for themselves and other that simply would not have existed without the migration. How many North Carolinians intend to start a Puerto Rican restaurant, an Aztec gift shop, or a 24/7-taxi bilingual service in rural counties?

The federal government sets the policies that determine how many and which immigrant enters the U.S. We cannot continue to accept the benefit of the labor of essential workers while supporting an immigration system that treats them as if they do not exist. Many essential workers and those employers that hire them have clearly violated the U.S. immigration laws, however, these workers have obeyed one of the most powerful laws of all: the law of supply and demand.

Dr. H. Nolo Maartinez is director of Hispanic/Latino Affairs in the Office of the Governor and a faculty member at N.C. State University in Raleigh.

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