2013-06-03

Cato: The Arizona Law Fights Phantom Problems

The Supreme Court will probably judge the Arizona immigration law as constitutional, given the sad state of American constitutional law, even though it infringes on the economic liberty of Arizonans and expands the government’s role further into their most intimate economic decisions.
The law modifies a mandatory E-Verify provision that makes all Arizonans ask the federal government for permission to be hired. Worse, E-Verify falsely labels about 1 percent of legal Americans as unauthorized workers, sending them on a bureaucratic odyssey when they should be gainfully employed. As a result, E-Verify is not being used for about 30 percent of new hires in Arizona, moving much of that state’s workforce into the informal economy.
The Arizona law also strengthens the so-called business death penalty. This two-strike policy — under which second-time business offenders that hire an unauthorized worker or don’t use E-Verify for all hires — essentially kills a business by taking their business licenses. E-Verify and the business death penalty make hiring workers more expensive and uncertain, which diminishes job creation.

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