Commentary Magazine


Texas Public Policy Is Case Study

Labor-related immigration to the United States has always been driven by basic economics. Border security is certainly essential to any country’s obligation to safeguard its homeland, but the volume of immigration from Mexico was a blaring message from the labor market that even (sometimes especially) self-described free marketers chose to ignore.

Hopefully those politicians will heed the lessons in a new report, mentioned approvingly here by Michael Barone at the Washington Examiner, that net illegal immigration from Mexico is now zero–that is, immigration has tapered off and is now below replacement levels. Barone says he cannot vouch for the exact numbers in the report, but he thinks “they’re very much in the ballpark.” Falling birthrates in Mexico and an American recession have contributed to the change, but they do not seem to be the main drivers. Here’s Barone:

For some years I feared that Mexico could not achieve higher economic growth than the United States since our economies have been tied so tightly together by NAFTA since 1993. But in the past two years, Mexico’s growth rate has been on the order of 5 percent to 7 percent. It’s looking like Mexico’s growth rate is tied not to that of the United States but to that of Texas, which has been a growth leader because of its intelligent public policies which have prevented public employee unions from plundering the private sector economy.

Remember when a certain Texas governor was warning fellow Republicans that education and a strong economy were better solutions than a fence? Though the symbiotic economic relationship between Texas and Mexico is long established, and Mexican reforms in the mid-1990s have helped keep the peso stable, recent trade between the two has increased and been a boon to both countries:

Three Texas customs districts, Laredo, El Paso and Houston, rank among Mexico’s top four trading partners. Collectively, they accounted for roughly $235 billion in trade between Texas and Mexico from January to September 2011, according to United States Census data analyzed by WorldCity, which tracks global trade patterns. The figures show an increase over 2010 despite the American recession and unprecedented violence in Mexico because of warring drug cartels.

One more time: an increase over 2010 despite the American recession and unprecedented violence in Mexico. Texas has been a job creator and engine of growth during a recession and global economic downturn in two countries, stabilizing immigration levels along the way and buttressing the argument for free trade. Of course, it’s worth noting that to produce this economic success story, Texan public policy is just about the polar opposite of that of the Obama administration. If nothing else, the first Obama term has at least given us a tidy case study.

Join the discussion…

Are you a subscriber? Log in to comment »

Not a subscriber? Join the discussion today, subscribe to Commentary »

Pin It on Pinterest

Share This

Share This

Share this post with your friends!