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Paul Krugman, The New York Times, May 25, 2007

A piece of advice for progressives trying to figure out where they stand on immigration reform: it’s the political economy, stupid. Analyzing the direct economic gains and losses from proposed reform isn’t enough. You also have to think about how the reform would affect the future political environment.

To see what I mean — and why the proposed immigration bill, despite good intentions, could well make things worse — let’s take a look back at America’s last era of mass immigration.

My own grandparents came to this country during that era, which ended with the imposition of severe immigration restrictions in the 1920s. Needless to say, I’m very glad they made it in before Congress slammed the door. And today’s would-be immigrants are just as deserving as Emma Lazarus’s “huddled masses, yearning to breathe free.”

Moreover, as supporters of immigrant rights rightly remind us, everything today’s immigrant-bashers say — that immigrants are insufficiently skilled, that they’re too culturally alien, and, implied though rarely stated explicitly, that they’re not white enough — was said a century ago about Italians, Poles and Jews.

Yet then as now there were some good reasons to be concerned about the effects of immigration.

There’s a highly technical controversy going on among economists about the effects of recent immigration on wages. However that dispute turns out, it’s clear that the earlier wave of immigration increased inequality and depressed the wages of the less skilled. For example, a recent study by Jeffrey Williamson, a Harvard economic historian, suggests that in 1913 the real wages of unskilled U.S. workers were around 10 percent lower than they would have been without mass immigration. But the straight economics was the least of it. Much more important was the way immigration diluted democracy.

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