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What is the most fundamental human right? A lesson from North Korea

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The title of this post may be a trick question, considering that the name of this website is Open Borders: The Case. I recently finished reading Only Beautiful, Please: A British Diplomat in North Korea (Amazon link), authored by former British ambassador to North Korea John Everard. Everard lived in Pyongyang and built relationships with many North Koreans in the professional class, which is how he came by the information in his book.

The book is interesting for many reasons — how often do we get a look inside the world’s most secluded and arguably most oppressed society? But from an immigration standpoint, one passage on page 82 of the paperback edition caught my eye:

The attraction of the West was its much higher standard of living, not the ability of Western citizens to speak freely or to vote. The only real freedom that I found my contacts did want was the freedom to travel — to be able to visit relatives without the cumbersome bureaucracy of travel permits, and (among some of the less poor ones) the ability to travel abroad. Cheju Island, off South Korea (where South Korean newlyweds used to aspire to spend their honeymoons before honeymoons abroad became fashionable) was a particular draw; it seemed to have caught the imagination of young North Koreans as a place of great beauty, and I was scolded more than once when I had to admit that I had never been there.

One can argue that North Koreans don’t really understand the value of other freedoms, some which they’ve never experienced at all. But North Koreans have experienced the most closed borders regime in modern history; it seems absurd to argue that they have a significantly better grasp of what it means to have freedom of movement than they do with freedom of speech or the ballot. Yet in one paragraph, Everard captures the burning North Korean desire for freedom that burns brightest: open borders.

Closed borders keep people from working in the legal and social regimes which foster economic prosperity. They keep people from living in legal and social regimes which protect and promote the rights and dignity of human beings. They keep people apart from their most loved ones. They keep people away from the beauty of new experiences, new sights, and new sounds.

The complaints most of us have about our lives and our governments pale in comparison with most anything a North Korean has the right to complain about. And yet the one freedom North Koreans seem to want most is the freedom most of us lackadaisically dismiss as one not worth thinking about. Modern passport and visa regimes force people to live under unjust governments or hollow economic systems. They tear people away from their friends and family. They prevent people from learning new things about the world, prevent them from experiencing new wonders of life and nature.

You may argue that allowing people the presumptive right to travel where they wish is too much of an imposition on you. Fair enough. But you need to show reason to believe that this is the case — that we can reasonably believe a sojourner or immigrant to your country will prove an imposition, and that the cost of this imposition is too much for society to bear. You cannot simply say “I just don’t care about you — go on and suffer, because you weren’t lucky enough to be born in my country”, unless you wish to disclaim any pretense of common humanity with those foreign to you.

There is an argument to be made that untrammeled freedom of movement for literally all people would be too much of an imposition to bear. But in some sense, this is a strawman: I think most open borders advocates believe that a single country which immediately opened its borders today would likely face significant costs enough to outweigh the benefits to humanity from its open borders. And I think most open borders advocates are open to revoking the presumptive right to freedom of movement for individuals who constitute proven or likely threats to public order or health. It remains that the focus of our conversation on borders should not be: “Why should we have to let them in?”

After all, most people are not thieves or criminals. Most people don’t carry contagious diseases that threaten public health. We should be asking ourselves: “Why should we have to keep good human beings out?” The burden of proof has to be on those who would deny to any human being, born in North Korea or not, a most fundamental human freedom, a freedom that is perhaps second only to the right to life itself: the freedom of movement. Without movement, we have no agency in our lives; without movement, we lose all that makes life worth living.

The great land value windfall from open borders

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One of Steve Sailer’s themes seems to be “affordable family formation.” In the link, Sailer lays out a theory of housing prices: expensive in coastal cities because they can only expand on the landward side; really expensive in “paradises” like Hawaii and (to a lesser extent) California; cheap in “dirt” states where cities can expand in all directions. He sees “affordable family formation” as one of the main factors in making a state vote Republican. And he sees restricting immigration as a means of keeping housing prices down and family formation affordable. Partisan goals aside, it’s surely desirable for people to be able to afford to form families.

As a theory of voting, there may be something in this, but as an argument for restricting immigration, it is extremely unconvincing. If you look at a map of population density in the United States (Census Bureau), what stands out is how few and far between are the counties with 2,000+ people square mile, and how the vast majority of the country’s land has less than 90 people per square mile. Even 2,000 people per square mile is hardly crowded. That’s about an acre for a family of four. Granted that can’t all be living space. There are streets and schools and shopping malls and parking lots and all that. But 2,000 people per square mile is a comfortably thin suburb. The Census Bureau also reports that “94.6 percent of U.S. land is rural open space.”  Granted, not all land is equally pleasant to live on, and the emptiest land is in the Great Plains and other regions that most people probably wouldn’t want to live in, but there’s lots and lots of lightly settled land in verdant, temperate, even beautiful country, say in the mid-Atlantic or upstate New York, or for that matter where I live in central California. Even coastal California is pretty empty if you go north of San Francisco, or between San Luis Obispo and Monterrey. There are plenty of very livable places in America where hardly anyone is living. I think land’s share of national income is about 5%. We’re not running out of (residential) land, not even close. (Farming covers more ground, but farming is a lower-valued activity that residential users can easily buy out.)

In denying that land is scarce, I refute one critique of immigration, but you might suppose, I also forgo an argument for immigration, namely, the land value windfall for native Americans when immigration increases demand for the land they own. Surely I can’t claim that immigration benefits American homeowners by raising housing prices, yet at the same time doesn’t harm American non-homeowners by raising the housing prices they’ll face when they want to buy.

Actually, I can and do claim exactly that, and what inspired this post is that I thought of a graphical way to make the point clear. First, the effect of open borders on the market for existing housing is represented in Figure 1:

Figure 1.

market for existing housing

The stock of existing housing is, by definition, fixed– supply is perfectly inelastic— so an increase in demand due to new immigration would only raise prices. American landowners would see their real estate rise sharply in value. You might think that American landowners would only enjoy these gains if they sold, but that’s not true. Land in city centers isn’t just more expensive, it’s more valuable, because it’s close to more things, more restaurants and fun things to do, more schools, more jobs, more shopping, more varied people, more transportation. Not all Americans would put as much value on the changes as market prices would put on them; that’s why they’d sell. Meanwhile, the market for new housing would look like Figure 2:

Figure 2

market for new housing

The supply curve of new housing is horizontal because the land it’s built on would be basically free, being taken from farming activities, and the construction cost is constant. Actually, the construction cost would probably fall under open borders, given the abundance of low-wage homebuilders that would be available, but never mind. Since supply of new housing is perfectly elastic, the increase in demand would not raise housing prices at the margin. As quantity rose from Q (status quo) to Q (open borders), there would be a building boom.

Why would people pay the high prices shown in Figure 1 for existing housing, when new housing is available at P=C? Location, location, location. As cities would expand outward, the existing housing stock would be more central, and consequently more desirable, so it would command high prices. But in that case, wouldn’t American non-homeowners, even if they could still afford homes as easily as before, be pushed into less desirable locations. Not really. After all, why is urban land desirable in the first place? Density. The land per se is usually nothing special, but it’s valuable to be able to plug into the networks of specialization and trade that the city provides. Well, as cities expanded to accommodate immigrants, they could provide as much of the benefits of density to the new housing as they previously did to the old housing, even as they provided even more of these benefits to existing housing. So American non-homeowners would be held harmless even as American homeowners enjoyed a large windfall.

Of course, I’m simplifying. The supply of new land for home building isn’t always perfectly elastic. Some city sites, like San Francisco, really are uniquely beautiful and special. That said, the almost uninhabited coastline north of San Francisco is beautiful, too. Meanwhile, many other city sites– Indianapolis, say, or Denver, or Fresno– really aren’t very special. Older cities have special historic monuments. It’s possible that the new urban space called into being by the open borders building boom would be drab and lacking in character, though on the other hand technological modernity plus immigrant new perspectives might make them especially exciting. Even then, though, there would be adjustment pains, and probably in some places family formation would become less affordable.

By and large, though, the effect of immigration on land values is, if not a win-win, a win-draw: homeowners gain, non-homeowners are held harmless. The wealth effects of the land value windfall would be not only large, but widely distributed. As of 2009, over 67% of American households owned homes.

International Tiebout competition

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A major reason for skepticism about open borders among many who are partially sympathetic is the fear that poor immigrants will vote for redistribution. Natives might benefit, on average, from their interaction with immigration in the market, but in the political arena, poor immigrants with little to lose will vote for higher taxes and government handouts, making natives worse off. To deny immigrants the vote would solve this problem in theory, but raises other philosophical issues about the meaning of consent of the governed, and in any case might not be politically sustainable. Opportunistic parties might hand out citizenship to immigrants who they hope will be their future constituency. Immigrants might also take advantage of their physical presence to agitate in the streets for the vote and/or directly for the government benefits they hope to win by it. In short, open borders will make government more redistributive.

But the logic of Tiebout competition points the other way. Tiebout (1956) famously argues that local governments will provide public goods efficiently if people are free to move among jurisdictions, and concludes that we can expect public goods to be provided more efficiently at the local level than at the national level. Caplan recently explained where Tiebout goes wrong: (1) local governments are not perfectly competitive but face downward-sloping demand curves for residence and so can extract monopoly rents; (2) emigrants can’t take their real estate with them so bad local governments will reduce property values; and (3) local governments aren’t for-profit corporations and don’t face the incentives that for-profit corporations do to give customers/residents what they want. All good points, but there’s still something to be said for “voting with the feet.” Local governments may not be profit-maximizing firms, but they still differ in their performance, and people do get some choice over what local public goods they want by deciding where to live. In the short run, local misgovernment may depress property values more than inducing migration, but in the long run, capital can be adjusted, and misgoverned places can revert to weeds while well-governed places teem with new high-rises. And local governments are still somewhat competitive.

In the Tiebout model, government provides public goods rather than engaging in redistribution. The people who choose to live in a location don’t mind paying for what the government does, because they regard the benefits as greater than costs. If not, they would move. The government might charge the rich more than the poor, if it’s still providing the rich value for money, and especially if the rich value local public goods more, in money terms, than the poor do, which is plausible, since they presumably get less marginal utility from a dollar but might not get less marginal utility from a statue in the park or clean air or good streetlights. But if the government charges the rich too high a price for local public goods, they’ll move to a jurisdiction with lower taxes, and explicit redistribution is ruled out by the exit option.

Garett Jones has pointed out that a comparison of state tax regimes with federal tax regimes seems to support (loosely) the Tiebout model. See “Can Progressivity Survive Exit?”:

I should note though, that while state taxation is regressive in percentages, it’s progressive in dollars.  And that’s the point of my tweet: Higher earners pay more than lower earners even though they could leave.  Perhaps some of that is altruism, but I suspect-without-proof that most of it is just that the rich (and middle class) buy more and better government services than the poor.
It’s possible that progressive income taxation could coexist with voluntary competitive government. Maybe the high-skilled need to be near each other to produce a lot, so the locales preferred by the rich can tax that demand for proximity.  The (not very progressive) New York City income tax comes to mind.But at the national level, I suspect that the reason the rich pay higher total tax rates is mostly because it’s hard to leave the nation.  Easy targets.

Jones also points to the French government’s retreat on capital gains taxes as a victory for “[the] Tiebout [model against] progressivity” (I think that’s what the title of his post means). And here he entertains the suggestion that the fact that European tax systems are much less progressive than America’s is explained by Tiebout competition. Since the EU has open borders, wealthy elites can shop among jurisdictions. I don’t know enough about European tax politics to affirm or deny the causal link here, but it fits the theory. An international comparison of corporate tax rates also suggests that Tiebout competition is at work. From the Tax Foundation’s blog, here are “Corporate Income Tax Rates Around the World.”

Country Corporate Tax Rate in 2000[1] Rank in 2000 Corporate Tax Rate in 2006 Rank in March 2006
Japan 40.9 3 39.5 1
United States[2] 39.4 6 39.3 2
Germany 52 1 38.9 3
Canada 44.6 2 36.1 4
France 37.8 7 35 5
Spain 35 11 35 5
Belgium 40.2 4 34 7
Italy 37 9 33 8
New Zealand 33 16 33 8
Greece 40 5 32 10
Netherlands 35 11 31.5 11
Luxembourg 37.5 8 30.4 12
Mexico 35 11 30 13
Australia 34 14 30 13
Turkey 33 16 30 13
United Kingdom 30 21 30 13
Denmark 32 18 28 17
Norway 28 26 28 17
Sweden 28 26 28 17
Portugal 35.2 10 27.5 20
Korea 30.8 20 27.5 20
Czech Republic 31 19 26 22
Finland 29 24 26 22
Austria 34 14 25 24
Switzerland 24.9 28 21.3 25
Poland 30 21 19 26
Slovak Republic 29 24 19 26
Iceland 30 21 18 28
Hungary 18 30 16 29
Ireland 24 29 12.5 30
OECD Average[3] 33.6 28.7

Note that the US has the second-highest (after Japan) corporate income tax rate in the OECD. This is counter-intuitive, since ideologically the US has a reputation for being free-marketeer and pro-business, with a comparatively thin welfare state and less regulation. But if international Tiebout competition is at work, this pattern is sort of what you’d expect. The US is big and geographically isolated, so corporations based in the US won’t find it very easy to hop the border. European countries face steeper competition from other jurisdictions, so companies are relatively mobile.

Open borders would make international Tiebout competition a more effective force for disciplining governments’ redistributive impulses. But here I don’t mean primarily unilateral open borders, nor open borders with very poor countries. The US government is not likely to cut taxes on the wealthy for fear that they’ll emigrate to Rwanda, or even Mexico. But it might someday cut taxes to keep the wealthy from moving to Hong Kong, or Italy, or some yet-to-be-founded futuristic free charter city. If the right to emigrate were made a global reality, international Tiebout competition might start to matter a lot.

Continue reading International Tiebout competition →

True stories from immigration law: US citizens have no right to be with their spouses

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The US legal doctrine of consular nonreviewability leads to over a million people being refused visas every year, with no legal avenue to challenge the consular officer’s decision, no matter how arbitrary, prejudiced, or groundless it may be. But beyond affecting these foreigners’ lives, there are real effects on US citizens too. One effect of racial segregation which social justice discussions often gloss over is how unjust laws oppressed not just the visible immediate victims, but also others, ostensibly privileged, who wished to engage with the oppressed. Such is the case with immigration laws around the world today. US legal precedent is especially enlightening here.

Filipino-Hawaiian lawyer Emmanuel Samonte Tipon last year blogged a useful overview of relevant cases touching on when someone might have legal standing to sue for judicial review of a visa application. Let’s go over them one by one.

  1. Sabataityte v. Powell: Sabataityte was denied a visa because the Warsaw consulate believed she had been previously unlawfully present in the US. She challenged this determination. The courts ruled that regardless of the merits, she had no right to mount such a challenge.
  2. Saavedra Bruno v. Albright: Saavedra was denied a visa, and had another visa revoked, because the US government believed he had previously illicitly trafficked drugs (based on a hit when they searched his name in a database). This was news to Saavedra and his American employer, both of whom sued the government to present the evidence so they could challenge the determination that he was a drug trafficker. The courts ruled that both Saavedra and his American employer had no legal basis to confront the claims against him or challenge the visa refusal.
  3. Hermina Sague v. United States: Sague, a citizen, married Berger, a Frenchman, and applied to permit him to enter the US so they could live together as a family. The government denied Berger a visa, and Sague sued, insisting she had a right as a citizen to live with her husband in the US. The courts ruled that it was impossible to challenge the consular refusal and moreover, based on legal precedent, “there is no constitutional right of a citizen spouse … to have her alien spouse enter the United States.” Perhaps even more perversely, “once an alien has entered our jurisdiction, even illegally, he may only be expelled after proceedings conforming to the traditional standards of fairness encompassed in due process of law. However … ‘an alien on the threshold of initial entry stands on a different footing.'” In other words, if you want due process, you need to enter the US illegally.
  4. Centeno v. Shultz: Centeno, a Filipino citizen, applied for a visa to visit his American family, and was denied. He and Coane, his American brother-in-law, sued to appeal this decision, arguing that the decision was arbitrary and violated Coane’s first amendment rights to engage in discussion with his brother-in-law. (You laugh, but violation of citizens’ first amendment rights is one of the few grounds citizens have to challenge consular officers’ decisions.) The US Court of Appeal essentially laughed Centeno and Coane out of court in a one-page decision.
  5. Patel v. Reno: Patel, a US citizen, applied for visas for his non-citizen wife and children. The government, suspecting Patel had obtained citizenship by fraudulent means, instructed the consulate in Mumbai to place Patel’s application in limbo, where it laid for 8 years. The courts ruled that since no final decision had been made, this visa application was subject to judicial review. Since the application had been in suspended state for 8 years, the courts ordered the consulate to make a final decision on whether to grant the application within 30 days. At the same time, the courts affirmed that not even the Secretary of State had the power to overturn the visa decision once it had been made.
  6. Kleindienst v. Mandel: A seminal case in US immigration law. Mandel was a Belgian Marxist who had travelled to the US many times to speak. In 1969 he applied for a visa and was refused on grounds of his politics. He and the citizens who had invited him to speak sued, citing amongst other factors, the government’s denial of the citizens’ first amendment rights to freedom of speech. The Supreme Court eventually ruled that an infringement of first amendment rights could be grounds for judicial review; broadly, the consular decision on a visa application must have “a facially legitimate and bona fide reason”. Immigration lawyers regard this as a landmark case for immigrant rights, but in reality, the Supreme Court went on to say that allowing Mandel his visa on first amendment grounds risked destroying the doctrine of consular nonreviewability, since by definition virtually all immigration restrictions infringe on citizens’ first amendment rights. The court then held that Mandel was not entitled to judicial review of the consular decision.
  7. Udugampola v. Jacobs: Udugampola, a US citizen, applied for an immigrant visa for her non-citizen father. The government initially approved the petition, but at the consular interview, the officer there denied the visa because he suspected her father of terrorism. Udugampola and her mother (also a legal immigrant to the US) sued the government. The courts ruled that neither Udugampola’s rights as a daughter nor her mother’s rights as a wife were constitutionally-protected in this case, and they had no basis to challenge the consular decision.

A common thread runs through all these: no matter whose interest are at stake, there is virtually no right to question a consular decision, even if it is based on flimsy evidence or is egregiously wrong. Even if it splits up a marriage, the government has absolute totalitarian power. And these are just the cases which get as far as prominent courts in the US. How many thousands of families must there be, lives ruined by immigration law, around the world? How can any self-respecting person in this day and age reconcile the outright disdain immigration law has for our families and communities with modern ideals of liberty and human rights?

The photograph featured at the top of this post is of Mario Chavez embracing his wife Lizeth through the US-Mexico border fence at Playas de Tijuana. The original photograph is copyright David Maung, and was published by Human Rights Watch; a higher-resolution version is available at their website.

 

Immigrants Are Attracted to Jobs, Not Welfare

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This post was originally published on the Cato-at-Liberty blog here and is republished with the permission of the author.

Unauthorized and low skilled immigrants are attracted to America’s labor markets, not the size of welfare benefits.  From 2003 through 2012, many unauthorized immigrants were attracted to work in the housing market.  Housing starts demanded a large number of workers fill those jobs.  As many as 27 percent of them were unauthorized immigrants in some states.  Additionally, jobs that indirectly supported the construction of new houses also attracted many lower skilled immigrant workers.

Apprehensions of illegal crossers on the Southwest border (SWB) is a good indication of the size of the unauthorized immigrant flow into the United States.  The chart below shows apprehensions on the SWB and housing starts in each quarter:

 

Fewer housing starts create fewer construction jobs that attract fewer crossings and, therefore, fewer SWB apprehensions.  The correlation holds before and after the mid-2006 housing collapse. 

What about welfare? 

Here is a chart of the national real average TANF benefit level per family of three from 2003 to 2011 (2012 data is unavailable) and SWB apprehensions:

 

Prior to mid-2006, TANF benefit levels fell while unauthorized immigration rose.  During the housing construction boom, unauthorized immigrants were attracted by jobs and not declining TANF benefits.  After mid-2006, when housing starts began falling dramatically, real TANF benefit levels and unauthorized immigration both fell at the same time.  If unauthorized immigration was primarily incentivized by the real value of welfare benefits, it would have fallen continuously since 2003.   

The above chart does not capture the full size of welfare benefits or how rapidly other welfare programs increased beginning in 2008.  As economist Casey Mulligan explained in his book The Redistribution Recession, unemployment insurance, food stamps (SNAP), and Medicaid benefits increased in value and duration beginning in mid-2008.  Including those would skew welfare benefits upward in 2008 and beyond, but unauthorized immigration inflows still fell during that time.

In conclusion, housing starts incentivize unauthorized immigration while TANF does not.