Importing poverty--new data in immigration debate

Robert Samuelson:

The government last week released its annual statistical report on poverty and household income. As usual, we -- meaning the public, the media and politicians -- missed a big part of the story. It is this: The stubborn persistence of poverty, at least as measured by the government, is increasingly a problem associated with immigration. As more poor Hispanics enter the country, poverty goes up. This is not complicated, but it is widely ignored.

The standard story is that poverty is stuck; superficially, the statistics support that. The poverty rate measures the share of Americans below the official poverty line, which in 2006 was $20,614 for a four-person household. Last year, the poverty rate was 12.3 percent, down slightly from 12.6 percent in 2005 but higher than the recent low, 11.3 percent in 2000. It was also higher than the 11.8 percent average for the 1970s. So the conventional wisdom seems amply corroborated.

It isn't. Look again at the numbers. In 2006, there were 36.5 million people in poverty. That's the figure that translates into the 12.3 percent poverty rate. In 1990, the population was smaller, and there were 33.6 million people in poverty, a rate of 13.5 percent. The increase from 1990 to 2006 was 2.9 million people (36.5 million minus 33.6 million). Hispanics accounted for all of the gain.

Consider: From 1990 to 2006, the number of poor Hispanics increased 3.2 million, from 6 million to 9.2 million. Meanwhile, the number of non-Hispanic whites in poverty fell from 16.6 million (poverty rate: 8.8 percent) in 1990 to 16 million (8.2 percent) in 2006. Among blacks, there was a decline from 9.8 million in 1990 (poverty rate: 31.9 percent) to 9 million (24.3 percent) in 2006. White and black poverty has risen somewhat since 2000 but is down over longer periods.

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... It's usually held that we've made little, if any, progress against poverty. That's simply untrue. Among non-Hispanic whites, the poverty rate may be approaching some irreducible minimum: people whose personal habits, poor skills, family relations or bad luck condemn them to a marginal existence. Among blacks, the poverty rate remains abysmally high, but it has dropped sharply since the 1980s. Moreover, taking into account federal benefits (food stamps, the earned-income tax credit) that aren't counted as cash income would further reduce reported poverty.

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We need an immigration policy that makes sense. My oft-stated belief is that legal immigration should favor the high-skilled over the low-skilled. They will assimilate quickest and aid the economy the most. As for present illegal immigrants, we should give most of them legal status, both as a matter of practicality and fairness. Many have been here for years and have American children. At the same time, we should clamp down on new illegal immigration through tougher border controls and employer sanctions.

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Samuelson's point is so obvious it is amazing that it never entered the debate over immigration "reform." What the statistics do show is that restricting illegal immigration is not the economic loser that open borders proponents claimed. Increasing border enforcement and respect for the rule of law will have other benefits like making us safer and giving us control over how we grow our population.