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April 03, 2006

Applying the Banana Solution to Illegal Immigration

The brawl over illegal immigration involves, at essence, jobs. Mexicans can't get jobs in their own country so they come here. Employers say they can't find Americans to do the work, so they hire Mexicans. Americans may not like the concept of 12 million Mexicans in the US, but they are loathe to pay wages high enough to call forth US labor, which would drive up consumer prices.

The result is a Mexican standoff, so to speak.

Solutions range from Wall Street Journalesque open borders to fence construction. As far as I can tell, nobody has advocated what I call the Banana Solution, aimed at breaking the Mexican standoff and giving consumers the option of voting with their dollars on whether they accept illegal workers or not.

What's the Banana Solution?

The concept follows the approach of TransFair USA, which certifies bananas and other products as being grown and marketed according to standards that protect workers. A TransFair USA background paper explains,

Fair Trade certification ensures that farmers receive a fair price for their top-quality fruit, and that farm workers have good working conditions and receive fair wages. Without Fair Trade certification, small fruit farmers often receive only a few cents a pound for their crop, far below the cost of production.

In January 2004, TransFair USA signed up Wild Oats Markets as the first chain to stock certified bananas. Along with the expected plug for supporting workers, TransFair USA explained its program in terms that would make Ayn Rand happy:
Fair Trade Certified� products provide a point of differentiation for companies offering them. They also help companies build customer loyalty and tap into new consumer segments. With this initiative, Wild Oats Markets increases its industry-leading Fair Trade commitment. The Boulder, Colo.-based food retailer also sells Fair Trade coffee, tea and chocolate, and expects to add other Fair Trade produce items in the future.

If products can be certified and promoted as a point of market differentiation, why not the workforce? Just as consumers can vote with their dollars for certified bananas, they may appreciate the option of spending their dollars with a workforce certified to be legally employable in the United States. Let's call it the Certified Workforce solution.

The concept is simple: TransFair USA or another independent group would monitor a company and certify that its workers are all either US citizens or legally authorized to work in the US. I always thought the US government and state labor departments did chores like that, but evidently they're not doing too good a job, so let's try a free-market solution.

Companies that pass the stringent certification process can then use a logo to tell consumers that they are a "100% certified legal-to-work shop" or some other snappy description. Groups like the AFL-CIO, which already has its "Union Label" program, might get behind this approach. Companies' prices might rise, but they could argue they're paying higher wages, providing benefits and protection, and doing their part to combat unemployment among citizens and green-card holders. Consumers thereby gain the option of supporting such companies, or continuing to spend at others that decline to take part.

The companies that take a pass can also gain a marketing advantage among consumers who tolerate the idea of shopping at companies that employ illegal aliens at sub-minimum wages. Or, non-certified companies could argue they support worker privacy, the international proletariat, open borders, or some other rationalization.

The Certified Workforce approach deals with illegal immigration on the demand side -- jobs. Reduce the number of jobs and you reduce the incentive to migrate here. Why be miserable and unemployed in the US when you can be miserable and unemployed in Latin America? Of course, the US offers many non-employment related lifestyle advantages, but that's another essay.

The program also gives consumers a voice in the illegal immigration debate. Currently, I don't have a choice when I shop. No mechanism informs me of the status of a workforce, which is one important factor when I make consumer choices.

If such a program catches on, consumers can indicate whether they care about illegal immigration. If they do, then companies with the Certified Workforce will gain a market advantage; if consumers prefer to look the other way and pay lower prices in exchange for the oppression of underpaid illegal immigrants, then the program fails and we can drop all pretense of logically addressing the issue.

In either case, let's give it a try. If certification can work for bananas, it can work for workers.

Van | 04/03/06 at 10:24 PM | Categories: Domestic Politics

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Blogs which link to Applying the Banana Solution to Illegal Immigration:

» The Action Faction: State Governments on the Move from Kesher Talk
From both the left and the right, the most interesting moves in government are happening at the state level. While the federal government appears stalled and pre-occupied, the states are taking action on abortion, healthcare, illegal immigration, and m... [Read More]

Tracked on April 20, 2006 10:40 PM

Comments

Huh...interesting idea...I am trying to get my head around it.

Not that I always agree with him but Tyler Cowen is pretty smart...I wonder what his take would be.

Also ask Michael Blowhard -- he's not an economist but he is astute and is a real immigration freak.

Raw Data | April 4, 2006 01:16 AM

That's a good idea! For me I'd prefer a "law-abiding employer" stamp or something, that certifies that the company pays its employees according to the law, regardless of their status. I guess this would have a similar effect, but put the emphasis on the exploitative and illegal actions of the company.

Tara | April 4, 2006 10:58 AM

Actually the illegals are not usually employed at sub-minimum wage. The days of squeezing farm workers is pretty much over.

It is very hard work for the money though.

M. Simon | April 4, 2006 08:28 PM

A very innovative and intersting idea on a very controversial subject. The idea somewhat relates to my personal view on the issue of illegal immigration in the United States - it is driven by big, big money. The adoption of a "good immigration practices" certificate would not only be beneficial for consumers but bring an element of much needed transparency. However, the program would also become a money generating scheme for the government(although a suspect that wasn't Van's original idea behind it).

Dark Matter Politics | April 15, 2006 07:45 PM

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