Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

Think how you would feel if a speeding driver cuts you off and gives you the finger, and then a few miles down the road you see that same driver pulled over by the police, with his hands cuffed. That feeling is called “schadenfreude” and it’s how I felt when I read this outstanding editorial in the Chicago Tribune. There are times when these guys really get it right.

I should mention that schadenfreude neither is noble nor praiseworthy, Quite the reverse, but it can be a guilty pleasure, and I’ll try not to gloat.

Chicago Tribune Editorial
How not to fix the immigration system
Harsh laws create trouble for Alabama, Arizona

December 29, 2011

Crops don’t get picked. Chickens don’t get plucked. Kids don’t go to school. And the line at the Department of Motor Vehicles is really, really slow. Those are among the unintended consequences of Alabama’s overreaching immigration law.

The law, which took effect in September, is even more punitive than Arizona’s SB 1070, most of which was blocked by a federal court after the Obama administration sued. Alabama and a handful of other copycat states will have a rooting interest next summer, as the U.S. Supreme Court hears that case against the backdrop of an intensifying presidential race.

Challenges also are pending against similar laws in Georgia, Utah and South Carolina.

Arizonans are rethinking their harsh stance. Immigrant-friendly governments, companies and individuals boycotted the state, costing it hundreds of millions in tourism, conventions and sales. More than 100,000 Hispanics left the state — exactly as the law intended — but businesses weren’t happy to see them go. Besides being a source of cheap, reliable labor, immigrants are consumers too.

With another round of restrictive measures teed up in the legislature earlier this year, Arizona’s business leaders called for a timeout. The bills, which would have denied birth certificates to children of undocumented parents and banned illegal immigrants from driving, among other things, were defeated.

In November, Senate President Russell Pearce, the mouthpiece of the anti-immigrant movement, became the first state legislator in Arizona history to be removed from office via a recall election. He was replaced by a candidate who favors a more balanced approach to immigration reform.

Some Alabama leaders are having second thoughts too. Dubbed the “Juan Crow law,” their measure is meant to intimidate immigrants into fleeing the state by, for example, requiring schools to check the residency status of students and their parents — even though the Supreme Court has long held that children are entitled to a public education regardless of their immigration status. Fearful parents have responded by keeping their kids out of school.

A worker exodus has left farmers and poultry plants without enough help.

The law’s onerous demand that documentation be produced for “any transaction between a person and the state” has turned out to be a maddening inconvenience for everyone who needs a driver’s license, auto tags or a business license.

Some local governments are unsure whether the law prohibits them from providing utilities or trash pickup to undocumented families. A judge already has blocked the state from requiring proof of legal residency on annual registrations for mobile homes.

Meanwhile, measures meant to scare away illegal immigrants could end up scaring away business investors too. In November, a German executive visiting Tuscaloosa’s Mercedes plant was pulled over because his rental car was missing a tag; he was arrested when he couldn’t provide proof of residency. Oops.

This prompted the St. Louis Post-Dispatch to invite Mercedes to move its plant to Missouri. “We are the Show-Me State, not the ‘Show me your papers’ state,’ its editorial page quipped. The paper admitted Missouri’s legislature has been hostile to immigrants, “but not as hostile as Alabama’s or Arizona’s.”

Many Alabama lawmakers recognize they need to change the law. That won’t be easy after all the chest-thumping that went into passing it.

The lesson here is that the one-dimensional, enforcement-only approach doesn’t address the root of illegal immigration: Businesses need workers. When the system fails to provide enough visas to fill the available jobs, employers and workers find ways around it. Those needs should drive our immigration policy. Instead, it has been driven by politics.

Aware that the hard-line approach doesn’t sit well with businesses or Latino voters, some of the presidential candidates have dared to temper the debate. Texas Gov. Rick Perry defended his state’s program to extend in-state tuition to undocumented students. Newt Gingrich called for “humane” immigration policies, including a path to legalization for longtime undocumented workers who have otherwise been law-abiding. Both tacked right again after being booed by immigration hawks.

Two recent polls of likely Iowa caucus-goers, though, gave Gingrich and Perry the highest marks in the Republican field on immigration.

Maybe we’re getting our hopes up, but Americans seem to be inching toward a civil discussion on immigration. That would be a big step toward a workable solution.

Funny how humane treatment of the men, women and children living in their state, meant nothing to the politicians and voters in Alabama, Arizona and the other states where bigoted politicians win elections by being more cruelly racist than the other guy. Beating down, not only on helpless immigrants, but on their innocent children, was just fine. No human empathy offered. Just lots of lies and phony rationalizations about immigrants taking jobs, committing crimes and voting illegally.

Ah, but when money and consumers predictably began to flow out of the state, then suddenly, seeing all those tan-skinned kids and their parents having their lives destroyed, wasn’t quite as much fun.

A nation is known by the way it treats its least powerful. That goes for state governments, too.

I award 3 un-American symbols to all you politicians and sheriffs who sold your souls and appealed to the baser instincts of the slack-jawed members of your constituencies, in order to win an election. And you voters who cheered them on can share in the award.

Shame on you. Racist lesson learned?

Rodger Malcolm Mitchell

Unpatriotic flagUnpatriotic flagUnpatriotic flag

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports