Tuesday, October 5, 2010

Bad Example

Here's a comment I tried to post at EconLog:

I mostly liked your EconTalk podcast about immigration, and thought most of your arguments for open immigration were pretty good. But your thought experiment where a person goes to Haiti to do humanitarian work only to discover he can't return to the U.S. is, I think, off. What I think you're trying to show is that only country of birth--which is a matter of luck --separates poor Haitians from comparatively well off Americans. The randomness is unfair! Well, the listener certainly gets a sense of outrage, but, I think, for the wrong reasons.

I think the biggest source of outrage in the example is not the randomness of allocation to countries, but the random government rule change mid-trip. The humanitarian was relying on the fact that he would be able to return to the U.S. The reaction would be much different if the humanitarian knew before he left that he could not return. I don't see how outrage over a sudden rule change helps your case for open immigration.

The hypothetical is also unsettling because the humanitarian had something that was taken away from him, as opposed to having had less to begin with. I'd feel bad for a billionaire that lost his fortune and had to make due with $100,000 a year, even though that income is actually quite good by most standards. But maybe that is parts of your point--that we should be just as outraged about the unseen consequences of immigration policy as the seen consequences in the hypothetical? Maybe we should lament missed opportunities as much as a loss? At least the humanitarian got to live in the U.S. for a while. But psychological, I don't think we do, which makes the U.S.'s arguably unduly-restrictive immigration policy at least more psychologically benign than your hypothetical.

Finally, your hypothetical misses the mark because the humanitarian is permanently and involuntarily relocated. I think people would find the idea of a person who lives in Portland, OR going on a business trip to New York, NY and then discovering that he can't return to Portland mid-trip troubling, even if he could take his family and friends with him. And by your account, New York is better than Portland. So I don't think this sense of unease has much to do with different standards of living. The average person is going to find this sort of involuntary, permanent relocation and disruption of life troubling, regardless of economic opportunity.

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