Realistic open borders

Sep 5 JDN 2459463

In an earlier post I lamented the tight restrictions on border crossings that prevail even between allied First World countries. (On a personal note, you’ll be happy to know that our visas have cleared and we are now moved into Edinburgh, cat and all, though we are still in temporary housing and our official biometric residence permits haven’t yet arrived.)

In this post I’d like to speculate on how we might get from our current regime to something more like open borders.

Obviously we can’t simply remove all border restrictions immediately. That would be a political non-starter, and even ethically or economically it wouldn’t make very much sense. There are sensible reasons behind some of our border regulations—just not most of them.

Instead we would want to remove a few restrictions at a time, starting with the most onerous or ridiculous ones.

High on my list in the UK in particular would be the requirement that pets must fly as cargo. I literally can’t think of a good reason for this; it seems practically designed to cost travelers more money and traumatize as many pets as possible. If it’s intended to support airlines somehow, please simply subsidize airlines. (But really, why are you doing that? You should be taxing airlines because of their high carbon emissions. Subsidize boats and trains.) If it’s intended to somehow prevent the spread of rabies, it’s obviously unnecessary, since every pet moved to the UK already has to document a recent rabies vaccine. But this particular rule seems to be a quirk of the UK in particular, hence not very generalizable.

But here’s one that actually seems quite common: Financial requirements for visas. Even tourist visas in most countries cost money, in amounts that seem to vary according to some sort of occult ritual. I can see no sensible economic reason why a visa would be $130 in Vietnam but only $20 in neighboring Cambodia, or why Kazakhstan can be visited for $25 but Azerbaijan costs $100, or why Myanmar costs only $30 but Bhutan will run you over $200.

Work visas are considerably more demanding still.

Financial requirements in the UK are especially onerous; you have to make above a certain salary and have a certain amount of savings in the bank, based on your family size. This was no problem for me personally, but it damn well shouldn’t be; I have a PhD in economics. My salary is now twice what it was as a grad student, and honestly that’s a good deal less than I was hoping for (and would have gotten on the tenure track at an R1 university).

All the countries in the Schengen Area have their own requirements for “financial subsistence” for visa applications, ranging from a trivial €3 in Hungary (not per day, just total; why do they even bother?) or manageable €14 per day in Latvia, through the more demanding amounts of €45 per day in Germany and Italy, to €92 per day in Switzerland and Liechtenstein, all the way up to the utterly unreasonable €120 per day in France. That would be €43,800 per year, or $51,700. Apparently you must be at least middle class to enter France.

Canada has a similar requirement known as “proof of funds”, but it’s considerably more reasonable, since you can substitute proof of employment and there are no wage minimums for such employment. Even if you don’t already have a job you can still apply and the minimum requirement is actually lower than the poverty line in Canada.

The United States doesn’t require financial requirements for most visas, but it does have a $160 visa fee. And the H1-B visa in particular (the nearest equivalent to the Skilled Worker visa I’ve got in the UK) requires that your wage or salary be at least the “prevailing wage” in your industry—meaning it is nearly impossible for a company to save money by hiring people on H1-B visas and hence they have very little incentive to hire H1-B workers. If you are of above-average talent and being paid only average wages, I guess they can save some money that way. But this is not how trade is supposed to work—nobody requires that you pay US prices for goods shipped from China, and if they did, nobody would ever buy anything from China. This is blatant, naked protectionism—but we’re apparently okay with it as long as it’s trade in labor instead of goods.

I wasn’t able to quickly find whether there are similar financial requirements in other countries. Perhaps there aren’t; these are the countries most people actually want to move to anyway. Permanent migration is overwhelminginly toward OECD (read: First World) countries, and is actually helping us sustain our populations in the face of low birth rates.

I must admit, I can see some fiscal benefits for a country not allowing poor people in, but this practice raises some very deep ethical problems: What right do we have to do this?

If someone is born poor in Laredo, Texas, we take responsibility for them as a US citizen. Maybe we don’t treat them particularly well (that is Texas, after all), but we do give them access to certain basic services, such as emergency services, Medicaid, TANF and SNAP. They are allowed to vote, own property, and even hold office in the United States. But if that same person were born in Nuevo Laredo, Tamaulipas—literally less than a mile away, right across the river—they would receive none of these benefits. They would not even be allowed to cross the river without a passport and a visa.

In some ways the contrast is even more dire if we consider a more liberal US state. A poor person born in Chula Vista, California has access to the full array of California services; Medi-Cal is honestly something close to a single-payer healthcare system, though the full morass of privatized US healthcare is layered on top of us. Then there is CalWORKS, CalFresh, and so on. But the same person born in Tijuana, Baja California would get none of these benefits.

They could be the same person. They could look the same and have essentially the same culture—even the same language, given how many Californians speak Spanish and how many Mexicans speak English. But if they were born on the other side of a river (in Texas) or even an arbitrary line (in California), we treat them completely differently. And then to add insult to injury, we won’t even let them across, not in spite, but because of how poor and desperate they are. If they were rich and educated, we’d let them come across—but then why would they need to?

“Give me your tired, your poor, your huddled masses yearning to breathe free”?

Some restrictions may apply.

Economists talk often of “trade barriers”, but in real terms we have basically removed all trade barriers in goods. Yes, there are still some small tariffs, and the occasional quota here and there—and these should go away too, especially the quotas, because they don’t even raise revenue—but in general we have an extremely globalized economy in terms of goods. The same complex product, like a car or a smartphone, is often made of parts from a dozen countries.

But when it comes to labor, we are still living in a protectionist world. Crossing borders to work is difficult, time-consuming, and above all, expensive. This dramatically reduces opportunities for workers to move where their labor is most valued—which hurts not only them, but also anyone who would employ them or buy products made by them. The poorest people are those who stand to gain the most from crossing borders, and they are precisely the ones that we work hardest to forbid.

So let’s start with that, shall we? We can keep all this nonsense about passports, visas, background checks, and customs inspections. It’s probably all unnecessary and wasteful and unfair, but politically it’s clearly too popular to remove. Let’s just remove this: No more financial requirements or fees for work visas. If you want to come to another country to work, you have to go through an application and all that; fine. But you shouldn’t have to prove you aren’t poor. Poor people have just as much right to live here as anybody else—and if we let them do so, they’d be a lot less poor.

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