ANALYSIS: Arizona's migration law has economic, human costs

By Silvia Ayuso  Jul 28, 2010, 10:45 GMT

Phoenix, Arizona - A Day Without a Mexican, director Sergio Arau's 2004 film satire, imagined the chaos of a day when all the Mexican immigrants, who carry out little-noticed but vital tasks that maintain orderly life, suddenly disappeared from California.

At the time, no one even suspected that another US state might implement a migration law - such as SB 1070 in Arizona - that could provoke a major exodus of immigrants, both legal and illegal, at a financial cost that is difficult to project.

The immigrant community, at least 7 per cent of the Arizona population, contributes to the area's economy often by doing jobs that few native-born US citizens are willing to fill.

Opponents have described the legislation as discriminatory, because it calls for law-enforcement officers to check the migration status of anyone in the presence of reasonable suspicions - which some fear may be race or accent - that they might be in the country illegally.

Such fears have led to a wave of protest that has gone beyond politics to the economy, a more vulnerable target in hard times.

Cities including Boston, Los Angeles, San Francisco and Seattle have already started to implement a boycott against Arizona.

In response, supporters of the Arizona law have proposed a 'buycott,' such as travelling to Arizona for bulk shopping, though the numbers have not yet been noticeable.

A spokesman for the Arizona Hotel and Lodging Association told the Phoenix-based Arizona Republic, the state's largest newspaper, that at least 40 conferences and large meetings previously scheduled to be held in the state had been cancelled, taking away at least 12 million dollars in direct revenue for the hospitality sector.

That cost does not count the impact restaurants, shops, car-rental outlets and other businesses, the spokesman said.

'We had an incredibly strong first quarter of 2010,' the spokesman said. 'And then SB 1070 hit and knocked us back two steps.'

Another expert in the sector warned that major companies could consider postponing investment in state, for fear of the negative publicity that they might reap, or leaving Arizona altogether.

'Businesses don't want to get caught in the middle of this,' the expert told the Arizona Republic.

Supporters of the law argue that the possible departure of illegal immigrants and the tough penalties that the law imposes employers who hire them would make room for locals who cannot currently compete with the cheap labour flowing across the border, supporters say.

Supporters argue that state and local governments will save money on health care and education, because hospitals will not have to provide as much free medical treatment and public schools will have fewer children to educate, especially those needing help with English and other expensive, special services.