Is Arizona Law Sending Business South?

Strict State Immigrant Law Places Burden On The Business Not To Hire Illegals

(CBS)  It's nearly midnight in downtown Phoenix. Mexican immigrants, some legal, some not, are heading for the border - any border - outside of Arizona.

"Every day, every day, every single day there's a new family with the same story," a bus-station employee told CBS News correspondent Ben Tracy.

They can't find work, thanks to a new Arizona immigration law - one of the toughest in the nation.

"The No. 1 lure for illegal aliens in this country is jobs," Arizona state Rep. Russell Pearce said.

So Pearce wrote a law saying if a business knowingly hires an illegal immigrant, they won't simply be fined - they'll be shut down.

"If you shut down the rides and turn off the lights the crowds will go home," Pearce said.

And they are: Entire apartment buildings are empty, students are disappearing from schools, stores that catered to Hispanic families … closed.

You can also see it at a work center in Phoenix where they used to have more than 100 people every day looking for work. Now it's less than half that.

But it's not just the law, it's also protestors who are scaring away business.

"They call us racists for wanting our laws enforced," one protester said. "We're not against immigrants ... legal immigrants"

"Are you in the country legally?" Tracy asked a worker.

"I don't want to answer that question," he replied

But it's a question states are asking because federal immigration reform failed. Fifteen states are proposing laws with penalties for employers similar to the one in Arizona.

But Jason Levecke, who owns more than 50 burger joints in Arizona, says the new law is an economy killer - turning business owners into immigration agents.

"Nobody is defending illegal immigration," Levecke said. "We have to fix the problem but a state can't do it without destroying its economy."

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Read more from Ben Tracy at Couric & Co. Blog: Exploring Immigration's Fault Line

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Levecke hired two people and spent a half million dollars to ensure his workers are legal.

And he's put wraps on plans to open 40 new stores in the state saying it is too risky.

"Who's going to invest in a state where you can lose your business license?" he asked.

One in 10 workers in Arizona is an illegal immigrant. A recent study showed the state's economy would take an 8 percent annual hit if they were removed from the labor force.

"Would you normally have more workers out here right now?" Tracy asked.

"Uh, we would, yes we would," Sheridan Bailey said.

Bailey says the new law is even scaring away legal immigrant workers from his iron-fitting business.

"We will wind up out-sourcing part of our fabrication work to Mexico, where the people are able to work for us," Bailey said.

So as yet another bus heads out of Arizona, the question is how to make the law work without sending the state's economy south.

[jdcampbell6]

The loss of business that relied on illegal labor should never have been established in the first place. The loss of these businesses that created revenues that were not needed will not affect the Arizona economy overall. You don''t base an economy on meaningless expansion, you base it on the needs of that community. Its called irresponsible growth.

[ossawo]

While researching my family history I ran across The Chinese Exclusion Act, passed May 6, 1882. The article can be found at Wikipedia, the free encyclopedia. It put a freeze on Chinese entering the US.

A law similar law should be written for present day and days to come.

[kenbrane]

Am I suppose to pity the poor businesses that took an unfair advantage over their competition by hiring illegal aliens?

Am I suppose to pity the poor businesses whose illegal workers received public benefits, such as food stamps, education, and health services paid by American citizens to in actuality subside their business?

Am I suppose to pity the poor businesses who helped burden our police departments?

Am I suppose to pity the poor businesses who put downward pressure on working America''s wages?

Am I suppose to pity the poor businesses who put an economic burden on our country that is more costly than the Iraq War?

No pity from me!!!

[sharncedar]

Cool i''ll move to Arizona and do some high-tech business that doesn''t require slave labor. What kind of economy is based on slave labor from starving workers living 20 to a room? What kind of "businesses" use those kind of employees? Lousy, dirty, low revenue businesses, thats what kind.

Good businesses, by definition, have high-paid employees or learn to automate their production.

[underdogus]

So as yet another bus heads out of Arizona, the question is how to make the law work without sending the state''s economy south....he,he,he,no good racist ARIZONA!!he,he,he

[pollroller1]

I am a retired small business owner and I have never used illegal immigrants. Some of my employes have been with me for 30 years or more. I pay them good and I pay for everyone''s health insurance. My grandfather started our business and now I have three grand kids working there. We are a small business and have about 30 employees. We are able to compete just fine with our legal work force.

[underdogus]

pollroller1 ..he,he,keep an eye on gas prices...the great depression may be round the corner.....

[idahomom2]

This story PROVES we don''t have to "round up" the millions of illegals and deport them. Simply enforce the immigration laws we already have on a federal level and the illegals will head home themselves! And that costs us nothing....unlike having them here!

[darnedsocks]

THIS IS GREAT! GO ARIZONA! DEFENDERS OF U.S. CITIZENS! NOW MAYBE HIGH SCHOOL STUDENTS, WHO ARE AMERICAN CITIZENS AND OTHERS WHO NEED A JOB TO GET A BIT OF EXTRA CASH INTO THE HOUSEHOLD CAN GET A JOB AT A BURGER JOINT...AND THEY''LL GET THE ORDER RIGHT! LOL

[darnedsocks]

The loss of business that relied on illegal labor should never have been established in the first place. The loss of these businesses that created revenues that were not needed will not affect the Arizona economy overall. You don''''t base an economy on meaningless expansion, you base it on the needs of that community.


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Posted by JDCampbell6 at 08:13 PM : Apr 10, 2008

[darnedsocks]

Why doesn''t that business owner in the video clip HIRE AMERICANS? How about some AFRICAN AMERICANS WHO NEED AND WANT JOBS?

[darnedsocks]

THE QUALITY OF LIFE IS GOING TO GREATLY INCREASE IN ARIZONA!

[darnedsocks]

THIS IS A GREAT STORY AND A GREAT SERIES! IMMIGRATION NATION! KEEP UP THE GOOD WORK CBS NEWS!

[brianbwb-2009]

"Who''s going to invest in a state where you can lose your business license?" he asked.

What good is having a business that doesn''t contribute to the employment and wage earning opportunities of legal Americans?

If you don''t provide jobs for legal Americans, and then use fancy schemes to evade and avoid taxes, then you are of no use to that state.

In an older day, the phrase "carry your own weight" was used by "conservatives" to advocate the elimination of public assistance. Businesses should be held to the same standard, if you bring no benefit to the state you are in, then you do not carry your own weight.

[wango2007-2009]

"Levecke hired two people and spent a half million dollars to ensure his workers are legal. "

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Ya, sure. If business people have this kind of money to throw around, why don''t they pay a living wage to people here legally? The answer is, business people have been making huge profits off poor, uneducated, non-English speaking workers, and some business people will say anything to keep people working at near-slave wages.

A business that exploits workers deserves to fail, so it''s a good thing the Arizona law is weeding them out.

This story makes me want to spend money in Arizona. The state needs to be rewarded for doing the right thing about illegals.

[shanev137]

Who cares if it kills the economy.

As long as I can feel morally better about myself by trouncing on, and making others suffer, I''m OK with killing the economy and possibly losing my job.

Go ahead and take all my social security money that I''ve paid into the system and build bigger and better jails to house all these bad people.

Even though I''ll be broke and my currency is almost worthless, and I''ll be living in a cardboard box on a street corner somewhere....I''ll still have that satisfaction when I drink my ripple that God is on my side and his justice prevailed over all these bad people.

[brianbwb-2009]

Posted by shanev137

Your post has a double edge to it.

Conversely, what good is a growing economy that you are not a part of? What would you say if you were one of the millions that were thrown out of the economy when the auto plants, the steel mills, the coal mines, the bars and pubs that used to service them closed?

What good would an economy be to you if all the participants and beneficiaries were non Americans, who work cheap, as they also bring third world living standards with them, and so make you expendable?

[grammawhamma]

Ahhhhh...thank you Arizona! Only 49 more states left to follow your lead. WTG!

[underdogus]

And they are: Entire apartment buildings are empty, students are disappearing from schools, stores that catered to Hispanic families %u2026 closed. he,he, read it n weep ...The great depression will look like a small blip compare to the economic collapse the US is about to SUFFER..he,he

[underdogus]

as oil marches toward 115$ a barrel ..YIKES!!! he,he,

[underdogus]

and the drumbeats of WAR with IRAN are surely getting closer!! he,he

[underdogus]

we are simply waiting for the jugments to come, it would be stupid to think a NATION that despises GOD will have PEACE and PROSPERITY........

[brianbwb-2009]

Posted by terrorislamh

So Lars, the Belgian death worshiper is making pronouncements for American economic problems? Lars loves the fact that US soldiers are killing and dying in a war for no reason, and then presumes to care at all about America, calling for mass roundups like his hero Adolf did in the 30s.

At least the death worshiper is consistent, I''ll give it that much credit.

[underdogus]

america is money ahead with out them,,,

good riddance,,,
Posted by terrorislamh
As oil prices climb, this impedes American growth, making the DOLLAR less attractive,watch your head

[underdogus]

The UNITED STATES goverment is currently running a budget defecit of 1.8 BILLION a day. too much defecit will create a weaker American dollar and cripple the US ECONOMY..ARIZONA watch your head.....

[underdogus]

when a Nation does that which is right and good in the sight of God, then God blesses that Nation. When they do evil, then God curses the people with storms, tornados, earthquakes,droughts,floods,wars,terrorism, high taxes,unemployment,and so on......

[underdogus]

Bush warn IRAN saying the Islamic Republic "has a choice to make"... surely the drums of WAR are getting closer...hmmm?...oil prices hit a new record 110.$ a barrel= high taxes...hmm?....

[century21az]

Why don%u2019t you identify the franchise that Jason Levecke owns? I%u2019ll do it for you. It Carls Jr.

[underdogus]

TEN thousand nuclear heads and the most technologically trained army in the world will not be able to stop America''s economic disaster. Your dreams,your hopes, your energies and aspirations will mingle with the smoke that will rise up from the utter destruction of BABYLON........

[pensacola88]

This tough state law in Arizon will haunt John McCain and sink his hopes for a win in November.

It is clear that purist mentality was behind the statute and consumers across the nation are crossing Arizona off their list of states to do any buisiness with.

It was wishful to believe that Arizona would receive any benefit from this law.

Arizona - an angry white man''s paradise!!!

[drivelphobe]

Arizona is leading the way and it''s about time. Enforcing laws? Wow, what a novel idea! Any businesses that had to rely on the presence of illegals deserve what they get. The taxpayers and citizens are the winners here and it''s long overdue.

Let''s hope the Los Angeles Mayor, Antonio VillalaRaza and his open-border City Council get this message loud and clear. This sanctuary city mentality and complete disrespect for law enforcement has to end. There are big changes ahead and maybe English can once again be heard in the street of LA. Legal immigrants are welcome. Illegals get out and now.

[underdogus]

ARIZONA is doomed.........

[drivelphobe]

Pensacola88...

Consumers are going to start crossing any business related to illegals off their lists, not Arizona. Arizona is a glowing beacon for this country to follow. American citizens should go out of their way to do business in Arizona, where made in America means something. You got it all wrong Pensacola.

Arizona = Angry taxpaying citizens'' paradise.

[drivelphobe]

underdogus...

Arizona is doomed to justice for the citizenry. This state will blossom and lead the way for other states to just enforce the laws and listen to the "We the People" instead of "We the parasitic, entitlement
seeking law-breakers".

Arizona is a god-send and thank you Sheriff Joe.

[pensacola88]

The idea and consumers are going to stop doing buisiness with states using illegal aliens for labor is a very wishful and naive idea.

On the contrary, consumers don''t want to pay double for their fruit.

The last time I checked, homes for sale that didn''t use aliens to repair or contruct them costed more and weren''t selling, because the sales price was inflated.

Arizona is being a beacon to the nation for a couple of things, naive thinking, wishful thinking, and arcane purist ideas about white dominance. Pride wont feed a family anywhere. Arizona will teach the rest of the country "How NOT to resolve a social problem".

Arizona may purge illegal aliens, but they will also send many legal ones away citing hatred as the reason. The whole country can see it and it is so plain and obvious.

[lochlan-2009]

""The No. 1 lure for illegal aliens in this country is jobs," Arizona state Rep. Russell Pearce said.

Congratulations Rep. Russell Pearce!!! That is exactly the way you do it. If only more states will follow your lead. We only need to get rid of NAFTA, and Americans can start to build this country back to the great nation it used to be.

[lorinkundert]

Hats off to Arizona, if only other States would follow suit and force those illegal alien criminals back home, this country would be one giant step closer to stability.

[rudy654-2009]

You racists will drive your economy into the ground, and I say GOOOD! But you fat azzs can stay here on the computer and pretend to be worth something.

[rudy654-2009]

I totally love this article. This is great news. I hope this country is successful in getting rid of the illegals. Then I want to see them scream and cry for their vegetables, fruit, etc. When the grocery stores start closing and their restaurants remain empty for lack of workers. YEAH!

[rudy654-2009]

Arizona may purge illegal aliens, but they will also send many legal ones away citing hatred as the reason. The whole country can see it and it is so plain and obvious.
Posted by Pensacola88 at 09:48 AM

To tell you the truth, this is necessary because people need to see and feel the consequences of hate.

[underdogus]

consequences of hate. Posted by rudy654 ...yes!! ARIZONA IS DOOMED!!!

[rudy654-2009]

good riddance,
Posted by terrorislamh at 07:38 AM

What many will say to you one day.

[underdogus]

all you have to do is read today''s headlines!!..."farmers crossing the border to Mexico".."middle class feeling the financial squeeze".."march retails sales hit 13 year low"..."gas and oil prices hit new records"..."Frontier Airlines files for bankruptcy"

[rudy654-2009]

consequences of hate. Posted by rudy654 ...yes!! ARIZONA IS DOOMED!!!
Posted by underdogus at 10:25 AM

Yes it is. For centuries Mexicans have crossed that border to work in that state. Legal or not, they were the foundation of that area''s workforce. Most white people in Arizona are nothing but a bunch of old faart retirees who have moved there and become upset about the Mexicans. Well, people may soon want to kick the retirees out of their state for manipulating their businesses in such a way. You may soon see an exodus of RVs. LOL!

[cj382]

Get both sides of the story - not just business''s.
In LA CA 88 emergency rooms closed, #1 gang city in America, Diane Feinsteins report is 80% of gangs illegal, graffiti everywhere, taking jobs and lowering wages for those in construction and really any labor job,
Total annual cost of illegals on taxpayers exceeds $1 billion LA County Supervisor Michael D. Antonovich has announced that a new report shows illegal aliens and their families in Los Angeles County collected over $35 million in welfare and food stamp allocations in July.
In the report, illegals are said to have collected nearly $20 million in welfare assistance for July 2007 and an additional $15 million in monthly food stamp allocations for an estimated annual cost of $440 million. %u201CIllegal immigration continues to have a devastating impact on Los Angeles County taxpayers,%u201Dsaid Antonovich. %u201CIn addition to $220 million for public safety and $400 million for healthcare, the $440 million in welfare allocations bring the total cost to County taxpayers that exceeds $1 billion a year -- this does not include the skyrocketing cost of education.%u201D
Many communities in LA County have populations where 80% of the people don''t speak English. Get both sides of the story - remember you might just get what you ask for.

[nottellin1]

totally love this article. This is great news. I hope this country is successful in getting rid of the illegals. Then I want to see them scream and cry for their vegetables, fruit, etc. When the grocery stores start closing and their restaurants remain empty for lack of workers. YEAH!


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Posted by rudy654 at 10:18 AM : Apr 11, 2008

Oh Rudy, you need to go back into the hole you crawled out of. Didn''t you know, everyone can grow their own vegatables if it ever got to the point that we were "crying for them". Your comments seem to be less and less meaningful as your cause goes right down the drain.

[rudy654-2009]

Oh Rudy, you need to go back into the hole you crawled out of. Didn''''t you know, everyone can grow their own vegatables if it ever got to the point that we were "crying for them". Your comments seem to be less and less meaningful as your cause goes right down the drain.
Posted by nottellin1 at 05:00 PM

Grow your own vegetables. If you can get your fat azz out of in front of your computer to do it. I spelled out exactly what your racism is going to cost you, and it aint only vegetables sweetheart. You racists will end up killing each other in the end.

[rudy654-2009]

Many communities in LA County have populations where 80% of the people don''''t speak English. Get both sides of the story - remember you might just get what you ask for.
Posted by CJ382 at 01:58 PM

Is there any way to get rid of you racist rednecks? Go fry something and eat it.

[usapatriot70]

Why did Arizona have to go so far with this law? Because the laws that are on the books are not enforced. If these laws were enforced then there would be no need for states to have to pass laws and enforce them. If the use of illegals is what it takes to keep a business afloat then maybe it shouldn''t stay in business. The living wage argument is a whole other story (what is a living wage anyways? Is it what the unions have managed to push their members wages up to? before you answer that look at what has happened in the steel industry and the automotive industry. Is that the living wage an industry that barely exists.).Illegals do nothing for us but cost money what could be done with the tax money that is spent feeding and providing medical care as well as educating the children of these illegals. As far as this being a race issue that is what every thing gets twisted into and its not its legal versus illegal so drop the race bating and while I am going after posters if you can''t string a post together don''t make multiple post minutes apart.

[besscannon-2009]

If enough states are successful with this, maybe it will force employers to pay a living wage and, thus, attract plenty of legal citizens to fill the positions. We can''t keep compounding this felony that is helping to ruin our economy and standard of living. PAY ATTENTION TO US LEGAL AMERICANS AND STOP MOLICODDLING THE ILLEGALS!! This is a big part of the CHANGE we need to get our country back. If it keeps going as it has been, our sovernity is going to be lost to this large influx of illegals.