Amnesty for Illegal Immigrants Has Economic Benefits

Washington’s last amnesty for illegal workers led to higher wages and economic growth
Honorato and family in his Florida groceryPhotograph by Emiliano Granado for Bloomberg Businessweek

Alejandrino Honorato’s introduction to America began with a smuggler who led him across the Rio Grande into the Texas desert. Eventually he was guided to a North Carolina field, where he paid for his passage by picking tobacco. Living illegally in a labor camp, Honorato didn’t know politicians in Washington were deciding his future. It was 1986, and Congress was weighing an amnesty plan to legalize millions of undocumented workers. Unemployment was 7 percent. Some lawmakers warned that a flood of newly legal workers would strain hospitals and schools and overwhelm the economy, driving wages down. “Are we going to cause havoc?” asked Representative Bill McCollum, a Florida Republican, as the House prepared to vote.

The doomsday predictions proved wrong. The bill became law, and almost 3 million illegal immigrants, including Honorato, were granted amnesty. He settled in Apopka, Fla., where he found work in a greenhouse, bought a home, and raised a family. In 1998 he and his brother used their savings to buy a $15,000 tortilla-making machine and opened their first restaurant. Today he is a U.S. citizen and owns two restaurants and a small grocery in central Florida that employ about 60 people. “I’ve helped a lot of people work,” he says through a translator. “If people were legalized, they’d have a chance to open businesses like me.”