A big problem is that keeping all illegals in the same status, whether it’s amnesty, limbo, or deportation, removes incentives for them to obey our laws and assimilate. We need some incentive system for illegals so that desirable behavior will earn immigration status and criminal behavior will lead to enforced deportation. Better enforcement is needed for incentives to be meaningful.

Regarding the difference between US and Mexican economies and the EU situation–I think that the EU is actually in a similar cirumstance with its current plans for expansion.

Bulgaria, Macedonia, and Turkey are all at different stages of ascention talks, but if you look at the Human Development index, Mexico ranks above all of those countries.

Turkey is probably the best parallel due to its size–it is also the most politically sensitive. Mexico outperforms Turkey significantly in a number of key indicators of economic health (literacy, infant mortality, life expectancy, etc…).

I think that the difference boils down to politics. The richer countries of the EU have given significant amounts of aid to poorer countries on the condition that they develop market-based economies, democratic reforms, strong social programs, and a respect for civil liberties.

It has not necessarily been pretty, but I think an argument can be made that labor mobility has been a significant factor in the EU’s prosperity.

One of the ways to stop illegal immigration is to make it more attractive for folks to stay in Mexico. This is just another reason to phase out farm subsidies.

The EU labor market solution wouldn’t work here beause of the substantial difference in the economies of the US and Mexico.