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Kamala/Trump Policy Discussion: Housing, Immigration, Tariffs
"Econ 102" with Noah Smith and Erik Torenberg
Penalties Deter Noncompliance
Imposing penalties on companies for hiring illegal immigrants effectively discourages such practices. By conducting audits similar to tax audits, authorities can verify the employment eligibility of workers. The potential fines for noncompliance create a deterring 'chilling effect,' ensuring that companies are motivated to comply with citizenship verification. This approach parallels tax reporting behaviors, where fear of audits incites accurate income reporting among individuals and businesses, minimizing the extent of tax evasion despite some occasional underreporting.
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