https://issuesinsights.com/2025/03/17/the-moral-hazard-of-illegal-immigration/
The U.S. border was illicitly crossed fewer times last month than in any February in the country’s history. There were 28,654 encounters and apprehensions of illegals reported nationwide. For those who might see border security, and deportations, as cruel acts against the poor and hopeless who want only to escape to a land of plenty, we offer another way of looking at illegal immigration.
Because the February number is actually good news.
The phrase “moral hazard” comes to us from the insurance industry. It refers, says Law & Liberty, “to the possibility that insuring against costly outcomes actually increases the reckless behavior creating the need for insurance in the first place.”
We often hear about the moral hazard of foreign aid. As long as we send money to struggling nations, their “leaders” will never liberalize their economies and root out the corruption that wrecks their societies. They don’t have to deal with the consequences of their policies.
It takes no leap of logic to apply the tag to an open-border policy, much like the one the Biden administration oversaw for four years. When unfettered entry into the U.S. is a pressure release valve for countries where millions are mired in perpetual poverty, those nations’ leaders, who are more often than not grifters and authoritarians, have no incentive to free their economies and purge their governments of the mobsters and entrenched insiders whose misfeasance limits prosperity to only a select few.
