Personally, I think we complicate the whole illegal immigrant thing too much - probabaly because immigrating legally is an enourmous undertaking, and just getting temporary work visas isn't much easier. I favor a two-step solution.
1) If an illegal immigrant is found, the authorities take him to an immigration office, sit them down, and fill out all the paperwork to make him legal. Slap a small fine on them for not doing it right the first time, then cut them loose.
2) Make legal immigration simple. Basically a 'walk up to the border, fill out the paperwork, here you go' affair.
That has GOT to be much cheaper an option that our current policies, gives the immigrants legal protection from exploitation, gives us a real way to keep track of the people coming in (right now if they come in illegally, obviously we have no idea what they are doing once they get here), allows us to hammer the people who would pay them less-than-minimum wage and otherwise be abusive employers... the list goes on.
And once we've made it that simple, finding an illegal means he's Up To Something, and we can focus law enforcement attention on that sort of illegal, rather than the current scattershot effect of investigating people who just want to earn a living...
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