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What if the country in question decides to let them in, but without the proper documents, with the implicit goal of getting their labor for cheap? I think the principle of POSIWID applies here (the purpose of a system is what it does). In other words, the system is/was working as intended, and illegal immigration was desired.
This is such an important concept for people to understand. The system was functioning as intended, for better or worse. There are myriad benefits to keeping people in fear, from financial to behavioral. It's part of the reason why the US is so resistant to the idea of decoupling healthcare from employment, at least until after you reach retirement age. Productivity, baby!!
Also, thank you for introducing me to the idea of POSIWID. I'm going to get a lot of mileage out of that.
I think this is more agreeing than contradictory. If more immigration is desirable, then expand legal immigration.
As you say, a system built around exploiting illegal workers is bad for everyone.