The Race to the Bottom

Immigration is fast becoming the hot-button issue around the world.  Here in the US, we are building a huge fence along the border with our neighbors to the South. France and England have had to deal with huge numbers of immigrants over the last 10 years.

And now come the Swiss, with their reputation for tasty chocolate and obnoxious time-pieces, and do this:

There have been some concerns about the Swiss in the past; all of those numbered bank accounts that swelled up in the early 1940's come to mind immediately.  And to go along with the poster, lawmakers such as Dr Ulrich Schlüer are working on instituting draconian laws targetting immigrants; one proposed law would deport the entire family of any immigrant convicted of a crime.   Another proposed law would ban the building of minarets in Switzerland.

These laws seem to be ideologically closer to 1930's Germany than to the modern West; in fact, the family responsibility for criminal acts is very similar to the Nazi practice of Sippenhaft - kin liability.  When the EU's special rapporteur on racism, Doudou Diène, voiced his concerns about the new laws, Dr. Schlüer replied that perhaps Diène should focus on problems in his native Senegal and leave the Swiss the fuck alone (slight paraphrasing).  

The Discussion Point(s):  Given the current realities of international migration and immigration, how can a government be responsible to its citizens, and protect the interests of the people currently living there, without crossing the line into this sort of xenophobia and racism?  Where is that line?