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Congress could put a stop to this by simple legislation. By law it could define the place where an alien mother gives birth to a baby inside the US as foreign territory of the mother’s nationality, at the time of birth.

Transferring our territory to a foreign government, even temporarily, could have unintended consequences. A much better solution, in my view, would simply be to legislate that alien parents who have children who are U.S. citizens are not themselves entitled to any special treatment on that account. They can receive no extra benefits not available to other aliens, and if they're here illegally, they can still be deported, though they'll still have the legal right to take their child with them.

Republicans are really missing the boat on this one. In the last election the Republicans had the largest percentage of the Mexican vote they ever captured. What the political gurus in the GOP do not realize is that those votes they received represent the Mexicans that feel the same way about protecting our border. They want the border closed. These are the same Mexicans that by a vast majority do not want bilingual education in our schools. They have bought into the American Dream and want to protect it.

As you mentioned the Bracero Program worked. We need to bring it back. We also need to crack down on the employeers of illegal aliens. To do this we need a social security card that can not be forged and has your picture and fingerprint on it. With our new technology we can do this. Heavy fines must be levied on the emplyeer that hires illegals. The illegals that are in this country should have the opprotunity to join the bracero program, and work in this country legally. If they have families in this country that are illegal the family must go home but the worker will be allowed to stay. Any illegal that has committed a crime will be repatriated to his country and if he enters this country again will face an automatic jail sentence. We must have a massive education program that will reach the Mexican population in Mexico that if they join the bracero program they are welcome to work in this country. This would put political pressure within Mexico to cooperate with the United States in sealing the border from the Mexican side also.

A worker that has been in this country for seven years should then be given the opprotunity to apply for citizenship and become part of the American Dream.

PS
I know of which I speak. I am a guero (white boy)
I was raised on the border and my wife is from across the river. We speak English and Spanish in our home, mostly English. She came here legally and has post graduate degrees from Universties here in Texas. I wish my English was as good as hers. She is part of the American Dream and votes Republican most the time. I am working on that ;).

While we’re solving the problems of closing the borders, we should deal with the problem of “anchor babies.” Alien women close to giving birth are risking their lives and their children by trying to sneak into the US to give birth here. The baby is then an American citizen, which gives preference to the parents seeking legal status.

You're only half right. Under current law (and I won't debate with you whether that's constitutionally required), children of illegal aliens are citizens, but it is no longer true that these "anchor babies" give preference to their parents in seeking legal status. That was the law from 1965 to 1995, but under an amendment to the statute, citizens under 18 cannot sponsor relatives for family unification. So the illegal parents can give the child up for adoption, or they can take the child with them when they are deported (in which case the kid can come back to the U.S. at age 18).