Effects Of Immigration On The Economy

1050 Words3 Pages
bulb-icon

Recommended: How immigration benefits america

The Effects of Immigration on The U.S. Economy In the United States today there are over 11 million immigrants. Immigration has always been a key factor in the growth of our country and its economy, however, some people such as researcher Jim Demint, argue that immigration has gone too far, and instead of helping our cause, immigrants are adding to our $17 trillion dollar debt. Demint explains immigrants are creating more tax for tax payers, reducing wages, soaking up benefits without being a U.S. citizen, creating less employment opportunities for natives, and imposing more costs on schools, hospitals, and other services (Demint). On the other hand, researchers suggest that immigration helps to expand our economy. Doug Bandow of Forbes …show more content…

There are many benefits immigration has created in the U.S. economy. Immigrants migrating to America create a larger work force and in turn reduce the equilibrium unemployment rate in the long run. Steven A. Camarota’s research findings explain that “the presence of immigrant workers (legal and illegal) in the labor market makes the U.S. economy (GDP) an estimated 11 percent larger ($1.6 trillion) each year (Camarota).” Immigrants most often come to America because they don’t have the opportunities to make money in their home country that they would have here. This makes immigrants more inelastic suppliers of labour. They have a higher motivation to work, are more flexible, and if less educated, work for lower wages. Well educated immigrants help expand our economy by creating new businesses. These new businesses create more jobs for Americans, increase productivity, generate an increase in expenditures, an increase in output, and a downward pressure on inflation. With this increase in real wealth and more job opportunities for Americans to earn money, people will spend more. The increase in productivity will shift the short run aggregate supply to right and the aggregate demand to the right as well. We may also see a shift to the right in long run aggregate supply. As these theories provide insight as to how immigration positively impacts our economy, there are also ways in which immigration is negatively impacting our

Show More
Related

  • Undocumented Immigration Essay

    1688 Words  | 4 Pages

    In the U. S today, the approximated population of undocumented immigrants stands at averagely 11 million. Therefore, this has created a hot debate in Congress about the action to take over the undocumented immigrants. Those opposed to illegal immigrants suggest that, their stay in the United States effects U.S citizens on the job market negatively . In addition, illegal immigrants are viewed in certain quarters as takers in the sense that illegal immigrants benefit more from public resources than the american-born citizens of the U.S. However, the reality is that immigrants contribute positively to the U.S economy and pay significantly into the system compared to what they send back home. In addition, the contributions associated with undocumented immigrants involve sustaining the solvency of the SSTF (Social Security Trust Fund). In this sense, the use of cost benefit analysis by those supporting immigration restrictions are unfounded and do not reflect the facts on the ground (Nadadur 1037). The opponents of undocumented immigrants believe that having more undocumented immigrants in the U.S is costly; however, there are no solid reasons to prove that undocumented immigrants are a burden to the treasury. Instead, the undocumented immigrants play an important role in boosting the economy and in particular by taking up jobs those citizens perceive as demeaning because the money they earn goes back to the economy through taxes resulting from consumer spending when they send money back home.

    Read More

  • Jo-Ann Pilardi's Immigration Problem Is About Us Not Them?

    1373 Words  | 3 Pages

    The other aspect is that illegal immigrants have positive effects in the U.S economy by decreasing consumer cost. Most of the illegal immigrants came to the U.S to fill the secondary labor market; therefore products and services become cheaper because illegal immigrants work for lower wages, thus providing a kind of subsidy to American consumers. Nadadur Ramanujan in his article “Illegal Immigrants” states that, “Because illegal immigrants serves to allow businesses to minimize their cost of production in the secondary sector, it positively impacts income of all native workers by decreasing

    Read More

  • Immigration: Important to the Success of America

    910 Words  | 2 Pages

    The United States of America has the largest foreign-born population in the world. With nearly thirteen percent of the total population being foreign-born, one may find it hard to imagine an immigrant-free country (U.S. Bureau of the Census). Immigration has been an integral part of the United States’ overall success and the country’s economy since it was established and without it, would have never been founded at all. Although there are some negative issues associated with immigration and many native-born Americans believe to be more of a problem than a solution, overall it actually has a positive effect. Immigrants in America, among other things, fill jobs where native-born Americans may not want to work or cannot work, they contribute to Social Services and Medicaid through taxes and they help provide the backbone of America, especially by working jobs that natives may have not even considered.

    Read More

  • Effects Of Immigration On The Economy

    2015 Words  | 5 Pages

    Illegal immigration has many diverse effects on the United States economy. Some people argue that the negative outweigh the positive, but there is no doubt that immigrants do carry a critical role.

    Read More

  • Immigrant Labor in the United States

    1273 Words  | 3 Pages

    First, immigrants come to the U.S. to work and bring valuable skills which help grow the economy despite the negative views surrounding their part in the U.S. economy. Since the 2008-2009 recession the view on immigration and its effects on the economy has been more negative than positive (Peri, 2012). A study done by Harvard’s Kennedy School of Government found that about 50 percent of American adults believe that immigrants burden the country because they, “take jobs, housing, and healthcare”, while the other 50 percent believe that, “immigrants strengthen the country due to their hard work and talents” (Delener & Ventilato, 2008). Over the past decade, “over half of the increase in the U.S. labor force,… was the result of immigration-l...

    Read More

  • The Effect of Illegal Immigration on the US Economy

    892 Words  | 2 Pages

    While some argue that illegal immigrants burden the United States of America and its economy, others believe that they have become essential and are an important part of the US, economy. Illegal immigration has helped in the nation’s economic growth by enabling businesses to prosper, as the illegal immigrants have provided cheap labor and long hours of hard work. Businesses benefit from illegal immigration by saving a large amount of money since they are not providing insurance, both medical and retirement plans for their illegal workers. This results in a lower production cost for the companies and lower prices for goods and services for everyone. Although illegal immigrants may not contribute directly to the economy of the nation in the aspect of paying taxes like income tax, they contribute to the economy in the form of sales taxes by purchasing the supplies they need in the same way native citizens or legal immigrants do in order to survive and live comfortably....

    Read More

  • Illegal Immigration and the Destruction of America

    1318 Words  | 3 Pages

    Immigration has been the major source for America’s growth.The United States has the most immigrants in the world ("Nation of Immigrants"). Russia has the second most with only one fourth the number in America ("Nation of Immigrants"). The United States currently has over 40 million immigrants (Kirkwood). About 28 percent of immigrants in America are illegal (Kirkwood). Those 11 million illegals make up about 3.5 percent of the U.S. population (Kirkwood). This huge number grows every day as more and more people cross the border illegally.

    Read More

  • Illegal Immigration

    2792 Words  | 6 Pages

    Illegal immigrants in the United States (US) have long been a topic of debate for policymakers and the public. The rationale about them is that they do not pay taxes; they add to the costs of taxpayers and use up funds in resources meant for assisting citizens and legal immigrants (the legal citizens). Therefore, they are perceived as a threat to the US economy. The true impacts of illegal immigrants on the US economy are discussed by debating over the economic benefits as well as economic costs of these immigrants. The negative impacts, discussed first, presented the decreases in low skilled jobs’ wage rates for legal immigrants and citizens instigated by illegal immigrants, the social services such as educations and healthcare that they utilize and add to taxpayers. Then contrary to the negative impacts, the positive impacts reveal benefits of low production costs, increases in the local market sales, undocumented tax generation, impact on growth and employment brought forth by illegal immigrants. These impacts, both negative and positive, are independently analyzed and weighed against each other. The discussion does show a slight net positive impact on the US economy in contrast to the normal belief about illegal immigrants.

    Read More

  • Immigration in the United States

    1133 Words  | 3 Pages

    In 2007, the White House issued this statement in hopes to influence a Congressional debate: “Immigration has a positive effect on the American economy as a whole and on the income of native-born American workers” (Pear). This statement relates to the idea that immigrants actually enhance the productivity of American workers and increase their earnings in a significant amount, estimated at $37 billion a year (Pear). This is just one way in which immigrants support economic development in the United States. Since the U.S. is an i...

    Read More

  • Industrialization and Immigration

    2270 Words  | 5 Pages

    An outburst in growth of America’s big city population, places of 100,000 people or more jumped from about 6 million to 14 million between 1880 and 1900, cities had become a world of newcomers (551). America evolved into a land of factories, corporate enterprise, and industrial worker and, the surge in immigration supplied their workers. In the latter half of the 19th century, continued industrialization and urbanization sparked an increasing demand for a larger and cheaper labor force. The country's transformation from a rural agricultural society into an urban industrial nation attracted immigrants worldwide. As free land and free labor disappeared and as capitalists dominated the economy, dramatic social, political, and economic tensions were created. Religion, labor, and race relations were questioned; populist and progressive thoughts were developed; social Darwinism and nativism movements were launched.

    Read More

  • America Needs More Immigrants

    833 Words  | 2 Pages

    America is sometimes referred to as a "nation of immigrants" because of our largely open-door policy toward accepting foreigners pursuing their vision of the American Dream. Recently, there has been a clamor by some politicians and citizens toward creating a predominantly closed-door policy on immigration, arguing that immigrants "threaten" American life by creating unemployment by taking jobs from American workers, using much-needed social services, and encroaching on the "American way of life." While these arguments may seem valid to many, they are almost overwhelmingly false, and more than likely confused with the subject of illegal immigration. In fact, immigrants actually enhance American life by creating, not taking jobs, bolster social service funds through tax payments, and bring valuable technical knowledge and skills to our country. If we are to continue to excel as a nation, the traditionalists who fear an encroachment of foreign-born Americans must learn to accept that we achieved our greatness as a result of being "a nation of immigrants."

    Read More

  • Immigration Laws

    1304 Words  | 3 Pages

    Those who support immigrants being protected by the law believe that immigrants help the economy by creating lower wages which enables companies to make better profits. According to Becky Akers and Donald J. Boudreaux, immigrants “should be allowed to contribute to the United States economy in the Constitutional and legal precepts that guarantee all immigrants the opportunity to pursue life, liberty, and happiness in the United States” (22). If immigrants were not here in the United States, the jobs they do might not even get done by anyone else (Isidore 103). Immigrants fill up the jobs that many Americans do not want. “Specialization deepens. Workers’ productivity soars, forcing employers to compete for their time by offering higher pay” (Akers and Boudreaux 25). As researcher Ethan Lewis said, “Economics professor, Patricia Cortes, studied the way immigrants impact prices in 25 large United States metropolitan areas. She discovered that a 10-percent increase in immigration lowered the price...

    Read More

  • Argumentative Research Paper About Immigration

    1615 Words  | 4 Pages

    The lack of enforcement of immigration policies will cause the greatest impact on America’s economy. One of the most controversial topics is how immigrants affect jobs and wages. Many argue that immigrants help the economy by working for the people that will not, but in reality they are taking Americans jobs and legal immigrants that have earned their rights. The main issue is wages: illegal immigrants are desperate for jobs and will do anything. Businessmen will take advantage of this and pay them significantly lower wages. Cheap labor negatively affects other workers. Studies show that immigrants push down wages and may cause other workers to leave a certain industry.

    Read More

  • Persuasive Essay On Immigration

    1531 Words  | 4 Pages

    Economically, immigrants greatly boost an economy by providing new job outlets, more money to companies, and reducing the unemployment rate. A large influx of immigrants will help many companies because of supply and demand, more people equals more needs to be provided. With the average immigrant worker working at lower wages, immigrants reduce the amount of money a company loses when paying their employees. A writer at The Fiscal Times connects this idea by claiming, “Without the immigrant labor, prices consumers pay for hotels and restaurants would be substantially higher (Furchgott-Roth).” Other than keeping vacations and dinners cheaper, immigration has yielded great results in the field of education. With a majority of immigrants relocating with their family or having a family in the new country, it is highly likely for them to send their offspring to school so that they can have a good education. This bodes well for the high school and/or college they attend because the children increase the graduation rate, which is one of many factors people use to determine how good a school is. Once acquiring a higher education, many of them will decide to open up their own business or wander into the job market. The former option has yielded excellent results for the United States, with immigrants owning almost one in five of the small businesses in America (Bass). The latter keeps a

    Read More

  • Argumentative Essay On Immigration

    1683 Words  | 4 Pages

    Immigration poses an ongoing debate in which people are becoming increasingly unsure as to whether immigrants are benefiting their society. This paper will examine three of the main benefits of immigration: the increase in diversity it provides, the rise in skills and labor and the benefits to the economy. Immigration leads to cross-cultural integration, therefore increasing ethnic variety. This increase in diversity is beneficial as it leads to improvements in society, as well as educational development. Increased immigration also means there are more skills and experts available to the hosting countries, as well as extra workers to take up jobs that need filling. Immigration also leads to improvements in the economy as taxes are paid and employment and wages increase.

    Read More

More about Effects Of Immigration On The Economy

Open Document