Immigration Impact: The Immigration Effect On The United States

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Immigration Effect “We are a nation of immigrants, and that means that we’re constantly being replenished with strivers who believe in the American Dream,” stated President Obama on November 21,2014.The immigration debate on the United States has been one of the most controversial issues faced by the population. The country encounters consistent challenges regarding weak economic growth, dramatic levels, and projected growth in federal debt. The reform of immigration can raise population growth, labor force, and consequently a growth in Gross Domestic Product (GDP). The impact on the economy based on those factors can be perceived as a positive or negative outlook. The immigration policies in the United States are stimulating in that they…show more content…
Immigrants increase labor supply and demand for goods and labor shows the wage level unchanged and that the amount of new jobs created is equal to the amount of migrants. The size of the LS shift is matched by the size of the net new jobs, which implies no displacement effect. In conclusion, when immigration reform is done correctly, it will use the fact-based reality that immigrants of all skill levels are good for the native economy, including wages, jobs, and economic growth.
Another important key factor is entrepreneurship. It plays a vital role in the growth of the national economy. In the United States, the number of Hispanic-owned businesses has grown three times the national average. Statistics reported that in 2014 immigrant entrepreneurs launched 28.5 percent of the new businesses, helping fuel an uptick in new business creation nationally. Furthermore, “immigrants are able to identify gaps in the marketplace for products or services that could benefit their local communities”, declared Kallick who is a senior at the Fiscal Policy Institute
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The labor force participation rate dropped from 63 percent in 2007 to 58.5 percent in June 2010,even while the unemployment rate then doubled . Since the onset of recession, job competition has similarly greatly increased.
A new research made by Americas Society/Council of the Americas and Partnership for a New American Economy finds that the 40 million immigrants in the United States have created $3.7 trillion in housing wealth, which has help stabilize less desirable communities where home prices are diminishing. Less regard has been paid to how immigration affects the housing market, which is a vital factor in the debate of immigration. Immigrants directly drive housing demand through their own purchasing power. Also, they shift demand for housing within metro areas towards neighborhoods that had fallen out of

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