The Impact Of Immigration On The Us Economy Essay

The Impact Of Immigration On The Us Economy Essay

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Immigration to the US is a polarizing topic and consequently is the subject of political debate regarding immigration laws and enforcement. These debates would appear to stem mainly from views which differ on the impacts of these immigrants to the US economy. Such debates are significant because of the importance of the US economy to global trade. Incidents such as the Great Depression have shown how reliant the rest of the world can be on America.
As such, the aim of this paper is to outline the impacts of immigration on the US economy. These effects will be explored by defining who immigrants are, and presenting their demographics. Finally, the advantages and disadvantages of their impact on the US will be analysed. At the end of the paper, the following questions will have been answered:
What are the effects of Immigrants on?
1. The Labour Market
2. The Gross Domestic Produce
3. Public Revenue i.e. Fiscal impacts

Demographics
• There are approximately 40 million immigrants living in the US. This is about 13% of the total US population of 311.6 million.
• There were four million new immigrants between 2010 to 2013 United States. About 7.5 million immigrants have arrived since 2007
• Immigrants made up 16.4 percent of the total labour force in 2010. (Singer, 2012)


Impacts on the Labour Market

One major assumption often forwarded to discountenance pro-immigration reform is that immigrants ‘steal’ job opportunities which would otherwise have gone to natives. Nevertheless, while it may be possible to see where this sort of reasoning stems from, this premise cannot be accepted because it relies on what economists refer to as the ‘Lump of Labour fallacy’; the conception that there is only a limited number of jobs available in a...


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...ch as market prices, industry and sectors which have not been expanded upon. In addition, the research only accounts for census figures; several immigrants are undocumented, or work in the informal sectors. Nevertheless, a few conclusions may be gleaned from the data. It would appear that while immigrants have noticeable effects on the US GDP, they are not really essential to the system. So being, their collective benefits and disadvantages are perhaps negligible when applied to the general economy. Notwithstanding, ideas regarding the negativity of an immigrant percentage of the labour force seem to be slightly misconstrued. Evidence would show that while there are some disadvantages, they are subject to variables. The general trend would suggest that the impacts of immigrants are mostly positive as they fill gaps in the economy and react to market changes flexibly.

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