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Immigrants Play a Crucial Role in U.S. Economy
By Americans for Tax Reform | 08/24/09 | 01:02 PM EDT | 6 Comments
While the immigration debate has taken a backseat to the Democratic agenda of cap-and-trade and government run healthcare, 12 million illegal immigrants are still here, working and secretly contributing to our economy (Ssshhh!). The U.S. government spends substantial resources on building fences, airtight border control, and punishing employers who hire illegal’s. With all the money we spend trying to keep people who want to work out of this country, it is worth asking “what benefits do we get from harassing immigrants?”
Zero according to recent studies published by the Cato Institute which disprove many common myths associated with the immigration of Latin America’s poor. As the title of one study suggests, As Immigrants Move In, Americans Move up, increasing immigration quotas, (via temporary worker permits) has two positive effects on the American economy. First, immigrants expand the overall size of the economy; that seems positive. Second, their simple presence incentivizes Americans to advance their skill set or value.
To suggest that immigrants take American jobs that will never be replaced espouses Mercantilistic ideology, a school of thought most thought died centuries ago. Wealth is not finite; to demonize immigrants as thieves who steal American jobs is false. Immigrants necessitate the creation of higher income jobs: accountants, doctors, managers, and other illustrious professions to manage newly legalized workers.
Secondly, when Hispanic immigrants come to the U.S. they often take what we would consider “lower end jobs”, thus putting them in competition with the very lowest skilled and educated Americans. Immigrants, by taking these “low-end jobs” forces Americans to improve their market worth so they are competitive for upper tier jobs. Immigrants effectively push Americans into higher paying jobs that offer a better quality of life. This may seem counterintuitive but is confirmed by the shrinking African-American underclass in three important categories: poverty, income, and educational attainment.
The Cato authors all came to the same conclusion; current immigration law is detrimental to the American economy. Through complicated econometric simulations, Cato authors Peter Dixon and Maureen Rimmer concluded that legalizing more unskilled workers would result in a $180 billion gain to the American economy.
The idea that the U.S. is “importing poverty” and social parasites is economically false. Instead of trying to ram through depressive economic legislation, Democrats, who dominate Congress and the Presidency, should be looking for ways to expand American’s economy through immigration reform that includes expanding visa caps.
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Comments
Our economy would fall apart without immigrants. The fringe element that calls for massive deportation are unrealistic and counter-productive. They also undermine and marginalize legitimate issues championed by conservatives.
BRAVO! The report from Cato cited here represents the utmost in common sense which will hopefully allow for a more thoughtful discussion on this topic, particularly from our side of the aisle. Since taking the reins of this site earlier this year, I have personally run many former commentators to the rail who had one theme: anti-immigration based on fear, ignorance and, as the above article so beautifully puts it, outdated Mercantilist economic ideas. Immigration has always been an American blessing, a truth which gets attacked most aggressively in times of economic distress.
Separately: I'm posting this comment from 30,000 feet, hooked up wirelessly on a flight aboard Virgin Airlines. Pretty cool, very useful.
This is a very well written article and it really makes sense. Enough with the nutty opinions on this subject.
I've been reading and hearing about "studies" like this for years. Studies from pro-immigration think tanks invariably show that immigration is a boon. Studies from anti-illegal immigration think tanks say it's a costly curse. I know the following, however without the use of any studies whatsoever.
1. Combining open borders with a welfare state is a sure path to bankrupcy and increased statism.See California.
2. It's not about legal immigration. It never has been. People who mix the two in arguments (usually ad hominum and using the "R" word) are pushing an agenda.
3. Illegal immigration hasn't been changed because both the left and big business loves it. Illegals and their children generally vote for more government goodies and higher taxes (for the rich of course). Big business (esp agri-business) wants to keep labor costs down. These business's contribute huge amounts of political swag to keep the low cost labor valve full on.
4. It's also not necessary to have a study to show that healthcare in this country would be LESS expensive without illegal immigration than with it. We are on the verge of installing a national health service based on health costs. Something which will change the fundamental nature of this country from one where people expect to take care of themselves to one where people are taken care of by their all powerful government. How's that for an effect of illegal immigration?
5. According to government statistics, 37 percent of Los Angeles residents were not born in this country. Just how much more immigration, legal or illegal do you have to approve of to not be considered a "nativist" (i.e.code for racist)?
Just asking.
Illegal immigrants do play an important part, that of depleting our otherwise meager resources.
Many Americans have paid the price for sustaining illegal immigration.
Our court systems are supported by tax dollars. Illegal immigrants do not pay for auto insurance, but can and do sue law abiding citizens and reap benefits from doing so. Not fair?! Further, what no one ever talks about is the enormous effect on our laws because of illegal immigrant lawsuits, both from behind bars and from the other side. The result of these precedent setting cases, cost law abiding Americans a hell of a lot of money; but worse yet, we are stuck having to abide by the bad laws that culminate from these law suits. Oh by the way, the USA also provides illegal immigrants, at tax payer expense, defense counsel with unlimited funds. Something you and I would NOT be afforded.
Oh, I almost forgot, don't forget to ask your county coroner's office what it costs to bury these illegal immigrants: AT TAX PAYER EXPENSE.
ATR should have noted that legal immigrants contribute to our American culture and economy. Most folks are aware that there's a vast distinction between legal and illegal immigration. Some conveniently ignore the distinction.
Legal immigration is most welcome in a free society, because law abiding immigrants play by the rules and wait their turn in the immigration process. They get health and security background checks, and usually arrive with education and marketable skills.
Since legal immigrants are motivated to succeed, they contribute to our democracy. They aren't a drain on our infrastructure and social services as they earn their way to permanent residency and eventual citizenship.
Legal immigrants work hard to assimilate because they want to pursue the American Dream. Nearly all of the available research points to the fact that legal immigration is far more beneficial to our nation than illegal immigration. That's why legal immigration ought to be increased at the same time as illegal immigration is curtailed.
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