Sam Albornoz

Macro-Economics
12-14-14

US Immigration and Economics

Immigration policy has been a long-standing thorn in the side of all those
who are American or hope to become one some day. Why do so many flock to join
the ranks of the working classes in the United States of America? Is it because of the
rolling hills of the Midwest, or the vast expanses of red rock formations in our
beautiful state of Utah, or could it be because of the lush green acres of the
hospitable South? Is it truly that hard to believe that there would be so many
climbing over walls, swimming through danger infested rivers and oceans, or overstaying their long awaited tourist or student visas after spending time in the
grandiose metropolises of our time such as Chicago, New York, or Los Angeles?
Although many of those things may be true for some, for the hundreds of thousands
and even millions that have chosen to change their life through immigration, the
answer may be much more simple economics.
It is important to keep in mind that legalization is not only a humanitarian
act; it is also a form of economic stimulus. The example of the 1986
Immigration Reform and Control Act (IRCA) demonstrates that workers with
legal status earn more than workers who are unauthorized. And these extra
earnings generate more tax revenue for federal, state, and local governments,

as well as more consumer spending which sustains more jobs in U.S.

businesses. Recent studies suggest that the economic value of a new
legalization program would be substantial, amounting to tens of billions of
dollars in added income, billions of dollars in additional tax revenue, and
hundreds of thousands of new jobs for native-born and immigrant workers
alike. In short, a new legalization program for unauthorized immigrants
would benefit everyone by growing the economy and expanding the labor
market.
(http://www.immigrationpolicy.org/just-facts/immigration-stimuluseconomic-benefits-legalization-program)

Immigration has taken many forms over the years and throughout the
history of this great nation. For our founding fathers and those who came before,
immigration was not only heroic it was for many even divinely guided. For others
in our history, it was a forced exodus away from family and home. Today,
immigration is no more a romantic story told by candlelight, where threads of
prosperity, luxury and abundance weave a tale of such alluring scent that very few
cannot dream of getting a taste of it. The immigrants of today, much like those gone
before them, come to this country in search of a better life not only for themselves.
Many times they do not expect a better life for themselves, but for those back home
and those that have made the journey by their side. America, like a casino in Vegas,
lures you in to play just once and the rest is history.

Now, immigration in the media often becomes about numbers. The numbers
of jobs immigrants have taken away from honest tax paying citizens, or the number
of undocumented and illegal persons draining our beloved social programs. So, why
after all of things in our right mind would we want to change immigration policy to
reward those that have done us so much harm? Again, its all about economics.
According to whitehouse.gov, here are a few other ways immigration reform
is all about economics:
Fixing our broken immigration system would increase Americas
GDP
Stronger GDP means a better standard of living for Americans.
The nonpartisan Congressional Budget Office (CBO) estimated
that immigration reform would increase real Gross Domestic
Product relative to current law projections by 3.3 percent in 2023 and 5.4
percent in 2033 an increase of roughly $700 billion in 2023 and $1.4
trillion in 2033 in todays dollars.

Immigrant-owned small businesses mean more jobs and a boost in

demand for local goods.

Immigrants start small businesses.

According to the Partnership for a New American Economy, immigrants
started 28 percent of all new business in 2011.
Immigrant-owned businesses create jobs for American workers.

According to the Fiscal Policy Institute, small businesses owned by

immigrants employed an estimated 4.7 million people in 2007, and these
small businesses generated more than $776 billion in revenue annually.

Immigrants boost demand for local consumer goods.

According to the 2010 American Community Survey, immigrants earned a
total of $1.1 trillion, and the Immigration Policy Center estimates that the
spurchasing power of Latinos and Asians, many of whom are immigrants,
alone will reach $1.5 trillion and $775 billion, respectively, by 2015. More
than 40 percent of Fortune 500 companies were founded by immigrants or a
child of immigrants. According to the Partnership for a New American
Economy these companies employ more than 10 million people worldwide
and generate annual revenue of $4.2 trillion.
(http://www.whitehouse.gov/issues/immigration/economy)

As you can see, there are many reasons why immigration reform can live up
to its old time cowboy flare of times past. What about the issues of jobs being
transferred from one class of people to another, or the drain on social programs or
the crime and drugs brought about by loose border and immigration control? Those
are all valid and truthful points that must be addressed. The answer cannot be
found by blindly staring at one piece of the puzzle while missing the whole picture
and this is no ordinary puzzle so we cannot expect to get it right over night. We
must look at an immigration reform that not only faces the problem of immigrants

here now, but also tackles the much bigger issue of securing our borders and
making sure that immigration continues to a controlled river of economic prosperity
for all.
As [a] BPC report notes, when the full range of economic variables is
considered, it becomes clear that immigration reform will contribute to our
nations future economic prosperity.
(http://immigrationimpact.com/2013/11/01/how-would-immigrationreform-help-the-u-s-economy/)

Bibliography
An Immigration Stimulus: The Economic Benefits of a Legalization Program. (2013,
April). http://www.immigrationpolicy.org/just-facts/immigration-stimuluseconomic-benefits-legalization-program
Immigration and the Economy. (n.d.).
http://www.whitehouse.gov/issues/immigration/economy.
How Would Immigration Reform Help the US Economy? (2013, Nov. 1).
http://immigrationimpact.com/2013/11/01/how-would-immigration-reformhelp-the-u-s-economy/