Immigrants positively affect the economy
The continual influx of immigrants positively affects three crucial elements of the economy: the labour market, economic growth, and public finance.
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The Argument
Immigrants come to America because they want more freedom and opportunities. They migrate to America so they can work hard and make a good life for themselves and their families. Immigrants actively take up niche jobs in the labor market, usually at the two ends of the skill spectrum.[1] Immigrants are necessary for a productive and vibrant economy.
Immigrants usually bring special fortes and invaluable talents to their country of destination. They boost America's economy by increasing the overall efficiency and fruitfulness of American workers.[1] They often spark the expansion of critical sectors of the economy, which draws investment and opens up new job opportunities for citizens of the country.[1] In a recent study, the International Monetary Fund states, “Immigration significantly increases GDP per capita in advanced economies.”[1] The White House Council of Economic Advisors conducted a study in 2007 which found that immigrants increased American GDP by $37 billion a year.[2]
Immigrants tend to be highly innovative. Their entrepreneurial mindsets push them to take risks and start new businesses like high-tech startups or corner shops, whereas most native-born people are not so proactive. In 2016, half of the startups that reached over $1 billion in value were established by immigrants.[1] A noteworthy percentage of Fortune 500 companies were also established by immigrants.[1]
Immigrants have contributed greatly to the high-tech and biotech industries. Among the technology and engineering companies established in the period between 1995 to 2005, 25.3 percent had a foreign founder.[2] This percentage was 38.8 in California and 52.4 in Silicon Valley, which is the heart of the high-tech industry.[2]
Counter arguments
Immigration may benefit the economy in different ways, but it comes with costs as well. Younger immigrants with children that need education or older immigrants who need (more) health care and pensions are most costly.[2] However, it is the latter group that end up needing the most help. Older immigrants who are past their prime working age need health and pension benefits from the government that are very costly.[2]
There is some evidence which shows that immigrants negatively impact the wages of native-born Americans who do not have a high school diploma.[2] For these people, immigration resulted in a 1.1 percent decrease in annual wages.[2]
Compared to the many economic benefits of immigration, these costs are insignificant. However, the undue negative views of immigrants which are on the rise in many places is indicative of a troubling fact: Most host countries fail to adequately leverage the human capital, knowledge, and skillfulness that immigrants bring them.[3]
Proponents
Premises
Rejecting the premises
References
- https://www.mercatus.org/publications/trade-and-immigration/benefits-immigration-addressing-key-myths
- https://www.brookings.edu/wp-content/uploads/2016/07/braingain_chapter.pdf
- https://www.oecd-ilibrary.org/development/how-immigrants-contribute-to-developing-countries-economies_9789264288737-en;jsessionid=1wcsGZp7kZLVC4Otw5AaKN8c.ip-10-240-5-122