Immigrants and economic recovery

Michelle Chen

Immigrants and economic recovery

While the standard nativist rhetoric denounces illegal immigration as a drain on public resources and the “legal” workforce, in times of economic crisis, the flipside of the debate—immigrants as an economic resource—may gain more traction. The William C. Velásquez Institute has published an analysis of the potential economic benefits of overhauling immigration policy.

The key arguments:

“Legalization of the nation’s undocumented workers is now an economic necessity, as well as a moral and civil rights imperative. Legalization increases short-term incomes, job creating consumption and net tax revenues in the low wage segments of the labor market, as well as sets the long-term foundation for an expanding middle class and a more sustainable economic recovery….
“Movement now towards legalization and naturalization of the roughly twenty million legal permanent residents and undocumented persons would create local and state regional mini-booms in civic engagement. Furthermore, enabling civic participation of these previously excluded groups will substantially intensify public support for an inclusive and humane tenor with regard to immigration reform as well as public policies aimed at providing support to low income and socially disadvantaged socioeconomic profiles.”

How does that square with the anti-immigrant meme that undocumented workers undermine wages for hardworking "natives"? The paper cites not immigration itself, but myopic policies as the catalyst of an exploitative shadow economy:

"The unintended consequences of further pursuing the current enforcement only approach include generating a vulnerable underground economy and maintaining an artificially low wage floor, actually encouraging the demand for vulnerable undocumented workers."

If Americans aren't persuaded by ethical grounds for crafting a more just immigration system, they might want to keep this point in mind when weighing the new administration's policy priorities and the emerging economic stimulus:

"legalizing the current estimate of 10-12 million undocumented workers would result in a net income rise of $30-36 billion, support 750,000-900,000 new jobs, and generate $4.5 to $5.4 billion in net tax revenue!"

Not a bad bonus for making our borders more humane.

Posted at 1:45 PM, Jan 26, 2009 in Immigration | Permalink | View Comments

Comments

"How does that square with the anti-immigrant meme that undocumented workers undermine wages for hardworking "natives"? The paper cites not immigration itself, but myopic policies as the catalyst of an exploitative shadow economy:"

Only an economic neophyte, or a die-hard moron, could fail to understand that, ceteris paribus, a rise in the labor pool must lead to a decline in the wage rate. Jorge Borjas has revealed that a 10% increase in supply leads to a 3 to 4% reduction in wage rate. There is very little evidence, to support the opinion that mass immigration is good for the natives people of any land. Western countries have suffered tremendously at the hands of many immigrants while nations such as Japan and S. Korea have flourished without them. Those of you who seek to undermine traditional populations, fail to understand that you too will suffer from the resulting instability.

Borjas study: http://www.mitpressjournals.org/doi/abs/10.1162/003355303322552810

Out of many challenges in front of obama illegal immigrants one major concern specially at a time when the economy is slipping. you could also be economic adviser just by clicking here and know more about recovery from economic crisis.

Well, this is the way I see it.

I can't say the ILLEGAL ALIENS are completely to blame for the shape of our economy, but they are a BIG part of the problem. The ILLEGAL ALIENS send BILLIONS upon BILLIONS out of this Country every year, money we will NEVER see again. Does this help our economy?

How about the BILLIONS the American taxpayers fork out for the ANCHOR BABIES, the schooling of them, the medical care and the list goes on, and on, and on.

How about the MILLIONS upon MILLIONS paid to jail ILLEGAL ALIENS for the crimes, then the cost to deport them. Does this help our economy?

Then you have these activist groups, the Catholic Church and the ACLU that want AMNESTY for these ILLEGAL ALIENS. It would be absolute suicide for this Country if AMNESTY were granted to the 20 million or so ILLEGAL ALIENS. We have more and more people out of work everyday and they want to add another 20 million to this Country? I say, "NO"!

If AMNESTY were ever granted to these 20 million ILLEGAL ALIENS, you can bet big money that 3 years from now, there would be ANOTHER 3-5 million ILLEGAL ALIENS demonstrating on our soil for AMNESTY.

An end MUST come to this illegal immigration. The perfect tool we have so far is E-Verify. It MUST be used by ALL businesses and Government Social Services. EVERY employee must be checked! If they are illegal, they are to be dismissed!

I believe it is time for all 50 States to pass a State law, like Arizona, Oklahoma, Mississippi, Missouri, South Carolina and a few others. It is time for these ILLEGAL ALIENS to go back to their home Country and get out of this Country. The problems they are causing will not go away until the ILLEGAL ALIENS are out of this Country. I think that is plain to see.

NO ILLEGAL ALIEN HAS A RIGHT TO BE IN THIS COUNTRY FOR ANY REASON!

If we do not show humanity to so many who are with and of us, we will surely suffer for it.

In the most basic way it makes sense that a humane immigration policy and fair work force practices will help lead to prosperity. I can't imagine that policies and practices that arise from fear and brutality will lead to any kind of economic or social health for the United States.

Firstly, as zylonet has pointed out dilution of the labor market is not the answer. As I am unwilling to spend all evening posting the specifics, it is commonly known by centrists and others with critical thinking skills that illegal immigrants are *not* an economic boon to this nation.

Secondly, by definition these people are criminals. The should be finger printed, DNA taken, and retina scan given and then deported to their country of origin. If they return they should be impressed into a minimum of ten years of hard labor producing goods to support their incarceration. Anybody caught employing illegals should pay a 25k per head fine and lose their business license.

In this dire economy it will be political suicide for anybody of note (hint: not fringe web sites like this one) to champion their cause. I'm a moderate, but I have no patience for people who did not go through the proper channels to be here. But what about them and their families you might ask? I don't care. I care about us and OUR families.

Get with the program, folks. Obama was not elected to champion your cause, he was elected to stand up for the lower and middles classes of LEGAL citizens.