The ever-increasing influx of immigrants to the US has been a widely departed topic in recent years, with both political parties having strong opinions either in favor or against the extensive migrations.
Yet, despite what some politicians say about immigrants, according to various financial experts, they may actually be improving the US economy. Here’s how.
The Land of Immigrants
The United States is home to around 45 million immigrants, more than any other nation on earth, according to CNN.
This figure suggests that close to 14% of the entire population of the US are immigrants, and this doesn’t count those who are undocumented, which could add another 11 million people.
Can America Afford to House So Many Immigrants?
The fiscal burden of housing so many immigrants has begun to take its toll on various states due to the so-called border crisis.
States like New York have seen a drastic increase in the number of migrants in recent years, which has added additional financial stress to the region’s economy.
New York Set to Spend $12 Billion on Immigrants
Speaking in August 2023, New York’s Mayor, Eric Adams, announced the city may be forced to spend around $12 billion to accommodate the thousands of migrants arriving in the region, per Bloomberg.
At the time, the mayor, along with various officials, suggested the hefty price tag could begin to negatively affect the city’s ability to provide regular services to its 8 million residents.
A Labor Shortage in the United States
Despite all the negative attention surrounding immigrants, others are under the impression they ultimately have a net positive effect on the nation and its economy as a whole.
According to Dhaval Joshi, chief strategist at BCA Research, an economic analysis firm, the US is experiencing a severe labor shortage. However, the surge of immigrants arriving in the US since 2022 has helped to fill many of the open vacancies.
Dodging a Recession
Various economic experts believe the influx of immigrants filling roles in the labor department actually allowed the US to avoid a recession.
According to David Bier, associate director of immigration studies at the Cato Institute, “One important way to reduce inflation is to increase the production of goods and services,”
Immigrants in the Labor Force
Bier continues by suggesting that the US narrowly avoided a recession in recent years due to the influx of immigrants into the labor department.
“One reason why the economy has adjusted over the last three years is the fact that we have started to get these immigrants into the labor force,” he said.
Immigrants Fill Important Roles
Immigrants who come to the US typically fill understaffed positions, including roles in care homes and construction.
While many Americans fear they are losing their jobs to lower-paid, unskilled laborers, Bier argues that this isn’t necessarily the case. Instead, he argues that it incentivizes workers to become better educated and learn more skills to compete for the position.
Banning Immigration Would Be Detrimental for the Nation, Says Analyst
“The story of the last 40 years is not declining living standards,” says the analyst.
“It’s a shift toward a more skilled, more service-sector economy. Banning immigration would disrupt that change in a very significant way.”
Economist Believes Immigrants Create More Economic Growth
Tarek Hassan, A BU College of Arts & Sciences economics professor, argues that “More immigrants create more economic growth.”
He continued, “And because it creates more economic growth locally, it raises the wages of the people who are already there.”
Increase in Foreign Labour Comes at a Good Time
According to some experts, thousands of immigrants continue to venture to the States in hopes of securing long-term employment, and it couldn’t come at a better time.
The US birthrate has continued to drop over the last decade, and the increase in foreign labor has helped ensure the filling of various positions in many industries.
Immigrant Entrepreneurs in the US
The truth is that America as a nation was built by immigrants from across the world who set out to find a better life for their families and future generations.
Many have been able to achieve this and continue to do so in the 21st century. According to a study published in 2022, over 55% of US startups valued at over $1 billion were created by immigrants.
