The impact of illegal immigration on the American economy has increasingly become a national debate in the United States over the last decade. The issue has already turned political with President Donald Trump indicating that illegal immigration is the primary cause of low wage and high unemployment among the American citizens (Varas). Even though some Americans believe that illegal immigration has a negative impact on the US economy, studies have shown that undocumented immigrants contribute immensely to the growth and development of the US economy.
Illegal Immigrations Contributes to the Growth of the US Economy
The United States continues to be a perfect destination for many immigrants in the world. The continuous economic growth and the increasing reputation of America as the land of opportunities make the country an ideal destination for many immigrants. Some immigrants may attain legal status, but many will continue to live in the country as undocumented or illegal immigrants. Fazel-Zarandi, Feinstein, and Kaplan indicate that currently there are approximately 16.7 million illegal immigrants in the United States which is more than the conventional estimate of 11.3 million (2). The authors further indicate that Mexico leads as the country of origin for many undocumented immigrants. Over the last quarter of a century, the number of immigrants has increased significantly. Between 1992 and 2004, the number of border patrol personnel grew by about 300% which directly signifies the increase of immigrants trying to cross the borders into the United States illegally (Fazel-Zarandi, Feinstein, and Kaplan, 3).
Some Americans including President Donald Trump believe that illegal immigrants are the primary cause of the unemployment rate in the United States which has hurt the American economy (Varas). According to Donald Trump, undocumented immigrants have lowered the standard wage in the market and have taken jobs from American citizens. The principal argument on this context is that the illegal immigrants are desperate and that compels them to take up job positions at a lower wage than what American citizens would take (Varas). Therefore, many employers would prefer illegal immigrants to American citizen purely for profit gain. However, the argument is not valid because the illegal immigrants only affect the American workers with less than high school education. The main reason is that most immigrants have similar skills and job interest as the American citizens with less than high school education (Varas). Therefore, they compete for the available jobs. On the contrary, American citizens with less than high school education only constitute 8% of the overall US labor force (Varas).
Despite the view by several Americans that illegal immigrants hurt the US economy, studies have shown that the illegal immigration plays an important role in the growth and development of the United States economy. A study conducted by the National Academies of Sciences, Engineering, and Medicine showed that the undocumented immigrants have no effect on wages and the employment of United States workers in the long-term (UNIDOS). The report also indicated that most of the illegal immigrants in the United States are highly entrepreneurial. Many have started successful businesses that create jobs for American citizens which have helped in reducing the unemployment rate hence aiding the growth of the US economy. An average illegal immigrant (who owns a business) in the United States hires approximately 11 employees, and currently, their enterprises account for about 3.7 million and 5.2 million jobs in the US economy (UNIDOS).
UNIDOS further indicates that the illegal immigrants pay approximately $11.64 billion in state and local taxes annually. Therefore, they directly provide funds for government expenditure in areas such as healthcare through a tax which help in boosting economic growth. On average, an illegal immigrant contributes about 8% of their income to taxes (UNIDOS). Moreover, all immigrants not considering their taxes contribute about $80,000 more in taxes than what government spends on them through social services throughout their lives (UNIDOS). Therefore, these facts indicate that illegal immigration helps the US economy. According to UNIDOS, the undocumented immigrants contributed about $13 billion into the retirement accounts and only received $1 billion. The organization further indicates that in total, the immigrants have collectively injected about $330 billion to the Social Family Fund which has enabled the government to accomplish numerous social projects that have had a positive impact on the economy.
Illegal immigrants also contribute to the population growth of the United States which has had a positive impact on the economy. According to Varas, Jobs in the United States are not fixed, and as the population increases, job opportunities also increases. Varas further adds that when the population is high, consumption and product demand also increases which translates to increased production. Increased production means more jobs to the American people. A study by the National Bureau of Economic Research (NBER) concludes that illegal immigrants play an important role in promoting labor specialization (Varas). The labor specialization increases job diversity which improves total productivity in the economy. The research also indicated that the illegal immigrants are not direct substitutes to the American workers (Varas). The immigrants and American citizens have different tastes and preferences regarding jobs they target. The difference in taste and preference is due to differences in language, education level, skills level, and work experience. Additionally, Varas cites research conducted between 1990 and 2004 which showed that the increase in illegal immigrants resulted in wage increase for American citizens both in the short-term and in the long-term which is good for the economy.
Conclusion
Even though some Americans believe that illegal immigrates contributes negatively towards the US economy, studies have proven that illegal immigration promotes the economic growth of the United States. Many Americans with a negative perception about the illegal immigration believe that those illegal immigrants have the capability of taking their jobs. However, research has shown that the majority of undocumented immigrants are entrepreneurial and many have started successful businesses that employ thousands of American citizens. Additionally, illegal immigrants contribute to the economic growth of the United States by paying taxes and improving overall productivity in the economy.
Works Cited
Fazel-Zarandi, Mohammad M., Jonathan S. Feinstein, and Edward H. Kaplan. "The number of undocumented immigrants in the United States: Estimates based on demographic modeling with data from 1990 to 2016." PloS one 13.9 (2018): e0201193.
UNIDOS. "How Immigrants Are Enriching Our Economy and Society." UnidosUS, 2018, www.unidosus.org/issues/immigration/resources/facts.
Varas, Jacqueline. "How Immigration Helps U.S. Workers and the Economy." AAF, 20 Mar. 2017, www.americanactionforum.org/insight/immigration-helps-u-s-workers-economy/.
