The Positive Effects of Illegal Immigration on the U.S. Economy
Influx of Low-Skilled Labor
Not only are illegal immigrants creating jobs with basic consumerism, the jobs that they are “taking from Americans” involve low-skilled, manual labor that most Americans, even those who are unemployed, are unwilling to do (Jacoby). The need for low-skilled workers in the American economy still exists. Despite the United States seeing some of its highest unemployment rates ever in the past few years, there are still many jobs that need to be filled, and many of these jobs are essential to the United States economy. For instance, there is a great need for seasonal labor in agriculture, and most Americans are not willing to do this vital work due to its temporary nature. These low-skilled workers not only provide important labor in vital industries, like agriculture, they also help sustain work for higher-skilled American workers. Tamar Jacoby, who has dedicated most of her career to writing on immigration issues, described this effect in an article for the New York Times:
“Think about your favorite restaurant. If the owner had to close for lack of busboys or dishwashers, that would put a lot of Americans out of work: the chef, the waiters, and the manager. It would also mean less work for other workers up- and downstream in the local economy: farmers, food processors, truckers, insurance agents--the list goes on and on.”
Much of the low-skilled labor that illegal immigrants perform is in vital industries, and they often perform theses jobs at very low wages. The fact that they are willing to accept such low wages benefits the American consumer, by way of cheaper goods. As the wages of low-skilled workers go down, the prices of the goods and services they help to produce go down as well. Low-skilled workers are a vital part of any economy, and illegal immigrants help to provide the low-skilled labor that is necessary for the United States economy, and industries within it, to succeed.
Budget Surplus
Illegal immigration not only provides some of the United States’ most vital industries with the necessary low-skilled labor, but it also provides the United States, and many of its states, with a budget surplus. One of the other main reasons that the majority of Americans feel so strongly about the United States becoming tougher on illegal immigration is that they believe illegal immigrants do not pay taxes, while still receiving social benefits. The truth, however, is the converse: Illegal immigrants pay many of the same taxes that American citizens pay, but they receive very few of the benefits that their tax dollars pay for. According to a 2006 Texas poll, 1.4 million illegal immigrants who reside there added nearly $18 billion to the sate’s economy and only received $1.2 billion in benefits (Ewing). This is not only the case in Texas. A recent study conducted by Tennessee state legislators found that illegal immigrants in the state more than pay their way, creating a $37 million surplus (Farmer). Economists across the United States are experiencing findings similar to those in Texas and Tennessee, and it makes sense. Illegal immigrants pay all sales taxes, property taxes, and payroll taxes. However, they rarely apply for social programs like welfare, for fear of their legal status being revealed, and they will never receive a dime of social security. When people immigrate to the United States illegally, they are immigrating solely for job opportunities, not welfare. This is always a positive for a country’s economy. The revered economist Milton Friedman once said, "It is one thing to have free immigration to jobs. It is another to have free immigration to welfare. And you cannot have both.” The illegal immigration being experienced in the United States is an example of the free immigration to jobs that Friedman alluded to.
Not only are illegal immigrants creating jobs with basic consumerism, the jobs that they are “taking from Americans” involve low-skilled, manual labor that most Americans, even those who are unemployed, are unwilling to do (Jacoby). The need for low-skilled workers in the American economy still exists. Despite the United States seeing some of its highest unemployment rates ever in the past few years, there are still many jobs that need to be filled, and many of these jobs are essential to the United States economy. For instance, there is a great need for seasonal labor in agriculture, and most Americans are not willing to do this vital work due to its temporary nature. These low-skilled workers not only provide important labor in vital industries, like agriculture, they also help sustain work for higher-skilled American workers. Tamar Jacoby, who has dedicated most of her career to writing on immigration issues, described this effect in an article for the New York Times:
“Think about your favorite restaurant. If the owner had to close for lack of busboys or dishwashers, that would put a lot of Americans out of work: the chef, the waiters, and the manager. It would also mean less work for other workers up- and downstream in the local economy: farmers, food processors, truckers, insurance agents--the list goes on and on.”
Much of the low-skilled labor that illegal immigrants perform is in vital industries, and they often perform theses jobs at very low wages. The fact that they are willing to accept such low wages benefits the American consumer, by way of cheaper goods. As the wages of low-skilled workers go down, the prices of the goods and services they help to produce go down as well. Low-skilled workers are a vital part of any economy, and illegal immigrants help to provide the low-skilled labor that is necessary for the United States economy, and industries within it, to succeed.
Budget Surplus
Illegal immigration not only provides some of the United States’ most vital industries with the necessary low-skilled labor, but it also provides the United States, and many of its states, with a budget surplus. One of the other main reasons that the majority of Americans feel so strongly about the United States becoming tougher on illegal immigration is that they believe illegal immigrants do not pay taxes, while still receiving social benefits. The truth, however, is the converse: Illegal immigrants pay many of the same taxes that American citizens pay, but they receive very few of the benefits that their tax dollars pay for. According to a 2006 Texas poll, 1.4 million illegal immigrants who reside there added nearly $18 billion to the sate’s economy and only received $1.2 billion in benefits (Ewing). This is not only the case in Texas. A recent study conducted by Tennessee state legislators found that illegal immigrants in the state more than pay their way, creating a $37 million surplus (Farmer). Economists across the United States are experiencing findings similar to those in Texas and Tennessee, and it makes sense. Illegal immigrants pay all sales taxes, property taxes, and payroll taxes. However, they rarely apply for social programs like welfare, for fear of their legal status being revealed, and they will never receive a dime of social security. When people immigrate to the United States illegally, they are immigrating solely for job opportunities, not welfare. This is always a positive for a country’s economy. The revered economist Milton Friedman once said, "It is one thing to have free immigration to jobs. It is another to have free immigration to welfare. And you cannot have both.” The illegal immigration being experienced in the United States is an example of the free immigration to jobs that Friedman alluded to.