U.S. Immigration: Assimilation, Culture, and Economics - Essay Sample

Introduction

Presently, the United States hosts the largest population from immigration in the world. Immigration policy in the US is a contentious issue despite the faster assimilation of immigrants compared to other countries, particularly the developed European nations (Abramitzky & Boustan, 2017; PENN WHARTON, 2016). While much of the concerns borders on the culture, economists argue differently. Economists find little evidence to support the claim that American jobs have been reduced due to the inflow of foreign labor. Majority of economic studies agree with the economic theory perspectives in arguing that over a long term, the American wages are unaffected and that economic impacts of immigration are positive for native Americans and the economy of the country as a whole (PENN WHARTON, 2016). However, with the majority of the immigrants being illegally in the country fears continue to grow among various regulatory bodies. As a result, border security and comprehensive immigration reforms have been implemented to control the influx. President Trump during his campaigns before and after his presidency has made the issue of immigration a priority in his administration (Mayda & Peri, 2017; Migration Policy Institute [MPI], n.d.).

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Since president Trump inauguration in 2017, immigration policies have undergone massive changes from strict enforcement measures and introducing application vetting requirements to reduce refugee admissions and implementing temporary protections for some non-citizens and now building a wall on the US-Mexico border (Mayda & Peri, 2017).

This paper focuses on the impacts of immigration policy changes on macroeconomic facets. It also discussed the winners and losers with such reforms. The conclusion summarizes key points from the article.

Impacts of Immigration Policy Changes on Macroeconomic Facets

Majority of immigrants in the US work in specific industries such as construction, farming, preparing food and cleaning jobs (Camarota, 2013). For instance, approximately 22% of construction jobs are occupied by illegal workers (PENN WHARTON, 2016). Whether these immigrants take away jobs from the natives or not, their impact on the American economy cannot be ignored. They contribute to the Gross Domestic Product, tax among other developments (Abramitzky & Boustan, 2017). With President Donald Trump so much determined to control and reduce different immigration aspects of the economy will be affected. Some of the areas are discussed in the following paragraphs.

Immigration and GDP

Academic studies using different methodologies and perspective have concluded that immigration has been beneficial to the US economy particularly on the supply side by increasing labor pool and capital productivity (Camarota, 2013). Workforce expands because immigrants enable a business to grow as it reduces pressure on qualified labor as well as promoting hiring in other sections of the economy as a result of an increase in aggregate demand. On capital productivity, the majority of immigrants are entrepreneurial thus increases chances of business cropping up, innovation and inventions. Also, population increase caused by immigrant increase the demand for goods and services which directly contributes to economic growth. High levels of consumption also increase government revenues from utility bills paid by the immigrants (Camarota, 2013). All these elements contribute to GDP. Controlled immigration policies such as permitting skilled immigrants would result in reduction workforce, capital productivity and consumption thus lowering GDP (Camarota, 2013; Varas, 2017).

Immigration and Employment

Immigration aids in filling gaps in critical skills and hiring shortages. Increase in populations makes companies demand more workforce to produce more goods and services thus creating job opportunities, not just for the immigrants but also native Americans (PENN WHARTON, 2016; Varas, 2017). Therefore, rather than competing for job opportunities (as it is a common misconception), immigrants complement the labor market. Cutting down on the immigrants not only reduces demand and supply but also causes companies to shrink thus causing native-born Americans to lose their jobs too (Varas, 2017).

Immigration and Standard of Living

As discussed earlier, immigrants are found in specific industries such as construction, farming, and cleaning. Most of these jobs require low-skilled workforce which most of the immigrants whether legal or illegal workforce have. Therefore, by filling essential occupations for the native-born Americans who have a shortage in supplying these areas, immigrants allow them to pursue higher skilled jobs they have privilege over the immigrants (Varas, 2017). Also, by providing childcare and housekeeping services, low-skilled immigrants allow native women to work for longer hours (Varas, 2017). These contributions increase the standard of living of the native. However, with controlled entry policy, allowing only high skilled immigrants into the country, the natives will be left competing for the high skilled jobs while also attending to low-skilled occupations. Consequently, the standard of living will be lowered.

Immigration and Taxes

With controlled entry, the government is set to lose and benefits in some areas. First, the tax revenues provided by the low-skilled immigrants will be sacrificed. However, controlled immigration reform introduces penalties and fines for any activities that have undocumented income. The change introduces back taxation, and it is clear that the local, state and federal government will gain such a reform (MPI, n.d.). Also, by controlling entry, the majority of the immigrants will seek legal documentation, and their social security number will quickly help trace their income.

Impacts on Employees and Job Seekers

In every reform, there are winners and losers. So is the case in immigration reform. High-skilled immigration threatens employees in such occupations. High-skilled immigration will create talent competition in higher-skilled jobs. Both the natives and legal migrants will compete in these areas without much preference for the natives (Varas, 2017). On the other hand, high-skilled immigration will reduce competition on the low-skilled workers and their jobs. Therefore, job seekers in the low-skilled labor market will thrive under such a reform as low-skilled immigrants will be restricted from entering the country.

Impacts on Businesses

Just as there are winners and losers in the labor market, so is the case for businesses. While high-skilled companies stand to benefit from talent competition in the labor market, low-skilled industry stand to lose. Immigrants, specifically illegal ones, provide cheap labor thus reducing operational costs in terms of wages and salaries. However, with illegal immigrants set to return to their homeland and those with temporary work permits set to lose such permits, native companies will have to deal with natives unwilling to work for low pay. Companies will be forced to increase salaries and wages, creating a reduction in marginal benefits (Varas, 2017).

Conclusion

This paper has looked at the economic impacts of immigration reform in the US. The article has established that the immigrants contribute positively to the economy (GDP) of the country by increasing capital productivity, creating employment, providing tax revenue, and improving the standard of living of the Native Americans. The article has also established that with immigration reform there will be both winners and losers in the economy - the government, natives, and businesses (employers). The government is set to witness a decrease in the GDP; high-skilled workers will face talent competition while low-skilled workers will have weak competition; employers in high-skilled business with enjoy quality workforce while low-skilled business forced to turn to the natives and increase wages and salaries.

References

Abramitzky, R., and Boustan, L. (2017). Immigration in American economic history. J Econ Lit, 55(4), 1311-1345. DOI: 10.1257/jel.20151189

Camarota, S. A. (2013, May 17). The fiscal and economic impact of immigration on the United States: Testimony prepared for the Senate joint economic committee. Center for Immigration Studies. Retrieved from: retrieved from https://cis.org/Testimony/Fiscal-and-Economic-Impact-Immigration-United-States

Mayda, A. M., and Peri, G. (2017, June 14). The economic impact of US immigration policies in the Age of Trump. Retrieved from: https://voxeu.org/article/economic-impact-us-immigration-policies-age-trump

MPI. (n.d.). Comprehensive Immigration Reform. Retrieved from: https://www.migrationpolicy.org/topics/comprehensive-immigration-reform

PENN WHARTON. (2016, June 27). The effects of immigration on the United States' economy. University of Pennsylvania: Budget Model. Retrieved from: http://budgetmodel.wharton.upenn.edu/issues/2016/1/27/the-effects-of-immigration-on-the-united-states-economy

Varas, J. (2017, March 20). How immigration helps U.S. workers and the economy. Retrieved from: https://www.americanactionforum.org/insight/immigration-helps-u-s-workers-economy/#ixzz5mBbeOVZ3