Immigration and US economy

May 17 06:30 2007 Max Weber Print This Article

Immigrants – are citizens of one country which settle on the territory of another (country permanently or temporary) because of political, religious, economic and other reasons.

The population of United States of America consists of representatives of many nations. Of course its economics is affected much by the presence and activities of immigrants. Although many people consider that immigrants affect the economics of US in extremely negative way,Guest Posting indeed, they do not. I will try to scatter the most widespread myth about negative effect of immigrants and illustrate the positive influence of immigrants on the US economics.

“Immigrants are drain on the US economy” – many people say. But this statement is completely senseless, although some negative effects exist. In order to prove that I can give the following evidences: 1) Immigrants is the cheap work force. Immigrants often earn less than the minimal wages provided in US or earn exactly this minimum. So only few Americans will agree to work with such law wages while performing an unskilled job. 2) Often immigrants are occupied with self-employment. Thus they create new workplaces, although they create these places for their nationals as a rule, and their self-employment stimulate the development of small and medium business. So in some way immigrants reduce unemployment level in US. Also many famous and prosperous companies were established by immigrants e.g. Sun Microsystems was founded by Scott G. McNealy – Irish immigrant. 3) If an employer hires illegal immigrants he pays them much less than the minimal wages in US. Such employer reduces his costs and it results in reduced price for his products, what directly benefits the US customers. 4) Services rendered by immigrants often much cheaper than by Americans. It also directly benefits US customers and stimulates free competition on the market, which leads to the healthy economics. 5) Immigrants’ labor makes a direct contribution to US GNP and purchasing capacity. 6) Immigrants pay more taxes than the benefits they receive. Here is some information that I have found: “…New data suggests the undocumented pay about 46 percent as much in taxes as do natives, but use about 45 percent as much in services. … Through their tax payments, they help finance the costs of schools, health care, roads, welfare payments, Social Security, and the nation’s defence[1]”.

To illustrate this quotation I can give the following examples: - most immigrants that come to US already have education, necessary vaccinations, medical examinations etc and all these services were paid by immigrants’ native country.  The tax rate on income for immigrants (not for Green Card holders) is considerably larger in comparison with Americans.  

And the last significant argument – is that many people consider that immigrants take away the work places from US workers – I think it merits special emphasis and thereby I decided to split it into a separate paragraph. From the first look it indeed looks so because “Nearly three out of every 10 jobs in the United States are being filled by immigrants[2]” – the latest researches state. So immigrants fill 30% of available jobs in US and thus leaving US citizens without work. But such thoughts can be in one’s mind only incidentally (I mean without thorough thinking).

While making investigation on this issue I have established the following facts: 1) Immigrants usually lack of language – this is incontestable fact. Thus they can get only unskilled and underpaid jobs. At the same time Americans do not want to do that job so immigrants with the lack of the language fill unclaimed by Americans jobs. 2) Immigrants usually come from less developed countries than US in order to earn money. So even when an immigrant has the higher education and abundant experience his probability to get skilled job is very little because he could not work at full power in US, where employees provided with the most latest achievements of science and engineering. 3) Immigrants come only with the permission of US, which do invite only those people who are indeed required (I do not include illegal immigrants, refugees and asylum seekers) and thus immigrants fill free cells in US labor market. I also want to mention that the demand on high-tech visa workers increases[3] and thereby US attract really good workers.

Finally, I want to conclude that in general immigrants more affect US economics in positive way than in negative (it also exists and can not be forgotten). Immigrants make a direct contribution to GNP and budget, fill the free cells in labor market, create new workplaces, stimulate the development of small and medium business and free competition, reduce unemployment level, increase the supply on the labour market and according to the forecast of US government by the 2026 there will be a shortage of about 20 million workers in US.  




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Max Weber
Max Weber

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