How Immigration Impacts on the USA Economy?

How Immigration Impacts on the USA Economy?

Introduction

Since the World War II, both legal and illegal immigration in United States of America has risen (Federal Reserve Bank of Atlanta, 1997) and throughout the last decade these immigrants have accounted for over a half of the labor force growth (White House Archives, 2007). The share of foreign-born population has become at its highest levels since 1930s. Many people believe and have perspective that recent surge in immigration has affected negatively on US economy and the availability of job for Native Americans, however, an economist at Federal Reserve Bank of Atlanta (1997), Madeline Zavodny, states that this impact is not as negative as people think. Behind this there are many causes like tax contribution, contribution in productivity growth and technological advancement, and others.

Discussion

The immigrants in USA have ignited the macroeconomic growth of the country, which is both unsurprising and uncontroversial because as economics indicates that more total output is yield by more total workers. Similarly, the immigrants also gets many benefits from working in United States, otherwise just few would have come here (White House Archives, 2007). According to the Chairman of Council of Economic Advisors Edward P. Lazear (2007), their review of an economic research of America indicates that immigrants not only support fueling up the economic growth of the nation, but they also have an overall positive impact on the native born workers income.

Immigration and the Size of US Economy

It is clearly depicted that immigration has increased the overall size of United States economy. As research indicates that in 2009 immigrants accounted for fifteen percent of all the workers (Camarota, 2010). The more the workers are, higher the GDP is. Research indicates that immigrants are twelve percent of overall US labor force, and these immigrants are likely to account for around ten percent of GDP or more than a trillion dollars annually (Camarota, 2010). However, it does not imply that native population of America benefits from it, rather the basic economic theories indicates that this huge increase in the economic activities benefits the immigrants themselves in the form of wages or other compensation. Thus, the immigrants are not benefiting directly to the native population, but they have increased the overall size of US economy. There are several benefits that this economic contribution is providing to overall nation in America.

Tax Contribution in US Economy

According to Zavodny, one of the economic advantages associated with immigrants is that those immigrants who arrived in US before age 25 they include in the net tax payers over their lifetime, based on the findings of National Research Council study (FRBA, 1997). Same research study points out that, immigrants actually contribute around $10 billion annually in the net fiscal benefit to the America, rather than being a drain on US economy.

Research shows that billions in taxes are paid by immigrants, not only legal but illegal immigrants as well (Ewing, 2012). Unauthorized immigrants pay taxes in different forms like sales ...