The impact of the influx of immigration to United States of America

The impact of the influx of immigration to United States of America

Thesis Statement

In this paper, we have discussed the impact of the influx of immigration to United States of America. In particular, we review the potential benefits resulting from rejuvenation population with positive effects on social security, employment, aggregate consumption, fiscal policy and monetary and economic growth. We also identified and quantified the importance of the main factors economic incentives of immigration to the United States. Finally, the reasons indicated why economic immigration would become increasingly important in the country in the coming years and it would be consider as a very strong trend for the future.

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 . 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. This economic contribution is providing several benefits to overall nation in America.

Tax Contribution in US Economy

According to ...