Black Friday Update – What is the economic value of allowing immigration to the U.S.?
In case you haven’t heard – Black Friday is quickly approaching! If you are like many others, you already have your calculator out figuring just how much you are going to spend this holiday season. This got us thinking about “value” – not just in the “what would you pay for something” context but in the “what does something bring to the table” context.
The White House recently posted an in-depth analysis of the many economic benefits immigrants bring to our country. Here are five of those benefits that the article outlined:
Immigration strengthens the overall economy.
- Independent studies show that immigration adds more high-demand workers to the labor force, increase work productivity, and lead to a greater number of entrepreneurs starting their own businesses in the U.S.
- The nonpartisan Congressional Budget Office estimated that more immigration could lead to an increase in gross domestic product (the value of all good produced within a country) of 3.3% by 2023 and 5.4% in 2033. While these might not seem like large number it translates to an increase of $700 billion in 2023 and $1.4 trillion in 2033.
Immigration encourages more job growth and creation.
- Recent studies have found that immigrants promote productivity and innovation in the job market.
- According to the Fiscal Policy Institute, immigrant-owned small businesses generated a total of $776 billion in receipts and employed an average of 4.7 million people in the United States in 2007.
- The Partnership for a New American Economy found that immigrants started 28% of all new U.S. businesses in 2011 and that 40% of Fortune 500 companies were founded by immigrants or children of immigrants.
Immigration increases the productivity of workers and adds new protections for the American worker.
- The Congressional Budget Office study mentioned above also shows that wages will be .5% higher in 2033, an increase of $250 of income for the median American household, as a result of more immigration.
- More immigration also leads to wage reform in industries where workers are typically underpaid and taken advantage of.
Immigration can reduce the federal deficit, balance out an aging population, and strengthen Social Security.
- The CBO study also determined that an increase in immigration could reduce the federal budget by nearly $80 billion over the next twenty years.
- More immigration would help balance out a decrease in workers as the baby boom generation continues to retire, providing financial support for U.S. social insurance programs, such as Social Security.
- The independent SSA Actuary found that additional immigration will add nearly $300 billion to the Social Security Trust Fund over the next 10 years.
Immigration will contribute to our housing market recovery and strengthen industries such as technology, agriculture, and tourism.
- A joint study from The Americas Society / Council for the Americas and Partnership for a New American Economy states that the 40 million immigrants currently living in the United States have created $3.7 trillion in housing wealth.
- According to a study by the United States Department of Agriculture additional immigration would lead to an increase in agricultural output by between 0.2% and 2.0%.
If you are seeking to enter the U.S. for business or personal reasons, we hope you will consider our law firm to assist you. Schedule a consultation to speak with one of our Immigration Attorneys.