Contrary to many politicians’ criticisms, immigration can contribute to an increase in the GDP (Gross Domestic Product) in the US. A new report from the Congressional Budget Office (CBO) estimates that immigrants could raise the United States’ GDP by up to $7 trillion over the next decade.
The study, published this Thursday (9th), analyzed the impact of both legal and illegal immigration on the American economy, taking into account factors such as workforce, consumption, and investment.
The CBO concluded that immigration would have a significant positive effect on economic growth in the US. An increased workforce would boost productivity and competitiveness, while increased consumption and investment would stimulate aggregate demand.
US immigration data
Immigration is a crucial issue for the United States, having had a significant impact on the country’s demography, economy, and culture for decades.
According to the International Organization for Migration (IOM), the latest survey conducted in 2022 showed that at least 15% of the population residing in the United States was an international migrant, which represents about 50 million people.
The World Migration Report detailed that the US has been the main destination chosen by immigrants since 1970.
Among the nationalities of the immigrants, the majority are from Mexico (25%), followed by China (6%), India (6%), the Philippines (4%), and El Salvador (3%).
Regarding immigration status, 58% of immigrants are naturalized, 26% are permanent residents, and 16% are undocumented in the United States.
According to research conducted in 2022, an increase in legal immigration resulted in a 20% rise in employment visas in the country, with the most sought-after American states being California (25%), Texas (11%), Florida (9%), New York (7%), and New Jersey (5%).
The benefits of immigration in the US
According to the CBO report, legal immigration is estimated to increase the workforce in the United States by 10% by 2033.
Moreover, immigrants often fill vacancies in key sectors of the American economy, such as agriculture, construction, health care, and technology.
The CBO notes that can help alleviate labor shortages in sectors that are struggling to find skilled workers.
Not to mention that immigration stimulates innovation and entrepreneurship, as immigrants are more likely to start businesses than American citizens. The CBO estimates that immigrants founded 40% of the startups in the US between 2006 and 2012.
Thus, the benefits of immigration would be widely distributed across American society. Immigrant workers would increase the income of all Americans, including natives, while the opportunity for immigration would help reduce income inequality and poverty.
Recommendations
The CBO recommended that the US government adopt policies that facilitate legal immigration and protect the rights of immigrant workers.
The study also highlighted the importance of investing in education and training to prepare American workers for the challenges of a globalized economy.
Reactions
The CBO report was met with enthusiasm by immigration advocates. “This study confirms what we have long known: immigration is good for the American economy,” said David Bier of the Cato Institute. “It’s time for Congress to adopt policies that open the doors to more immigrants.”
On the other hand, immigration critics argued that the CBO study underestimates the costs of immigration, such as the impact on public services and national security. “This study is just another example of the CBO’s pro-immigration propaganda,” said Jessica Vaughan of the Center for Immigration Studies. “The truth is that immigration costs Americans billions of dollars each year.”
The debate on immigration in the US
The debate on immigration is one of the most heated in the United States. Advocates argue that immigrants are essential to the American economy, while critics argue that immigration endangers the jobs and security of Americans.
This CBO study provides new information for this debate, showing that can have a significantly positive impact on the American economy.
However, the study also highlights the challenges that immigration can present, such as a possible decrease in wages for workers with low levels of education and the costs to the government, as immigrants are entitled to use public services, such as education and health.
Conclusion
The CBO study is an important contribution to the debate on immigration in the United States, providing valuable information on the economic impacts of immigration.
However, the study does not resolve the debate on immigration. The decision on how to handle immigration will continue to be a challenge for the US government!