How does immigration impact the U.S. economy? – The Fulcrum

Hill was policy director for the Center for Humane Technology, co-founder of FairVote and political reform director at New America.

The last comprehensive immigration reform was enacted almost four decades ago, when Ronald Reagan was president. So many Americans were pleased when a bipartisan group of senators announced they had agreed on a compromise bill that would provide for both a more secure and more humane border. It seemed like a win-win.

But then former President Donald Trumpworked behind the scenes to kill the legislation because he did not want to give a political victory to President Joe Biden. Its not the first time that sensible immigration policy got strangled by partisan gamesmanship. Such congressional battles make it harder for the public to know what good policy even looks like.

Unfortunately many important economic questions related to immigration rarely get discussed. How does immigration actually impact our economy and nation? What are the pros and cons of having large numbers of newcomers crossing our border? After all, we are a nation of immigrants. If it wasnt for immigration, most of us wouldnt be here. Or, is it different this time?

Heres the key thing to know about immigration: The reason its so controversial is because how it affects you greatly depends on who you are.

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Are you a business owner who needs to hire lots of blue-collar workers? If so, then immigrants from south of the border are a blessing, because they make it possible for you to employ cheaper labor. That could well be why a number of Republican business leaders in places like Texas, Arizona and California did not support Trumps anti-immigration policies.

Are you a blue-collar worker? Then you might perceive that hordes of immigrants who are willing to work cheaply are threats to steal your job.

Or maybe youre a parent with schoolchildren who has recently seen a rise in immigrant kids. Then you may worry about your taxes having to pay for a surge in teacher hiring, translation services and more.

Are you worried about escalating prices on your grocery bill? Then you might welcome more workers from across the border who will pick your food for lower wages. Most Americans arent willing to work at hard labor jobs like that.

Or perhaps you are an economist, worried about a declining population, worker shortages, dependency ratios and falling labor productivity. If so, then you probably welcome a certain number of new workers, especially skilled labor that can make businesses more productive.

Are you the CEO of a tech company? Then you favor the H1-B visa laws that allow migrants from places like India and China to fill jobs for computer programmers and software designers. Those imported workers come cheaper than Americans yet have top-notch skills for creating great products, like your smartphone and apps.

Or maybe you are a politician, looking to get reelected? Then you might be tempted to bash immigrants and attack political opponents as soft on immigration as a way to score points with voters.

The point is, what you believe about immigration is very dependent on where you sit. Many people fit in two or more of the boxes mentioned above, making matters complicated and personal. Consequently, the economic impacts of immigration often are colored by larger cultural and political concerns.

Study after study clearly shows that large increases in immigration have a tendency to lower wages in the mostly blue-collar jobs where those immigrants work. But the effect usually is temporary, according to the National Academies of Sciences, Engineering, and Medicine.

Over the longer term, new workers provide employers with opportunities to expand their businesses, increase production and add jobs to service new customers. Immigration actually grows the economic pie over time, and most of the negative wage or employment impacts fade away. Moreover, according to the Brookings Institution, immigrants usually work different jobs than native-born workers, which often results in lower prices for widely enjoyed services like child care, food preparation, house cleaning and construction.

Here are some other things about immigration that many people dont know:

Immigration will always be a challenge for a modern democratic society. A country can only absorb so many newcomers so fast, its not easy to fully integrate new arrivals. These are all major factors in determining whether the pluses outweigh the minuses. Given the complexity of the issue, what is needed from our leaders is not simplistic divisive rhetoric but a pragmatic approach that carefully weighs all factors.

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