Benefits of Immigration Reform in a Bear Market Economy

While Obama has made clear that fixing the economy is his number one priority, a summary of recent research released by the Immigration Policy Center (IPC) shows that fixing the broken immigration system could bring us one step closer to economic recovery.

As right-wing pundits falsely claim that immigration reform would cost the American public ““billions,” available research suggests that — had the Comprehensive Immigration Reform Act of 2006 passed — it would have generated a much needed $66 billion in new revenue during 2007-2016 from income and payroll taxes, as well as various administrative fees. Workers with legal status earn and spend more, as evidenced by the effects of the 1986 Immigration Reform and Control Act (IRCA).

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Immigration Can Speed Economic Recovery

Diana Furchtgott-Roth, former chief economist at the U.S. Department of Labor, is a senior fellow at the Hudson Institute.

It’s welcome news that President Obama will turn his attention to immigration reform this year, as was announced on Wednesday by Deputy Assistant to the President Cecilia Muñoz. Economic recovery will happen more quickly if both high- and low-skill immigrants are permitted to enter the United States and work legally.

Two years ago, when Congress was considering comprehensive immigration reform, both President Bush’s Council of Economic Advisers and the Congressional Budget Office, headed by Peter Orszag, an economist closely identified with the Democratic Party, estimated that the benefits of additional immigrants outweighed the costs. If Congress allowed more immigration, then American taxpayers would come out ahead financially.

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Immigration Crackdown Hurts Prince William County Economy

Undocumented Immigrants Save Social Security

Bet you won't see this on Lou Dobbs

Immigration is good for the financial health of Social Security because more workers mean more tax revenue. Illegal immigration, it turns out, is even better than legal immigration. In the fine print of the 2008 annual report on Social Security, released last week, the program’s trustees noted that growing numbers of “other than legal” workers are expected to bolster the program over the coming decades.

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Public Opinion

A collection of posts and resources regrading public opinion on the issue of immigration.

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Republicans and Immigration

Border State Republicans

Leader of Extremist Group Explains Election Results

GOP Driving Hispanics Away with Anti-Immigration Push

Florida GOP Primaries -A Harsh Immigration Stance a Liability

Public Internet Interest in Immigration

The more contact a native born American has with immigrants, the more positively they view immigration.

Psychology of Immigration Fears

Immigrants in Super Tuesday States

The Immigration Prof Blog has a great post on the impact of immigrants on Super Tuesday states, many of which have large immigrant populations.

Beyond the voting booth, there are vigorous arguments over whether immigrants cost or contribute. Restrictionists argue that immigrants are bad for the state economy, but the facts prove otherwise. Study after study documents the economic contributions of immigrants in "Super Tuesday" states. A recent report from the Americas Majority Foundation shows that states with large immigrant populations have stronger economic health.

According to the U.S. Census Bureau, there are 734,227 Asian-owned businesses and 851,250 Hispanic-owned businesses in the 24 "Super Tuesday" states.

Healthy States and Immigration Rates: A 2008 study by the conservative Americas Majority Foundation found that the 10 states with the highest percentage of immigrants, including "Super Tuesday" states, Arizona, California, Massachusetts, New Jersey and New York, experienced the highest Growth State Product.

The study found that a large immigrant population and recent increases in immigrant population are associated with elevated levels and growth rates in gross state product, personal income, per capita personal income, disposable income, per capita disposable income, median household income, and median per capita income.

Economic Impact Assessed: Below is a snapshot of some of the recent research on the impact of immigrants in a handful of "Super Tuesday" states.

* Arizona: A 2007 study by the University of Arizona's Udall Center for Studies in Public Policy concluded that "the total state tax revenue attributable to immigrant workers was an estimated $2.4 billion-even balanced against estimated fiscal costs the net 2004 fiscal impact of immigrants in Arizona was positive by about $940 million."

* Arkansas: A 2007 study by the Urban Institute found that "...without immigrant labor, the output of the state's manufacturing industry would likely be lowered by about $1.4 billion-or about 8 percent of the industry's $16.2 billion total contribution to the gross state product in 2004."
* New York: A 2007 study by the Fiscal Policy Institute concludes that New York's immigrants are responsible for $229 billion in economic output in New York State or 22.4 percent of the total New York State GDP.

* Georgia: A 2006 study by the Georgia Budget and Policy Institute estimated that an average undocumented family in Georgia contributes between $2,340 and $2,470 in state and local sales, income, and property taxes combined.

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The Economic Impact

Want to understand the economic impact ?

Here is a collection of articles on the economics of immigration. Read, educate yourself.



Immigration- The Demographic and Economic Facts-Start with this one, it's a good summary

Immigrantion Can Speed Economic Recovery

Data Supports Benefits Of Immigration Reform In A Bear Market Economy

The Economic Impact of Immigration

Arizona economy bracing for immigration crackdown

Accessing the Economic Impact of Immigration at the State and Local Level

Undocumented Immigrants as Taxpayers

Open Up - Article in The Economist


Yes, Immigration May Lift Wages

Immigrants and the Arizona Economy

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"In construction alone, Judith Gans of the University of Arizona has estimated that a 15 percent cut in the state's immigrant workforce would result in direct losses of about 56,000 jobs and some $6.6 billion in economic output. The direct loss to state tax revenue would be approximately $270 million. The study, and others like it, including in Texas, refute the arguments that illegal immigrants are an overall burden on state economies because of the education, health care and other services they require; in fact they contribute heavily to economic growth."

You know what, I'm going to tell Juidth Gans, her PhD, and years of experience studying the Arizona Economy to shove it. I'm putting my faith in what TV and radio talk show personalities say.

Have no fear Arizona, your economy is for the most part safe............your immigrants are another story.

"Reasonable suspicions exist that many companies will continue hiring and paying illegal workers off the books to evade the law's sanctions, which may give rise to a sizable underground economy and encourage exploitation of vulnerable workers."

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Immigrants are Good for the Economy

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Survey of Top Economists

These are the full poll results:

On balance, what effect has 20th-century immigration had on the
nation's economic growth?


Economists     (percent)

Very favorable       80

Slightly favorable   20

Slightly unfavorable --

Very unfavorable     --

Don't know           --


What level of immigration would have the most favorable impact on
the U.S. standard of living?


Economists     (percent)

More           63

Same number    30

Fewer           0

Don't know      7


Do you feel that recent immigrants are qualitatively different in
economic terms than immigrants in past years?


Economists               (percent)

More negative impact     11

About the same impact    76

More positive impact     4

Don't know               9


What impact does illegal immigration in its current magnitude
have on the U.S. economy?


Economists                        (percent)

Illegals have a positive impact    74

Illegals have a neutral impact     11

Illegals have a negative impact    11

Don't know                          4

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