Wednesday, April 24, 2013

Boosting Economy by giving undocumented Immigrants?

I came across a very interesting article how granting a undocumented immigrants a path to a citizenship could help improve the economy.  According to the article, it talks about how as much as 11 million undocumented immigrants are in the United States and if we grant them all US citizenship they would be able to add $1.4 trillion to the country's economic growth and also create more than 200,000 jobs and also boost a tax revenue by more than $180 billion in the next decade.  Sounds like that is what exactly America needs right now during this touch economic crisis doesn't it?  According to this article a study from the Center for American Progress shows that "undocumented immigrants currently pay less in taxes than they would as citizens, so granting them citizenship would bring in additional revenue.  The article suggest that not only would earning more increase the amount of taxes they pay but it would also increase the amount of money the spend which will boost our economy by them spending more on food, clothing, housing, cars, and computers.  That spending in turn will stimulate demand in the economy for more products and services, which creates jobs and expands the economy."Also according to the article the Immigration Reform Act in 1986 which granted legal status to about 2.7 million undocumented immigrants benefited in US home ownership because these illegal immigrants were earning more money.

What I remember from Tuesday's discussion class was regarding why people cross borders?  I am sure most of these illegal immigrants present in this country came here for mostly unskilled labors and some skilled labors as well as family reunions.  Do you really think that by giving these undocumented immigrants a path to citizenship is a best way to go about fixing our economy?

I would say there is absolutely no way we can go about granting undocumented immigrants a path to citizenship because we don't know how many of these are skilled and unskilled workers.  Some of these undocumented immigrants could be students who came to US legally but after completion of their studies decided to stay here but cannot find a job.  While I do agree that immigrants in general whether legal or illegal helps boost tax revenue and help country boost economy I am sure there is gotta be a better way to fix our economy than putting our country under national threat.

12 comments:

  1. Kalsang,you bring up some valid points on the immigration argument. I just wanted to clarify what you meant by 'national threat' given these immigrants are already here.How would citizenship make them a threat? I would agree that this is not the only path to fix the economy though it would definitely recoup a lot of tax dollars.I think there is a place for both skilled and unskilled immigrants in US society, given that the US is a country entirely built on immigrants.Whilst it is hard to ascertain exactly under what circumstances each illegal immigrant came under,it is imperative that legislative progress is made to solidify citizenship status.

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    1. Grant, I know what you mean by how can a citizenship make them a threat? For instance I think I was thinking of the recent Boston Marathon bombing incident. What I mean by that is not every immigrant who gets a US citizenship will do anything to harm this country but US government also need to be cautious towards the path of citizenship. The younger suspect in the Boston Marathon bombing just became US citizen a year ago. Thank you for clarifying though Grant.

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  2. I don't necessarily believe that welcoming immigrants into the United States is necessarily the best way to fix our economy per say however as we talked about in class, there is the opportunity for entrepreneurship. If immigrants (included unskilled) are able to come over here take on jobs, work hard, and start their own businesses that can stimulate the economy, then sure it's a good thing. I do believe there should be restrictions and limits on who can migrate to other countries and who can legally work.

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  3. I would agree with the article stating that it might be a good idea to grant illegal immigrants citizenship. It could defiantly help boost the economy but it is no way to fix all the economic problems. Most of these people are crossing the borders hoping to have better opportunities in the US. And like we learned in class today, many people are sending money back to their native countries. But granting all these people citizenship to the US could have a downward affect. Meaning that the workers families will more likely move out of their native country to the US and this could potentially have a negative economic impact on the mother country.

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  4. I find this argument so new and so ironic, quite honestly! I have never once thought or heard of "Boosting Economy by giving undocumented Immigrants?" argument, but I have to say I like it. I think America has faced serious issues in the past few years, including immigration issues, a stagnant economy, and unemployment issues. So, the idea of stimulating the economy, tackling some unemployment, and troubleshooting some of the illegal immigration issues, is actually enticing. I think American leaders need new innovative ways of thinking, such as this argument, to really make strides toward recovery and a better America. I really like your point, Elena, from the discussion in class, the remittances sent back to families could have major negative effects if these citizens are granted full citizenship. It also makes me think, what will actually happen to the US economy and then how would the remittance receiving countries be affected? This is an interesting argument, thanks for posting it!

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  5. I question the findings which state that granting them legal status would increase their wages and thereby increase the demand for goods. Wages are based on how productive the individual is at the workplace. By simply giving the undocumented worker legal status does not necessarily mean they become more skilled and therefore should be compensated at a higher wage for their labor. What are the costs associated by turning all of the undocumented workers to legal workers? If undocumented workers currently hold jobs which pay at or below minimum wages since they are not protected under labor laws, wouldn’t all of the new legal workers be enticed to seek welfare to supplement their low wages therefore increasing the cost to the state and diminishing the returns to the overall economy?

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  6. I believe a form of guest visa would be a pretty good middle ground for this situation. A moderately "free" level of guest worker visas would not only help to get many undocumented workers on the books it would also increase the personal safety of those workers. For example, workers crossing the Mexican border undergo serious hardship and spend lots of money in order to make it across with the guidance of "coyotes." Obviously the demand for labor has made it attractive to risk the crossing even given the dangers. Maybe a slightly higher tax rate for guest workers could even help boost the government budget while the influx of labor is generally a good thing for the economy. After all increased labor also translates to increased consumer demand. I'd guess that many workers would rather pay even a relatively high guest worker tax rate over the thousands of dollars paid illegally to coyotes in addition to the dangers of the border crossing. But all this is hypothetical, on paper these things may look good but the truth may be far from it. I'd be very interested to look at a country that adopted such policies and see how it turned out.

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  7. From a completely different standpoint of economics, I'm sure that when you mention 'national threat,' I'm assuming you mean in terms of security. After the bombings that occurred in Boston from two foreigners, I believe that documentation and Visas will increasingly become more monitored by the US Government. While I do understand the additional benefits that it will provide for our economy, this issue is largely a problem with security as more and more undocumented immigrants come in, which could potentially give a 'cover' for potential terrorists/drug cartels to set up shop in Americas cities. While I do not believe that all illegal immigrants are inherently hostile and poised to bring about destruction, I do believe this to be a much more prevailing issue than economics.

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  8. I think a good way to work around something like this is to issue temporary work visas that encourage people to see what it is like to move into the states and allow them to work and pay taxes on their wages. After this temporary period is over I think it would make sense to allow these immigrants to opt into full citizenship.

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  9. I have read similar studies in the past. The difference doesn't seem to stem so much from paying less taxes than citizens, which I think is a widespread misconception, but rather the difference in earning potential that exists between the undocumented and the citizenry. I know a large pro for the passing of DREAM act like legislation was that more undocumented students would not be foreclosed from pursuing higher paying jobs and degrees. This in turn increases the likelihood of a higher salary and would thus increase not only spending in the economy but tax revenue as well. It is certainly an interesting notion.

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  10. While, i think the us should have a better path for undocumented workers I do not believe that we should grant citizenship to all the undocumented workers in the United States. Doing this does not make sense because while this would benefit workers by allowing them to enjoy better workplace rights and engage in the political system and would also increase government revenue it will also increase dependance on the government. It would do this twofold, first by increasing the number of people that the government assists due to poverty. Most undocumented workers are working near the minimum wage or below it, therefore they are most likely at or near the level of income where they could qualify for government benefits which would increase government expenditure. Additionally, this would make employers pay minimum wage to undocumented workers which could cause increased unemployment and increase dependance on the government.

    As a side note I do not believe that making these undocumented workers poses any additionally threat to united states national security. These workers are already in the US and if they are going to commit terrorists acts granting them citizenship probably wouldn't change their decision.

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  11. In terms of national security, I think we should be cautious about conflating the actions of a select few with the masses. The vast majority of immigrants are not hostile or criminal. Not to mention, the Boston bomber could have easily been a U.S. born citizen. Like the documentary we watched in class, perceived threats to our nation are often a matter of wanting to preserve some notion of national identity and cultural purity. And I don't think that some ill-informed resistance to change, driven by unfounded stereotypes, should determine immigrants' fate in this country.

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