Wednesday, August 21, 2019

What does immigration cost you? Around $500B a year

A study by the National Academy of Sciences, Engineering, and Medicine says that immigration, not just illegal immigration, is a net positive for the US economy.

While that sounds good the problem is that immigration does so by reducing the cost of labor, ie driving down wages, which means that essentially American workers are subsidizing lower costs for businesses.

It seems odd that Democrats who are constantly raging against the 1% are so aggressively pushing massive immigration which transfers wealth from workers to owners.

The report says:

"Immigrant labor accounts for 16.5 percent of the total number of hours worked in
the United States, which, using this methodology, implies that the current
stock of immigrants lowered wages by 5.2 percent..."

The study doesn't quantify that 5.2% impact but a  Harvard economist that 5.2% reduction in wages amounts to $500 billion that US workers don't get due to reduced wages.

Clearly we the people don't view driving down wages as improving the economy in a positive way so it would appear that the study was written from the perspective of the 1%.

The impact of illegals would be lower than that of legal immigrants because illegals generally speaking have fewer job skills, less English proficiency and hence take lower paying jobs.

Also we need to keep in mind the welfare costs of both legal and illegal immigration given that immigrants of all kinds are significantly more likely to get welfare benefits than native Americans.

Clearly some immigration is good and too much immigration is bad but it's far from clear that the level of immigration we have now, especially of low skilled non-English speaking illegal immigrants, is good for America.

Sadly instead of being part of an intelligent debate about what level of immigration is best for Americans Democrats are declaring that anyone who isn't for open borders is a racist.

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