Okay.....just what is the net (benefits minus costs) economic impact of illegal immigration on U.S. GDP?
That you even made the statement above shows you don't actually know. The fact is that the answer can be found in a document published by one of the most anti-immigration conservative organizations around, the Center for Immigration Studies. Quite simply illegal immigration doesn't have a net cost, it yields a net gain to the U.S. economy.
The fact of the matter is that the net economic impact of illegal immigration is very small, but it's nonetheless positive, not negative.
- Illegal immigrants increased GDP by $395 to $472 billion. This “contribution” to the economy does not measure the net benefit to natives.
- The surplus from illegal immigration, or the net gain to US workers and employers exclusive of any labor income paid to the unauthorized immigrants themselves, is approximately 0.03 percent of US GDP.
- The immigration surplus or benefit to natives created by illegal immigrants is estimated at around $9 billion a year or 0.06 percent of GDP -- six one-hundredths of 1 percent.
- Although the net benefits to natives from illegal immigrants are small, there is a sizable redistribution effect. Illegal immigration reduces the wage of native workers by an estimated $99 to $118 billion a year, and generates a gain for businesses and other users of immigrants of $107 to $128 billion.
Economists have long known that immigration redistributes income in the receiving society. Although immigration makes the aggregate economy larger, the actual net benefit accruing to natives is small, equal to an estimated two-tenths of 1 percent of GDP. There is little evidence indicating that immigration (legal and/or illegal) creates large net gains for native-born Americans.
Even though the overall net impact on natives is small, this does not mean that the wage losses suffered by some natives or the income gains accruing to other natives are not substantial. Some groups of workers face a great deal of competition from immigrants. These workers are primarily, but by no means exclusively, at the bottom end of the skill distribution, doing low wage jobs that require modest levels of education. Such workers make up a significant share of the nation’s working poor. The biggest winners from immigration are owners of businesses that employ a lot of immigrant labor and other users of immigrant labor. The other big winners are the immigrants themselves. Illegal immigration continues to vex the public and policymakers.
Illegal immigrants have clearly benefited by living and working in the United States. Many business owners and users of immigrant labor have also benefited by having access to their labor. But some native-born Americans have also lost, and these losers likely include a disproportionate number of the poorest Americans.
Source 1 - CIS
Source 2 - MPI
It may be politically inauspicious to tell the whole story of both costs and benefits of illegal immigration, but that one tells only half of it -- the negative half -- does not make the other side of the story fail to exist for responsible voters and policy makers who want to be fully informed before arriving at conclusion. Now you can have fun parsing the matter any way you want, but there is no way the numbers make a net increase to GDP become a cost; it is a gain.
Note:
The sources for the economic points of the post above come from the two opposing "think tanks" on the matter of illegal immigration. They both say the same thing: illegal immigration yields a small net gain to the U.S. economy.