The most neglected fact in immigration economics

[David_42]

Interesting.
The most neglected fact in immigration economics

Donald Trump not only wants to build a wall across the US-Mexico border, he wants to find a way to make Mexico pay for the construction of the wall. It's part and parcel of Trump's bombastic nationalism shtick. But it raises an obvious question: If stopping people from moving here is so important, why quibble about the money? And that, in turn, raises the single most neglected point about the economics of immigration: Even the studies by the most immigration-skeptical economists show that immigration raisesthe incomes of native-born Americans on average.

Don't take my word for it. Ask George Borjas, who tends to be far and away the leading economist in the immigration-skeptical camp. He says the current level of immigrant workers in the United States raises US GDP by about $1.6 trillion relative to where it would be in a zero-immigration universe.

But he cautions (emphasis added):

Of the $1.6 trillion increase in GDP, 97.8 percent goes to the immigrants themselves in the form of wages and benefits; the remainder constitutes the "immigration surplus" — the benefit accruing to the native-born population, including both workers, owners of firms, and other users of the services provided by immigrants.

Wow — 97.8 percent! That sure sounds like a high number.

But the key thing about it is that 97.8 percent is less than 100 percent. Which is to say that immigrants — unlike, say, thieves — are not imposing any net costs on the native-born. In fact, while drastically raising their own income they are slightly raising everyone else's income. And that's according to an economist who thinks high levels of immigration are bad public policy. Other studies by more immigration-friendly economists see considerably larger gains to the native-born. But the whole argument is about how big the net economic benefits to the native-born are, not whether they exist.

 

[CrusaderFrank]

Um yeah. So why don't they grow Mexico's economy like that?

 

[Luddly Neddite]

Um yeah. So why don't they grow Mexico's economy like that?

You really don't know?

Educate yourself.

I've written extensively about this in the Immigration forum. Or you could actually read something besides Brietbart.

 

[defcon4]

Are we forgetting that illegals send part of their money back to their home countries. Pay no taxes, we educate their children, providing emergency room care and some instances welfare benefits? I wonder if the study actually accounted for those factors also.