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Immmigrants; The economic argument for them
Topic Started: Jun 1 2006, 07:28 AM (223 Views)
big al
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Evans On The Economy -- More Immigrants
The economic arguments are compelling for the United States to welcome immigrants, provided they become citizens.
By Michael K. Evans
June 1, 2006


Which U.S. state currently has the biggest cash surplus?

Answer: Florida.

And which state has led in job creation for each of the past 41 months?

Again, Florida.

And which is the only large state with an unemployment rate more than 1% below the national average?

You guessed it. Florida.

And which state has the largest percentage of recent immigrants in its population?

Actually, it’s California. But Florida is second.

I realize there are arguments on both sides of the immigration issue, and I’m not going to take a stand pro or con on the social aspects. But on the economic aspects, the anti-immigration people are dead wrong. Immigrants do not take jobs away from American citizens. Immigrants do not reduce the overall wage rate. And in a state that is sensibly run, immigrants do not increase the budget deficit. The figures are undeniable.

It’s true that Florida has a few other things going for it, such as no income tax and a generally sunny climate, except during hurricane season, that attract rich, older folks with lots of disposable income. Nonetheless, the unemployment rate in the southeast part of the state, where most of the new immigrants land, recently touched 3%, compared with a national average rate of 4.7%. With the single exception of Hawaii, no state has a lower unemployment rate. Conversely, the states with the highest unemployment rates -- Mississippi, Kentucky, and South Carolina -- are among the states that are least friendly to recent immigrants.

Some will argue that immigrants take away jobs. In fact, the opposite is more likely to be true. By filling jobs that are generally considered undesirable, they permit upward mobility for those who would otherwise have to fill these positions. Of course, if the unemployment rate is high, that doesn’t work. But at least in Florida, employers claim there are three times as many jobs as there are qualified applicants. And we’re talking medium-level management jobs, not washing dishes and cutting lawns.

Others will argue that immigrants are a drain on budgets because they don’t pay taxes. That’s because the government doesn’t allow them to register. If they could sign up legally, the vast majority of them would gladly pay taxes, including Social Security taxes. As I have pointed out previously, when all taxes are considered, almost half of everyone’s paycheck goes to taxes. So if the average immigrant earned $20,000 per year, about $8,000 of that would go to federal, state, and local taxes, if the immigrants were properly registered. The only drain on the budget is people who, for one reason or another, aren’t working. There are very few immigrants in that category.

One of the silliest arguments around, which many other economists have already shown to be fallacious, is that immigrants depress wage levels. The work of Harvard economist George Borjas, which is responsible for many of these canards, has already been widely discredited. In fact, by creating demand, immigrants boost wage rates by increasing the overall demand for labor as they use their paychecks to buy goods and services.

Next to providing the appropriate level of national defense to keep our country safe, the most important job the government has is implementing policies to ensure that everyone who wants to work can find a job. When that happens, there are plenty of jobs for immigrants as well as those of us who have already been here a while. Let immigrants in -- and, assuming they take steps to become proper citizens -- let them stay.

Michael K. Evans is chief economist for American Economics Group, Washington, D.C., and president of the Evans Group, an economics consulting firm in Boca Raton, Fla. Also see: Economic Outlook and Financial Market Outlook: Mike Evans' new blogs on the economy and stock market.

More Immigrants


Big Al
Location: Western PA

"jesu, der simcha fun der man's farlangen."
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John D'Oh
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Immigrants don't need to become citizens to provide a positive contribution. However, they do need to enter legally. I'm not a US citizen, but I sure do pay taxes.
What do you mean "we", have you got a mouse in your pocket?
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Jolly
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Why has Florida grown?

Cheap land, snowbird money, and a climate receptive to business.

I think immigrants come way down the line....

The main obstacle to a stable and just world order is the United States.- George Soros
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Rick Zimmer
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Jolly
Jun 1 2006, 08:05 AM
Why has Florida grown?

Cheap land, snowbird money, and a climate receptive to business.

I think immigrants come way down the line....

There is a strong correlation between the strength of economies of the various states and those states which have the largest group of immigrants -- legal and illegal.

Given the argument that immigrants -- especially illegal ones -- are an economic drain, one would expect those states with the largest groups of illegal immigrants to be those with the weakest economies. Quite the oppositie is true -- indeed, the direct opposite is true.

To argue that illegal immigration is an economic drain in one breath and then to discount it as an economic force and argue other factors are in play that make these states economically strong in the next breath is, at least, inconsistent logic.
[size=4]Violence is incompatible with the nature of God and the nature of the soul -- Benedict XVI[/size]
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AlbertaCrude
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Pssst, Rick....this thread is about legal immigration.
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Rick Zimmer
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AlbertaCrude
Jun 1 2006, 08:44 AM
Pssst, Rick....this thread is about legal immigration.

Pssst, AC -- it doesn't matter.

The states with high percentages of legal immigrants are also the states with high percentages of illegal immigrants.

Immigrants -- legal and other wise -- are a major economic benefit to those states that have them.
[size=4]Violence is incompatible with the nature of God and the nature of the soul -- Benedict XVI[/size]
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AlbertaCrude
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I disagree- it does matter. Legal and illegal immigrants are two entirely different types of resident.
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John D'Oh
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MAMIL
To be a legal immigrant you normally need to meet certain criteria. To be an illegal immigrant you need to be able to run quickly and quietly. Unless our Special Forces are recruiting from this pool, this skill isn't normally a whole lot of use in the business community.
What do you mean "we", have you got a mouse in your pocket?
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Aqua Letifer
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ZOOOOOM!
John D'Oh
Jun 1 2006, 09:45 AM
To be a legal immigrant you normally need to meet certain criteria. To be an illegal immigrant you need to be able to run quickly and quietly. Unless our Special Forces are recruiting from this pool, this skill isn't normally a whole lot of use in the business community.

No, but being sneaky and secretive and basically snake-like is.
I cite irreconcilable differences.
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Rick Zimmer
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AlbertaCrude
Jun 1 2006, 09:07 AM
I disagree- it does matter. Legal and illegal immigrants are two entirely different types of resident.

From the standpoint of economic impact, it matters little.

In other areas, perhaps it matters more. But from the effect they have economically, it matters little to the apartment owner or the store owner or the service provider whether their business is making money from the patronage of a legal immigrant or from an illegal immigrant.
[size=4]Violence is incompatible with the nature of God and the nature of the soul -- Benedict XVI[/size]
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AlbertaCrude
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So now you are trying to compare tourists and illegal immigrants? Tourists, like legal immigrants, usually enter at the border legally and normally remain lawful throughout the duration of their limited stay in the country.
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Rick Zimmer
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AlbertaCrude
Jun 1 2006, 10:54 AM
So now you are trying to compare tourists and illegal immigrants? Tourists, like legal immigrants, usually enter at the border legally and normally remain lawful throughout the duration of their limited stay in the country.

Yep, tourists are good for the economy as well.
[size=4]Violence is incompatible with the nature of God and the nature of the soul -- Benedict XVI[/size]
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