How Illegal Immigrants Influence the Economy

How Illegal Immigrants Influence the Economy
How Illegal Immigrants Influence the Economy

Immigration is one of the hottest topics in America. It’s a complicated issue with many working parts; adding illegal immigrants into the picture brings in strong emotions and more confusion on how to interpret the data. The left claims there are no negatives to any form of immigration. Is that really the case?

Hot Points

  • We need to understand the impacts of immigration in itself before we talk about illegals. It starts with basic economics – supply and demand. Prices of a product go down when the supply increases. Similarly, worker wages go down when the available workforce increases.
  • History shows that a 10 percent increase in workers results in a minimum of 3 percent reduction in wages. This isn’t merely a short-term symptom; the wage drop remains even after the economy has adjusted. Native workers tend to lose out when immigration inflates these numbers.
  • There’s a catch; the economics must come full circle. Lower wages means employers have more resources available to expand and improve their business. New workplace equipment, better workplace conditions, new product lines and other company expansions are only a few courses of action an employer could take.
  • But it isn’t just about employment. Immigrants receive more government assistance than the native population. Those services tally up to a massive $50 billion – which falls on the shoulders of working taxpayers. That’s significant.
  • Remember the drop in labor wages caused by immigrants? It’s estimated that drop frees up around $50 billion and puts it in the hands of employers. That means the net sum of money produced and consumed by immigrants roughly zeroes itself out. In practice, immigration acts as a sort of “wealth redistribution” program that benefits business owners.
  • That picture alone is more than the left tells us. Immigration isn’t something that works in favor of all Americans; it hurts the working class (specifically low-skill labor), and they’re the ones that need more opportunities. We’ve only covered legal immigrants. What about the rest?
  • Around 10.7 million illegal immigrants, or 3.3% of the total population, were living in the US in 2016. America’s workforce includes an estimated 7.8 million unauthorized immigrants (about 4.5 percent of the total.) These individuals that cross the borders illegally are an additional drain on our economy because they don’t pay taxes. Then, more money comes out of the taxpayer’s pocket for the government aid programs that benefit those that forcefully enter the U.S.
  • Illegal immigration isn’t a positive force on our country. There are winners and losers in every deal. The losers are the hard-working native population that’s already struggling to make ends meet while many immigrants are sending money “back home” rather than spending it here.