Study: immigrants have a positive impact on the US economy

Studies show that immigrants have a positive effect on the US economy. Writes about this Finance Yahoo.

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In his Migration Policy Institute policy brief, Georgetown University professor Harry Holzer detailed three major shifts facing the U.S. labor market over the next few decades—an aging workforce, automation, and alternative staffing—and argued that “increased immigration could provide many benefits to the US economy.”

The Penn Worthon Budget Model (PWBM) policy document contained similar findings indicating that "the greatest positive effect on employment will be an increase in the flow of immigrants."

Legislators are still trying to find a solution that will satisfy all parties while the Trump administration pursues its strict immigration policy.

On the subject: JP Morgan: more immigrants needed to grow US economy

A Gallup survey in June showed that 23% of Americans consider immigration to be a major problem in the country. This survey also showed that 76% of people consider immigration to be a good thing in the country, and that 43% of Americans believe that immigrants improve the overall US economy.

“From an economic perspective,” says Wharton assistant professor Exquiel Hernandez, “the research shows pretty clearly that the best thing for the U.S. economy would be to increase the flow of immigrants.”

Holzer wrote that as the indigenous population and labor force grow older, this will open up new opportunities for racial and ethnic minorities. And with the development of technology, he predicts an increase in the number of displaced workers. He suggests that firms rely "more on independent contractors and other forms of outsourcing human resources functions."

Immigration due to these changes will result in lower costs.

“This is probably the main reason why immigration in general is good for the U.S. economy,” Holzer said. “This increases the number of workers in various areas and often reduces labor costs in those areas.”

However, according to Holzer, reduced costs can lead to lower wages.

“If there were no immigrants, wages would likely go up,” Holzer said. “And it may be better for some people in the United States.” On the other hand, it places a heavy burden on the people who have to pay for it. Consumers tend to feel better when immigrants come and lower these costs because lower costs significantly lower prices. An increase in the influx of immigrants means an expansion of the consumer market.”

US census data confirm that more innovation comes with immigration. Immigrant-owned tech firms in the US are more innovative than American business firms. Examples of this are Google (GOOGL), co-founded by former Soviet Union resident Sergei Brin, and Tesla (TSLA), founded and managed by CEO Ilon Musk, a native of South Africa.

Read also on ForumDaily:

How the 11-year-old son of Russian immigrants became the world champion and the USA in ballroom dancing

11 million illegal immigrants in the USA: where they came from, how much they earn and what language they speak

How a verse on the Statue of Liberty became a stumbling block in US immigration debate

10 steps to naturalization: the process of obtaining US citizenship

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