Does illegal immigration affect the economy more negatively or positively?

Question

Please cite credible sources.

FYI, I am not asking this for homework purposes. I am also not asking this question to promote a stance on the issue. I am simply looking for an economic breakdown. I know that illegal immigrants cost the American people in some ways, but they also help the economy by increasing production. Since tehre are both positives and negatives, I would like to see a measurement on which is greater.

Answer 1

It affects the states negatively, and the federal government positively.

In brief:

States fund Medicaid and the public school system, etc. Illegals tend to consume these services without paying taxes.

On the flip side, illegals are often working with a fake SS#. In that scenario, millions are paying into Social Security without any chance of recouping it, so the Federal government will make a profit.

Here's an academic paper looking at it empirically:
http://aysps.gsu.edu/frc/files/report122.pdf

Answer 2

It's hard to say.

Some of the positives are cheap and readily available labor, which helps keep the costs of goods and services down, as well as an increase in consumers. Increased consumption hasn't been as robust in the past with illegal Latino workers because they send large sums 'home' to family.

The biggest drag on the economy is not as much near term as it is longer term, with the biggest issue that most of the wages paid are not taxed. An illegal worker is usually not a tax payer, but will have many of the privileges available that taxes pay for. Local services can become strained, such as public schools, police, fire and medical services.

Tough to say with any certainty, in my view, if it is more good or bad. There needs to be an intelligent approach to fixing the current immigration problems, with the current road creating tension where it really need not be.

Answer 3

Just imagine if all illegal workers in the US get deportated. What would that country turn to be? Based on the national census in 2000, the US Census Bureau puts the estimate of illegal immigrants at 8.7 million. As of 2003, the US Citizenship and Immigration Services put the number at 7 million. Since then, United States immigration officials have said the number has grown by as much as 500,000 a year. There may be as many as 20 million illegal immigrants in the US today - more than twice the official Census Bureau estimate. This maybe a crime, but when they are all gone, there would be no more cheap labor and prices would be rocketed.

Answer 4

Credible sources? Social Security Dept.; T. McKown, Internal Revenue Service (auditor)

Illegal immigration affects not only the economy but every one of the LEGAL United States Citizens. Whose social security numbers do you think those illegal workers are using? Yours and mine. Your grandmothers; your children's; your neighbor's.

When someone else uses your car, do you get upset? When someone else's dog poops on your lawn, do you get upset? When an illegal immigrant uses someone else's social security number to secure a job, should they be allowed to continue? The companies are required, by law, to deduct FICA taxes from their paycheck and federal taxes. Don't you think the IRS is going to get wind of this and scream AUDIT!

My sister is an IRS agent who has audited several people for UNDER REPORTING INCOME. What do you think the most common cause of under reporting is???? Illegal immigrants using a 'purchased' social security number.

Your tax dollar pays for my sister to audit these people whose lives are in turmoil because of illegal use of their SS number. Those people lose time from work to meet with her. They MUST PROVE their innocense.

I could explain futher the affect this has on the economy; lost wages, lost productivity, wasted tax dollars, etc, but I think you get the picture.

This issue is not about not wanting Latinos or immigrants to live in the US, it's about what illegal immigrants do to legal citizens, unintentionally or not. It's about following the law. Why should they be forgiven when they break the law? I can't break the law without some recourse. You can't break the law and expect amnesty, can you.

I'm assuming you are writing a paper and need to cite some sources. Can you use an annonomous source? The government doesn't like to admit to anything, but you can try the SS and IRS websites. I know there will be some auditors willing to talk 'off the record' about earnings on the same SS# but different names in different parts of the country, at the same time.

I wish I could be more helpful, this is a heated debate and everyone has an opinion.

Answer 5

Back in mid-1990s, Julian Simon did a comprehensive study on the subject:

http://www.cato.org/pubs/policy_report/pr-immig.html

His conclusions were:

* The rate of U. S. immigration in the 1990s is about one-third the rate of immigration at the beginning of this century. The total number of immigrants--including illegals--is about the same as or less than the number then, though the country's population has more than doubled.

* The foreign-born population of the United States is 8.5 percent of the total population, which is significantly lower than the proportion--13 percent or higher--during the period from 1860 to 1930.

* Immigrants do not increase the rate of unemployment among native Americans, even among minority, female, and low-skill workers. The effect of immigration on wages is negative for some of these special groups and positive for others, but the overall effects are small.

* Total per capita government expenditures on immigrants are much lower than those for natives, no matter how immigrants are classified. Narrowly defined welfare expenditures for immigrants are slightly more than for natives, but this has been true in the past, too. These welfare expenditures are only small fractions of total government expenditures on immigrants and natives. Schooling costs and payments to the elderly are the bulk of government expenditures; natives use more of these programs, especially Social Security and Medicare.

* The educational levels of immigrants have been increasing from decade to decade. No major shifts in educational levels of immigrants relative to natives are apparent.

* Natural resources and the environment are not at risk from immigration. As population size and average income have increased in the United States, the supplies of natural resources and the cleanliness of the environment have improved rather than deteriorated. Immigration increases the base of technical knowledge. That speeds the current positive trends in both greater availability of natural resources and cleaner air and water.

Answer 6

In 2005, there were 3.8 million unemployed adult natives (18 to 64) with just a high school degree or less and another 19 million not in the labor force. Moreover, between 2000 and 2005 there was a significant deterioration in the labor market prospects of less-educated adult natives.

The labor force participation has fallen significantly for both natives without a high school degree and those with only a high school degree. Had it remained the same in 2005 as it had been in 2000, there would have been an additional 450,000 adults without a high school degree in the labor force and 1.4 million more adult natives with a only high school degree in the labor force.

This decline in particularly troubling because these workers already have lower labor force participation and higher unemployment than more educated workers. They also tend to be the poorest Americans. Among teenage natives (age 15 to 17), labor force participation has also declined.

At the same time that natives have been leaving the labor market, the number of immigrants with a high school degree or less in the labor force increased by 1.6 million. Wage growth among less-educated adult natives has also lagged well behind more-educated workers.

The argument that America needs illegal aliens and high levels of legal immigration only makes sense if one ignores the plight of less-educated native-born Americans. We find little evidence that immigrants only do jobs natives don’t want.

Detailed analysis of 473 separate occupations shows that there are virtually no jobs in which a majority of workers are immigrants, let alone illegal aliens. The overwhelming majority of workers in almost every single occupation, even the lowest-paid, are native-born.
http://www.numbersusa.com/interests/jobless.html

Tancredo, Ron Paul, and Hunter have the most conservative voting records on immigration.
http://www.betterimmigration.com/candidates/2006/prez08_gop2.html
http://www.betterimmigration.com/candidates/2006/prez08_gop3.html
http://www.betterimmigration.com/candidates/2006/prez08_gop1.html

Of these three, Ron Paul has the best chance of winning the Primary election.
Paul's campaign has almost 4 times as much money to spend as Tancredo.
http://projects.washingtonpost.com/2008-presidential-candidates/finance/candidates/ron-paul/
http://projects.washingtonpost.com/2008-presidential-candidates/finance/candidates/tom-tancredo/

This is his six point plan:
Physically secure our borders and coastlines. We must do whatever it takes to control entry into our country before we undertake complicated immigration reform proposals.
Enforce visa rules. Immigration officials must track visa holders and deport anyone who overstays their visa or otherwise violates U.S. law. This is especially important when we recall that a number of 9/11 terrorists had expired visas.
No amnesty. Estimates suggest that 10 to 20 million people are in our country illegally. That’s a lot of people to reward for breaking our laws.
No welfare for illegal aliens. Americans have welcomed immigrants who seek opportunity, work hard, and play by the rules. But taxpayers should not pay for illegal immigrants who use hospitals, clinics, schools, roads, and social services.
End birthright citizenship. As long as illegal immigrants know their children born here will be citizens, the incentive to enter the U.S. illegally will remain strong.
Pass true immigration reform. The current system is incoherent and unfair. But current reform proposals would allow up to 60 million more immigrants into our country, according to the Heritage Foundation. This is insanity. Legal immigrants from all countries should face the same rules and waiting periods.
http://ronpaul2008.com/issues/border-security-and-immigration-reform/

The NAFTA Superhighway might be another significant threat to American borders.
http://www.youtube.com/watch?v=MBmFrYWPoG8
http://www.lewrockwell.com/paul/paul349.html

Answer 7

Under the radar, most Americans don't realize half of illegal aliens work off the books and pay no taxes. The 2005 Bear Stearns Report showed a related loss of $301 billion in uncollected IRS income taxes annually, for the 2003 base year.

To make it worse, migrants yearly send more than $60 billion in cash remittances back to home countries— thus bleeding the U.S. treasury. These illegal aliens forget to report their job-wages when applying for "free" services.

BIG "business;" children and grand-children born here to illegal aliens.

"Instant citizens" create another drain on taxpayers' earnings. The average delivery costs $5,000 to $7,000 – depending on location. The pre-natal and postnatal care adds another $5,000. Is this 'birthing' a big item? Various experts tell us the number of such births in 2006 was somewhere between 400,000 and 1,200,000 babies.

The direct and indirect costs are thus somewhere between 4.4 BIL and 13.2 BIL U.S. dollars – per year – and that doesn't include the subsequent $3.5 BIL to $10.5 BIL – per year – for education. The real kicker occurs when each child gains free access to K-12 education and free breakfast and lunch program for 13 years of schooling. The cost of one year of school averages $7,000.00 – and the feeding programs, born by American taxpayers, soar into the billions of dollars.

How many children of illegal aliens attend U.S. schools?

The "official numbers" grossly understate the reality.

If we tabulate 20-28 million illegal aliens here now – plus their 4-9 million kids and grand-kids – and two-thirds of those kids attend schools – we pay to educate some 4-9 million kids. Factor-in birth costs, prenatal care, postnatal care, medical costs for children with birth-defects and other "complications," special needs kids, schooling and lunch programs – and we're talking big bucks. Do the math!

The U.S. continues as the only first-world nation to endorse the old-paradigm – granting full citizenship and benefits to each child "Born in the USA ." France and Britain and all of the other first-world nations nullified that benefit many years ago, as counterproductive.

Hidden Costs; not discussed in polite company

As the financial costs grow, few speak about job losses and wages depressed for America's working poor. "Unemployment" proves a touchy subject, so the official numbers continue being grossly understated. In truth, 14-18 million U.S. citizen-taxpayers endure unemployment. They head to the unemployment lines, soup kitchens, homelessness and food stamps. Their family members suffer endlessly, but the "progressive" media maintains "silent assertion."

Do not forget the middle class! They suffer job losses in roofing, dry-walling, construction, cab driving, landscaping, house painting, paving and restaurant work – just to name a few. We must also remember that each of these "breadwinners" usually features a spouse-partner, a few kids, and aging parents.

No one escapes the ravages of illegal migration.

Ask yourself this question. With more than 20 million "migrants" doing THIS MUCH DAMAGE, what happens to American workers and communities tomorrow, and the next day – when we add another 10 or 20 or 30 million more illegal aliens into our country?

http://www.americandaily.com/article/20280

Answer 8

Currently they are a greater drain on society.

We can fix that with the Fair Tax Act ww.fairtax.org

Under that plan, they will pay just as much taxes as everyone else.

Answer 9

Negatively because illigal immigrant dont pay taxes.

Answer 10

There is no such thing, everybody desire a change in this world!