Economics
Here He Goes Again: Lamar Smith Rehashes Distorted Claims on Immigrants and Social Security
Representative Lamar Smith, the top ranking Republican on the House Judiciary Committee, has been making the rounds again with astounding claims regarding immigrants and Social Security. Based on what he has described as “hard data” released by the Social Security Administration (SSA), Rep. Smith’s analysis is inaccurate and his conclusion wrong. There is broad agreement that the presence of undocumented workers in the United States helps to keep the Social Security system solvent. In fact, SSA estimates that payroll contributions relating to work performed by undocumented immigrants improved Social Security’s cash flow by $12 billion in 2007 alone, benefiting us all. Rep. Smith recognizes that undocumented immigrants pay into Social Security, yet he doesn’t want them to become U.S. citizens and participate when they retire and can no longer work. But that’s not how America works. The bedrock principle of the Social Security system is that what you get is based on what you pay in. Read More
Blaming Immigrants for State Budget Deficits Doesn’t Make Sense
As state and local governments grapple with growing budget deficits brought on by the current economic recession, some pundits and policymakers are attempting to blame immigrants—particularly undocumented immigrants. According to this flawed line of reasoning, which was on display in a June 21st Sacramento Bee editorial by Daniel Weintraub entitled “The cost of illegal immigration,” if the tax contributions of immigrants in general, or undocumented immigrants in particular, don’t cover the costs of the public services they utilize in a single year, then immigrants must be a financial burden on the treasury and the majority of taxpayers. However, by this narrow and misleading measure, nearly all native-born children, retirees, and unemployed workers would also qualify as economic “burdens.” A realistic accounting of the economic “value” of any person must include the contributions they make over the course of a lifetime as workers, consumers, taxpayers, and entrepreneurs. Read More
Immigrant Homebuyers Play Crucial Role in Housing Market Revival
Earlier this week, the Joint Center for Housing Studies of Harvard University released a new housing report which provides a rather grim analysis of the current housing crisis. Real home prices continue to fall and foreclosures continue to mount despite recent federal interventions. Because of job losses, decreased home prices, and tougher credit eligibility requirements, homebuyers are finding it more and more difficult to purchase homes. But, as the report notes, immigrants could be a key element to recovery. Read More
Immigrants Could Soften Effects of Baby Boomer Retirement
On Tuesday, the Social Security and Medicare Boards of Trustees released their annual reports on the dire financial condition of the nation's two largest social safety-net programs. Not surprisingly, the reports highlight the devastating impact that the current recession is having on both Social Security and Medicare, which are now expected to run out of money years earlier that previously forecast. The reports should also serve as a reminder of the severe demographic crisis the United States is confronting as the native-born population grows older: as the 78-million Baby Boomers retire over the next two decades, immigrants will play increasingly important roles in the U.S. economy as taxpayers, workers, consumers, and homebuyers. Read More
Pew Report Reveals Continuing Importance of Immigrants to Housing Market
A recent report from the Pew Hispanic Center sheds new light on the value of immigration to the U.S. economy—even in the midst of a recession. The report, which examines the impact of the housing market's boom-and-bust cycle on minorities and immigrants in the United States, found that the latest housing "bust" which began to unfold in 2005 has had less of an impact on immigrant homeowners than on native-born homeowners. Although immigrants are still less likely to own homes than the native-born (just as native-born blacks and Latinos are less likely to own homes than native-born whites), rates of homeownership have declined faster for the native-born than for immigrants since the onset of the current housing crisis. The findings of the Pew report are a far cry from the shrill claims of anti-immigrant commentators such as Rush Limbaugh, who not long ago helped propagate the fabricated claim that the crumbling of the housing market was precipitated in no small part by millions of undocumented immigrants defaulting on subprime mortgages. Read More
Condoleezza Rice Wants Undocumented Immigrants Out of the Shadows
Like many in the Bush administration who recently recognized that comprehensive immigration reform is not a roadblock but a vehicle to America’s economic recovery, former Secretary of State Condoleezza Rice highlighted the need for comprehensive reform last week as an economic and social imperative at the Stanford Institute for Economic Policy Research summit. Now a political science professor at Stanford and senior fellow at the Hoover Institute, Rice put the Bush administration’s failure to achieve real reform of our immigration laws ahead of the Middle East conflict in terms of her “deepest regret” as secretary of state. Read More
“New American” Idols
Last fall, IPC produced a report about The New American Electorate: The Growing Political Power of Immigrants and Their Children discussing how immigrants and their native-born children, born after 1965, were closely connected to the issue of immigration and that it would prove to be an important factor in their voting decisions. Fast forward to now and it becomes clear that "New American" power extends beyond the voting booth and into the living rooms of more than 20 million viewers each week through the wildly popular reality television show, American Idol. The 8th season of America Idol is underway and two-finalists on the show are themselves New Americans: Read More
New Americans: A Springboard for California’s Economy
Earlier this year, the Washington Post reported that analysts across the country have been worried that the economic crisis has fueled an increase in hate groups and racist, anti-immigrant rhetoric. With its large immigrant population and current economic woes, California is in the belly of the beast. Yet, while many restrictionists and anti-immigrant groups are exploiting the recession and using immigrants as scapegoats, an undeniable truth lies beneath their feeble facts: California's immigrants and their children climb up the socioeconomic ladder over time and most Californians have economically benefited as a result. California exemplifies not only the enormous political and economic clout of immigrants, but also accounts for innumerable stories of immigrants who experience remarkable upward mobility over time, master English, and own their own homes, according to a new Immigration Policy Center report. Immigrant workers and entrepreneurs make up a large part of taxpayers and are vital when it comes to the success of California's new budget. Read More
FAIR Blames Florida’s Budget Woes on Immigrants and Children
On January 29, the Federation for American Immigration Reform (FAIR)—an anti-immigrant hate group headquartered in Washington, DC—issued a press release claiming that Florida's current budget crisis "would be lessened by ending illegal immigration costs." In support of this assertion, FAIR argues that "the current fiscal cost outlays for the illegal alien population in Florida now amount to more than $2.8 billion annually." However, FAIR's estimate is rendered meaningless by the statistical chicanery used to produce it. Read More
Scrounging for Facts in FAIR’s Reporting Yet Again
Video by America's Voice. The Federation for American Immigration Reform (FAIR) released another report claiming that undocumented immigrants cost states much more than they pay in taxes. This time the target was Colorado. As is the case for many restrictionist reports, FAIR's conclusions are based on dubious "evidence" and assumptions, and often relies upon national level data to estimate Colorado-specific numbers. FAIR claims to look at the costs of providing education, health care, and incarceration to undocumented immigrants. But are they really looking at the undocumented population? Read More
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