Economics
Wide Cast of Characters Discuss the Benefits of Legalization
While comprehensive immigration reform (CIR) remains stalled somewhere between the House, Senate, and the Administration, four noted experts were interviewed by the Council on Foreign Relations (CFR) about how immigration reform would affect the U.S. economy. These interviews were posted on CFR’s website yesterday. David Scott Fitzgerald, Associate Director for the Center for Comparative Immigration Studies at the University of California, San Diego; Heidi Shierholz, an economist for the Economic Policy Institute; Mark Krikorian, Executive Director for the Center for Immigration Studies; and James Carafano, Director for Foreign Policy Studies at the Heritage Foundation offered opinions on immigration and the economy. While their opinions varied widely, there were notable areas of agreement: our system is in need of repair, and legalization would not be the great harm to our economy that restrictionists tout. Read More
The Economic and Political Stakes of an Accurate Census Count
This week, the U.S. Census Bureau began distribution of the questionnaires for the 2010 Census. The results of the Census will form the basis for the apportionment of congressional districts and the distribution of hundreds of billions of dollars in federal funds, as well as serving to guide community-planning decisions across the country. However, Census 2010 has not been without its share of controversy. In October of last year, for instance, Senator David Vitter (R-LA) proposed an amendment to the Commerce, Justice and State appropriations legislation which would cut off financing for the 2010 Census unless the survey includes questions about immigration status. Additionally, some pro-immigrant activists have suggested that immigrants sit out the Census this year to protest the federal government’s failure to enact comprehensive immigration reform. Yet this would be self-defeating given the high economic and political stakes of an accurate count, and that fact that immigrants are already among those demographic groups who are typically under-counted in the Census. Read More
Proposed “Start-Up Visa Act” Would Help Create American Jobs
With the passage of the $15 billion jobs bill in the Senate last week, job creation is certainly at the top of the Congressional priority list. As a way to further stimulate the economy, Chairman and Ranking Member of the Senate Foreign Relations Committee, Senators John Kerry (D-MA) and Richard Lugar (R-IN), introduced the Start-Up Visa Act of 2010 last week which incentivizes job creation through the promise of legal residence status—that is, “drives job creation and increases America’s global competiveness by helping immigrant entrepreneurs secure visas to the United States.” Read More
Can Immigrants Give America’s Rust Belt a Tune-Up?
Immigrants have long been a driving economic force in America’s large thriving metropolitan areas—New York, Los Angeles, Chicago, Miami, Dallas—where immigrants’ economic output produces a large and growing share of the U.S. gross domestic product. But what about the once thriving industrial heartland of the United States known as the Rust Belt? In a roundtable discussion yesterday in Akron, Ohio, authors Richard Herman and Robert Smith discussed their new book which points out how “immigrants and the businesses they create” can “provide rundown neighborhoods with a powerful jolt of new investment and spinoff job opportunities” and how our broken immigration system is taking away at least one tool for economic recovery in the cities that need the most help. Read More
How Immigrants Can Help America Rise Again
With the U.S. unemployment rate still hovering around 10 percent, it’s only natural for people to worry whether America’s recent economic decline is reversible. In this month’s issue of Atlantic Monthly, correspondent James Fallow takes a step back to address just that—what he calls "the fear of American declinism." In his historical and economic analysis of America’s overall well-being, Fallow finds that while America’s governing system is old, broken and in desperate need of reform, Americans should find comfort in “America’s cycle of crisis and renewal.” We’ve been here before, Fallow says, and if we want to move forward, we need to maintain and nurture the driving economic forces that have lined the road to renewal in the past—a thriving university system, a culture of innovation and a receptiveness to immigrants. Read More
How Remittances Can Help Haiti Recover and Strengthen the U.S. Economy
Each year, millions of immigrants in the U.S. send billions of dollars in remittances to friends and family members in their home countries. It is easy to mistakenly assume that this represents a huge loss for the U.S. and in this economy, why are we allowing billions of dollars to be sent abroad? Like all things immigration-related, however, the relationship between remittances and the U.S. economy is much more complex than meets the eye. While it’s true that remittances are an important source of income for immigrant-sending countries, remittances are also a huge boost to U.S. exports and the U.S. economy. Read More
New Study Confirms Positive Impact of Immigration on Wages of Native-Born Workers
The Economic Policy Institute (EPI) yesterday released a new study, Immigration and Wages, which confirms what many other economists have found: “that immigration has a small but positive impact on the wages of native-born workers overall.” The report, by economist Heidi Shierholz, finds that the “effect of immigration from 1994 to 2007 was to raise the wages of U.S.-born workers, relative to foreign-born workers, by 0.4% (or $3.68 per week).” Even the small (and shrinking) number of “U.S.-born workers with less than a high school education saw a relative 0.3% increase in wages (or $1.58 per week)” as a result of immigration during this period. Read More
Napolitano Unveils Enforcement-Heavy Immigration Budget for DHS
The Fiscal Year (FY) 2011 budget request for the Department of Homeland Security (DHS), which Homeland Security Secretary Janet Napolitano unveiled yesterday, exemplifies the enforcement mentality which pervades the federal government’s approach to immigration. The two immigration-enforcement components of DHS—Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE)—consume 30% of the department’s total budget, while the immigration-services component, U.S. Citizenship and Immigration Services, is allotted a mere 5%. However, the budget request does throw a few much-needed crumbs to programs such as Asylum and Refugee Services and Immigrant Integration and Citizenship. Read More
To Mention Immigration or Not To Mention Immigration? That is the Question
In last night’s State of the Union Address, President Obama’s comments on immigration were simple, ‘we should continue the work of fixing our broken immigration system—to secure our borders, enforce our laws, and ensure that everyone who plays by the rules can contribute to our economy and enrich our nation.’ It was neither detailed nor overly passionate, but signaled that immigration reform was still a priority for his administration under a broader push for greater civil rights. Read More
Dear Reps. Smith and Miller, Don’t Confuse Your Talking Points with Facts
Representatives Lamar Smith (R-TX) and Gary Miller (R-CA) would like the public to think that they have the same concerns as most Americans today, releasing a joint statement expressing anxiety over the 15 million Americans currently without work. On its face, their statement—“we must enforce our current immigration laws to ensure illegals do not take away jobs that rightfully belong to American and legal workers”— makes sense. In a vacuum, if our economy provided only a set number of jobs available for American workers, Messrs. Smith and Miller would be correct. However, this is just not the case. Read More
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