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The $7 trillion boost to the US economy from immigration has downsides too


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The surge in immigration to the United States has been hailed as a significant driver of economic growth, but it also comes with its share of challenges and complexities. While Federal Reserve Chair Jerome Powell credited a boom in immigration as a contributing factor to the country's remarkable economic expansion, recent developments suggest a potential shift towards stricter measures to curb immigration.

 

Amidst debates over immigration policy, including a controversial law in Texas allowing state officials to detain suspected undocumented immigrants, Congress is grappling with the issue against the backdrop of a looming partial government shutdown. However, amidst the political bickering, the economic implications of immigration often take a back seat, despite their significant impact on the nation's economy.

 

On the surface, the economic benefits of immigration seem apparent. More workers translate to increased output and additional tax revenue, as highlighted by Phillip Swagel, director of the Congressional Budget Office (CBO). The surge in immigration, particularly among prime-age working individuals, has contributed to substantial growth in the nation's workforce, with projections indicating a $7 trillion boost to the economy over the next decade.

 

However, the economic impact of immigration extends beyond mere growth figures. While immigrants contribute to federal tax revenue, they also place strains on state and local governments' resources, particularly in areas such as public education and social welfare programs. While immigrants may not qualify for certain social welfare benefits, they still impose costs on state and local governments, leading to a net negative impact on their budgets.

 

Furthermore, immigrants have played a crucial role in addressing labor shortages in the country, particularly as job openings outnumber unemployed individuals. Tara Watson, director of the Center for Economic Security and Opportunity at the Brookings Institution, emphasized the vital role immigrants play in easing labor shortages, especially as the population ages and fertility rates decline.

 

However, despite these benefits, immigration also poses challenges, particularly in terms of wage growth. The CBO predicts downward pressure on average real wages in the near term, as immigrants tend to work in sectors with lower wages. While there may be a reversal of this trend as migrant workers acquire more advanced skills, the overall impact on real wages is expected to be lower than it would have been without current immigration trends.

 

In essence, while immigration provides a significant economic boost, it also presents policymakers with a complex set of challenges to navigate. Balancing the economic benefits with the strain on resources and potential impacts on wage growth requires careful consideration and policy adjustments to ensure a sustainable and equitable outcome for all stakeholders involved.

 

21.03.24

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  • Confused 1
Posted
1 minute ago, sirineou said:

The GOP is right, After the anglos came here, the country reached perfection. any other ethnicities coming here can only detract.

Behold !!:tongue:

image.png.6ad0091ae2f8494ccdba882893deb78d.png

If you look closer at the impressive ,military grade back and front packs you will notice that they are empty. I wonder where the fat boy keeps his beer? I mean other than in his far bearbelly. :laugh:

  • Sad 1
  • Haha 1
Posted
6 minutes ago, sirineou said:

The GOP is right, After the anglos came here, the country reached perfection. any other ethnicities coming here can only detract.

Behold !!:tongue:

image.png.6ad0091ae2f8494ccdba882893deb78d.png

 

I see you agree with racial profiling then.

  • Confused 1
  • Agree 1
Posted
1 minute ago, G_Money said:


https://www.foxnews.com/video/6349317886112

 

Another reminder to listen to the people that actually live along the border.

 

Instead of liberals posting from the safety of their basement.

or conservatives from pattaya, 

Ohh, a little more to the right please, Yea yea , that's the spot. 

  • Like 2
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Posted
1 minute ago, blazes said:

 

I see you agree with racial profiling then.

Not at all

 

Posted (edited)

"a large portion of recent and future expected migrants are believed to be between 25 and 54 years old"

Decreased birthrate, Midicare and social security funding solved.

Edited by Srikcir
msp
Posted
1 hour ago, Srikcir said:

"a large portion of recent and future expected migrants are believed to be between 25 and 54 years old"

Decreased birthrate, Midicare and social security funding solved.

Certainly, immigration policy is a bit more complicated when looking at things broadly rather than as a yes/no, right/wrong issue.

  • Thumbs Up 1
Posted
2 hours ago, Wrwest said:

Yah, right. I have studied some history. In so doing compare the population now and then. Take a look at earlier mass immigration ... result of 1848 Revolutions in Europe, the mass immigration from SE Mediterranean resulting in anti-immigration action (they were Catholic after all). Certainly we have seen the largest membership in the KKK in the 1920s in response to new post WW I immigration, Catholic immigration and returning Black Soldiers having fought and coming home "upity" as they had experienced better treatment in Europe. It was a different time with different immigration pressures. Right now those coming are not just from Latin America. They are part of a global refugee movement (ask Europeans). Middle East, China, Russia, Senegal ... fleeing war, poverty, domestic political repression and seeking a better secure economic life. Too bad the Republican Party Congressional representatives chose to ignore the Senate Bipartisan Bill. That all said, I figure we both recognize there is, in fact, an immigration system issue as a result of both parties having "kicked the can down the road" for decades. What is now taking place is a result of the failure of Congress to pass needed legislation.


Do gooder of the year award acceptance speech.

  • Like 1
Posted
13 hours ago, alex8912 said:

Yah right. Tell that to those who came through Ellis Island vs illegally now.  No comparison. No handouts. 

My parents did with 4 kids

  • Like 1
Posted
16 hours ago, sirineou said:

The GOP is right, After the anglos came here, the country reached perfection. any other ethnicities coming here can only detract.

Behold !!:tongue:

image.png.6ad0091ae2f8494ccdba882893deb78d.png

 

 

Might be the Gravy Seals, or even Meal Team Six, or YA'AL-Qaida

 

 

  • Haha 1

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