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Econ Research Paper

1071 words - 5 pages

In this paper I will be arguing that illegal immigration is beneficial to America’s economy. The pace of illegal immigration changes with the state of the United States economy. For example, during the housing bust, illegal immigration went down and continued to go down throughout the recession. Now it is once again ascending and we can view the positive effects that it is having on the United States economy and the country can examine the possibility of granting these illegal immigrants citizenship.
One reason that illegal immigration positively affects the economy is that the labor pool of unskilled laborers is scarce in the United States. Illegal immigrants are taking jobs that very ...view middle of the document...

This is exactly what happens when the influx of illegal immigrants increases to the United States. By decreasing manufacturing offshore, the American workers and the immigrant workers are benefiting as well as all business and employees that are connected to the manufacturing sector. While these workers may not technically be citizens of this country, they are spending the money they made in this country and contributing to the circular flow of the economy. Illegal immigrants also create jobs just by contributing to the economy and making purchases. They more people who are shopping and spending their income, the more people are needed to sell the items they are buying. They can create jobs through other pathways as well. Foreign-born immigrants don’t always come to America and work under employers; they sometimes become their own employers. While it is currently illegal for the immigrants I have been discussing to start their own business, there are certainly illegal immigrant owned business that operate through the “underground” economy by being paid and paying their employees under the table. These immigrant run businesses could create jobs for American workers if they were to become legal. These business owners could play a huge role in reducing unemployment in the United States, which would also play a role in the economy.
Critics of illegal immigration argue that an large inflow of illegal immigrants also bring high economic costs through the lowering of domestic wages and the raising of public spending on things like education and healthcare. As mentioned earlier, while illegal immigration lowers the wages of some unskilled native workers, it actually increases household incomes in the long run through the lower cost of services and goods made using illegal labor. Illegal immigrants are undocumented workers so they do not pay taxes yet they do have to use government services such as education for their children. The state governments tend to carry more of that financial burden than the federal government. These issues seem to cancel each other out and result in no positive gain or negative loss from either.
In conclusion, illegal immigration is advantageous to the economy as a whole and yields a net...

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