I’m laughing as I write this because it reminds me of how the debate over global warming has raged for years with dueling scientists presenting their “facts” on both sides of the issue of whether we are warming or not, and whether man has caused the warming. It took a hacker or a leaker to help us sort out the facts. Now we see the dueling economists on the issue of immigrants and the economy.
The other day I posted this story about a new report from the Federation of American Immigration Reform that says immigrants (legal and illegal) cost Maryland a pile of money. In response I received (from a reader) this study posted at the Migration Policy Institute, with the press release title, “Report Finds Illegal Immigration Has Negligible Impact on U.S. Economy Despite Benefit to Employers, Unauthorized Workers.” Here is the summary from MPI:
Illegal immigration’s overall impact on the US economy is negligible, despite clear benefits for employers and unauthorized immigrants and slightly depressed wages for low-skilled native workers, according to this report by University of California, San Diego Professor of Economics Gordon Hanson for MPI’s Labor Markets Initiative. The largest economic gains from illegal immigration flow to unauthorized workers, who see very substantial income hikes after migrating, Hanson says, suggesting that policy changes could increase the positive contribution that low-skilled workers make to the US economy by converting illegal flows to legal ones.
Basically it says the illegal immigrants are faring well as are the employers, but government is not getting its cut, so let’s legalize the illegals. Of course the big question I have is would those immigrant salaries be so low that they wouldn’t be taxed anyway?
Then on MPI’s home page just below the above study announcement is this one: “Tied to the Business Cycle: How immigrants fare in good and bad economic times.” MPI’s summary:
Immigrants surpassed native-born workers in several key labor market outcomes from the mid-1990s through 2007, recording higher employment and lower jobless rates — but the trend was reversed with the onset of the current recession. The report, which analyzes employment and unemployment patterns over the past 15 years and two recessions, shows that immigrant economic outcomes began deteriorating before the current recession officially began in December 2007, tracing immigrants’ declining fortunes largely to the housing bust which began in spring 2006.
I am not an economist, so I’m not pouring over these studies and passing judgement, however if it interests you, be sure to read this post from last year in which I link economist Edwin Rubenstein’s large body of work on the subject.
Be sure also to revisit the work of Robert Rector of the Heritage Foundation where he reports on the cost to the US taxpayer of unskilled immigrant labor, here.
Bottomline, common sense tells us that a large pool of unskilled laborers will push wages down so the big businesses who are working hand in glove with the open borders groups (churches too!) are making out like bandits especially when we know that welfare/food stamps and things like emergency medical care (you, the taxpayer) picks up the tab for other areas of the unskilled workers’ lives. And, by the way, even legal low-wage employees don’t pay taxes (I’ve heard that only approximately 45% of US families pay taxes). I guess we need to keep our fingers crossed that some internal e-mails are leaked between economists so that we can better get a feel for who is telling the real story.
Readers, if you have more studies on either side of the issue, please send links and I’ll add to this post. Either put them in comments or mail to me at Ann@vigilantfreedom.com