Immigrant Work Force Effects on Economy
A study published by Rasmussen Reports in August of 2015, an American polling company, showed that 51% of voters believe that illegal immigrants are taking jobs away from native workers. This is a valid fear to have as illegal immigrants cross the border of our country every day and make a living competing with our own workers, for our jobs, in our country. Research goes to show that immigrants compete with low skilled workers, teenagers, and black males, and not only do the immigrants take jobs away, but policy makers aren’t doing enough to curb the cost the immigrants are incurring on the county.
A simple economic model can tell you that when the supply of workers increases wages are going to drop. …show more content…
She says, “Justich 's report explained that the number of people counted in productivity calculations is artificially boosted when there are more people working than are reported to the government. U.S. productivity is based on the amount our economy produces divided by the number of people working. If there are a lot more people working than the government takes into account, this makes productivity look artificially high. It can also help to conceal underlying inflation.” This is after Justich found out that the figure of undocumented workers in the US provided by the government was terribly underestimated. Using this low figure for the number or people working can make it seem like productivity is great when it truly is not. This can lead to Recognition Lag- an increased amount of time to recognize a decline in the economy. To counteract this, Automatic stabilizers are used. This is when a policy goes into effect without any intervention by the government and most of the time it’s in the form of income tax adjustment or unemployment compensation. The idea in the latter of the two is that the Government spending (welfare in this case) will make its way back into the economy as the recipients will spend the money. In the case of immigrants, this belief does not hold true. “It is probable that immigrants will spend a lower proportion of their incomes than natives because of remittances…”(Nickell 2010). Many immigrants are here earning a living to send home, they are not here to sit on welfare, although if given welfare it will go to the same place as all the other income; back to the family. Thus Government spending may not offset the problem because the majority of the money will most likely not be spent on US soil. As for the income tax, the government cannot tax something that is not listed as income. Justich’s (2005) says, “We estimate that
A study published by Rasmussen Reports in August of 2015, an American polling company, showed that 51% of voters believe that illegal immigrants are taking jobs away from native workers. This is a valid fear to have as illegal immigrants cross the border of our country every day and make a living competing with our own workers, for our jobs, in our country. Research goes to show that immigrants compete with low skilled workers, teenagers, and black males, and not only do the immigrants take jobs away, but policy makers aren’t doing enough to curb the cost the immigrants are incurring on the county.
A simple economic model can tell you that when the supply of workers increases wages are going to drop. …show more content…
She says, “Justich 's report explained that the number of people counted in productivity calculations is artificially boosted when there are more people working than are reported to the government. U.S. productivity is based on the amount our economy produces divided by the number of people working. If there are a lot more people working than the government takes into account, this makes productivity look artificially high. It can also help to conceal underlying inflation.” This is after Justich found out that the figure of undocumented workers in the US provided by the government was terribly underestimated. Using this low figure for the number or people working can make it seem like productivity is great when it truly is not. This can lead to Recognition Lag- an increased amount of time to recognize a decline in the economy. To counteract this, Automatic stabilizers are used. This is when a policy goes into effect without any intervention by the government and most of the time it’s in the form of income tax adjustment or unemployment compensation. The idea in the latter of the two is that the Government spending (welfare in this case) will make its way back into the economy as the recipients will spend the money. In the case of immigrants, this belief does not hold true. “It is probable that immigrants will spend a lower proportion of their incomes than natives because of remittances…”(Nickell 2010). Many immigrants are here earning a living to send home, they are not here to sit on welfare, although if given welfare it will go to the same place as all the other income; back to the family. Thus Government spending may not offset the problem because the majority of the money will most likely not be spent on US soil. As for the income tax, the government cannot tax something that is not listed as income. Justich’s (2005) says, “We estimate that