The topic of illegal immigration in the United States has been extensively debated for many years. The effects of this issue will continue to be felt amid the current recession and widespread economic hardships. On December 1, 2008, the National Bureau of Economic Research officially declared that the U.S. was in a recession. Prior to 2007, the U.S. economy experienced growth in 23 out of the last 25 years, attracting a significant influx of new immigrants during this time frame. From 1970 to 2007, the foreign-born population in the U.S. increased from 9.6 million to 38.1 million individuals, representing a fourfold increase. In just the past decade alone, over one million legal immigrants entered the country annually while an additional half a million entered illegally.
Latin American immigrants (including Mexicans) currently make up 54% of the total immigrant population compared to only18% back in1970.Asians now comprise27%, up from just9%in1970, while European and Canadian immigrants have decreased from comprising about two-thirds (68%)of all immigrants in1970 down to only15% today(Terrazas,2009). According to a Gallup poll conducted in2007 ,46 %of Americans believe that immigrants are having negative effects onthe economic situation.
Immigration plays a crucial role in the growth of the U.S. economy, contributing $1-10 billion annually to the gross domestic product. The Federal Reserve Bank of Dallas (2003) explains that immigrants contribute to job growth in three ways: filling more jobs, taking jobs in regions with labor shortages, and filling positions that native workers avoid. Without immigrants, production levels would decrease, leading to increased demand and prices for goods. According to the Bureau of Labor Statistics, nearly 30% of the workforce in residential construction consists of 2.4 million immigrants (Isadore 2006). These immigrants not only contribute through their work in building houses but also play a vital role through their purchases, making them essential for both production and the housing market.
According to Simmons (2006), the economic challenges caused by immigrants, specifically those who are undocumented, were emphasized. In California, households are mandated to pay approximately $1,000.00 in order to address the issue of illegal immigration. The impact of this phenomenon on the economy is a blend of favorable and unfavorable outcomes. On one hand, wages for individuals with low skills decrease, leading to lower costs for products like restaurant meals, produce, and construction.
Illegal immigration can have a detrimental impact on government spending because illegal immigrants do not contribute taxes. Nevertheless, their children still benefit from public education and utilize other government services, creating a perception of increased strain on government resources. Harvard professor George Borjas suggests that when considering both positive and negative effects on the economy as a whole, illegal immigration has a slightly advantageous overall influence. Specifically, the average American’s wealth would only experience a less than 1% increase due to illegal immigration.
In February 2011, an article from the “Federation for American Immigration Reform” stated that illegal immigration puts a financial burden of $113 billion per year on U.S. taxpayers at federal, state, and local levels. This means that each household led by a native citizen pays an average cost of $117.00. The main expense for taxpayers is providing education for children of undocumented immigrants, which amounts to approximately $52 billion annually (Simmons 2006). Additionally, taxes collected from illegal immigrants at state and local levels only cover less than 5% of the total public costs associated with them.
California had a deficit of $14.4 billion in 2010-2011 and additional expenses of $21.8 billion for illegal immigrants. Similarly, New York’s deficit of $6.8 billion seems insignificant compared to the yearly costs of $9.5 billion for illegal immigrants. It is important to acknowledge that some illegal immigrants have children who are born in the United States and therefore obtain U.S. citizenship. As a result, these children are not included in the overall number of undocumented children in the country, even if their household is led by an illegal immigrant.
Immigration has led to an increase in enrollment in public schools, with 7% of school-age children being from illegal immigrant families. These students often need extra support, resulting in additional expenses for the school system. A report by Standard and Poor’s in April 2006 states that local school districts educate about 1.8 million undocumented children, costing approximately $11.2 billion annually at a rate of $7500 per student.
In 2009, the estimated education cost for children of undocumented immigrants and U.S. citizens was $30 billion. The expenses related to illegal immigration also include significant expenditure by the United States for border enforcement. According to the Center of Immigration Studies, in 2007-2008, the cost of enforcing borders surpassed potential tax savings resulting from a decrease in illegal presence. Moreover, The U.S. Today highlighted that Medicaid, the federal-state program for low-income individuals and those with disabilities, might provide emergency care to illegal immigrants.
Non-emergency care without payment is not available to illegal immigrants and legal immigrants residing in the country for less than 5 years. However, they can access most public health benefits. Medicaid coverage is also unavailable for these individuals unless they fall into specific categories such as children, the elderly, or disabled individuals.
A study conducted by the Pew Hispanic Center in 2005 found that approximately 59% of illegal immigrants lack health insurance. In comparison, around 25% of legal immigrants and only 14% of U.S. citizens are uninsured. These uninsured individuals account for approximately 15% of the total uninsured population in the United States, which consists of about 47 million people.
According to the Center for Immigration Studies, a pro-restriction organization, in 2004 undocumented migrant-led households caused federal government expenses of over $26.3 billion in 2002. They paid only $16 billion in taxes, resulting in a net fiscal deficit of nearly $10.4 billion or roughly $2700 per illegal household (source: www.cis.org). If amnesty were granted to illegal immigrants and they started paying taxes and using services similar to legal immigrant-led households with comparable educational backgrounds, the projected annual net fiscal deficit would increase from $2700 per household to approximately $7700, totaling $29 billion. While legalization would raise average tax payments by 77%, average costs would also rise by 118%.
Undocumented immigrants who are employed often do not contribute to the government’s fiscal deficit because they are unwilling to work. However, it is important to assess the overall situation and weigh the benefits provided by illegal immigrants against the associated expenses. This topic will remain a subject of ongoing discussion.
References
- Terrazas, Arron. (January 2009). Illegals and Current Economic Crisis. www. migrationpolicy. org/pubs/lmi_recessionJan09. www. lsu. edu/faculty/jwither/Essays/Immigration_trade/Sisk_essay.
- Isadore, C. (2006, May1). Illegal Workers: good for the U. S. economy. (www. money. cnn. com/2006/05/01/news/economy/immigration_economy(index).
- Simmons, G. (2006, March 30). Immigration’s Effect on Economy is Murky. (www. foxnews. com/story/0,2933,18972,00. ) Survey by Gallup; June4-June24, 2007. www. ropercenter. uconn. edu/ipoll. )
- U. S. Immigration and Economic Growth: Putting Policy on Hold (2003, December). (www. Dallasfed. org/research/Swe/2003/Swc0306a. ) www. immigration. procon. org/view. answers. php? question ID=00788. www. fairus. org/Feb/2011.
- “Backgrounder: Immigrants in the United States, 2007”, Center for Immigrant Studies, November 2007. Wolf, Richard (2008, January 22).
- “Rising health care costs put focus on illegal immigrants”. USA Today. www. cis. org/illegal. www. pewhispanic. org/files/Reports/126/94.
