With all of the negative media surrounding immigration over the past few years, particularly within the US, it’s typically viewed as a major problem in today’s economy and society. However, the truth is, not all immigration is negative.
In fact, immigration can play a key role in economic growth. It is even credited to helping the American society to flourish in the 1920s; building it up into the most powerful economic state that it is today. So, to highlight the positive effects immigration can have, below we’ll look at how it can help to boost economic growth.
Delivering the right skill-sets to boost growth
A common myth surrounding immigration, is that workers from abroad are coming in and stealing jobs from American nationals. However, the reality is that the majority of immigrants actually help to bridge the skills gap. Approximately 43% of immigrants have a college degree, compared to just 29% of Americans with a college degree. Immigrants are also credited to making up 40% of Fortune 500 companies, which employ over 10 million people worldwide.
So, the majority of immigrants actually help to bridge skills gaps within the country, significantly boosting its economy. Businesses which are wary of hiring immigrants can seek the advice and services of specialist immigration lawyers.
Helping to combat the challenges of an aging population
It’s no secret America is facing an aging population crisis. Baby boomers are causing pressing issues in terms of healthcare and employment. With fewer adults of working age in the country, immigrants become essential at maintaining and growing the labour workforce.
America isn’t the only country experiencing this issue. Japan’s economy has also started to decline and it is being blamed both on an aging population, and its tough no immigration policies. America could look at the issues currently being experienced by Japan and similar countries, in order to prevent the same happening to them.
Adding trillions of dollars to GDP and taxes
Immigrants are also unfairly accused of costing America in taxes. However, statistics show that they actually bring in trillions of dollars into the GDP (Gross Domestic Product) and in taxes. A report in 2017, showed that second-generation immigrants pay an average of around $1700 per year, whereas American-born nationals pay an average of $1300. So, they actually pay in more than American nationals do.
Similarly, immigrants don’t often rely upon benefits. In America, immigrants have to have been in the country for five years before they can claim benefits. Of those that have been a citizen for more than 5 years, the majority earn too much income to receive benefits.
Boosting local businesses
Another way immigrants are helping economic growth; is the benefits they have on local businesses. As many do start up their own companies, they employ native-born employees; creating great job opportunities. They also use the services of local businesses too, further boosting the economy.
So, when you really look into the statistics and facts surrounding immigration in the US, you quickly see it largely has a positive effect on economic growth. Legal immigrants are essential to the economy and they likely always will be.
Comments
Log in or sign up to join the conversation.