What are the four major economic issues in U.S. immigration reform?

What are the four major economic issues in U.S. immigration reform? This week the focus in Washington has shifted to the immigration reform plan. Politicians who oppose the plan have so far focused on the idea that it will attract...

In fact, there are many disputes about immigration reform, but in the United States, where the economy is so fragile, more people want to know the impact of immigration reform on the U.S. economy.

The following are four major questions about the impact of immigration reform on the economy: (1) Will immigrants affect the wages of native-born Americans?

A 2010 Brookings Institution study concluded that, on average, new immigrants can improve the living standards of American workers across the board, mainly by raising wages and lowering prices. Why do more workers competing for the same position lead to higher wages? The reason is that instead of more people competing for the same position, immigrants actually change the number of jobs employers create. For example, an influx of cheap labor can make certain businesses, such as farming or restaurants, more stable. Without cheap labor, these companies simply cannot compete with foreign rivals. In addition, immigrants not only provide labor but also increase market demand. The large-scale immigrant population also creates more potential customers for enterprises. (2) Do immigrants continue to consume national welfare?

Another controversy over strict immigration restrictions is that many Americans believe that without strict legal restrictions on immigrants, unskilled workers will flood into the United States and exhaust the various benefits provided by the government. Controversy in this area varies, depending on the region. Some studies show that immigrants receive more benefits and pay less in taxes. However, there are other studies showing opposite results. Bryan Caplan, an economist at George Mason University, believes that this seems to be a common bias, and in fact, the welfare state focuses on the elderly, not the poor. Applications for social security benefits and medical insurance benefits are subject to means-tested procedures. However, newcomers tend to be young and most rely on themselves to care for the elderly rather than tapping the welfare system.

Furthermore, some illegal immigrants use forged Social Security card numbers to pay taxes, which is equivalent to pure profit from government tax revenue. In 2005, Social Security's chief actuary estimated that without illegal immigrants using fake Social Security cards to pay taxes, the system's long-term leakage of funds over more than 75 years would have increased by 10 percent. In addition, Kaplan pointed out that much of government spending is what economists call "non-competitive," meaning that the government can provide benefits to large numbers of people without much additional cost at all. (3) Does immigration help economic growth?

In fact, the most important factor driving economic growth is innovation. Simply put, if American workers and businesses could figure out how to work more efficiently, we would see economic growth. According to Gordon Hanson, an economist at the University of California, immigrants, especially highly skilled newcomers, have contributed a lot to the innovation of American companies. Immigrants are more likely to patent new inventions or processes than native-born Americans, and Hansen believes immigrants at least provide U.S. companies with unique knowledge and perspectives on foreign markets. But it's not just highly skilled immigrants who help drive U.S. economic growth. Hansen said low-skilled immigrant workers can also make the U.S. economy more efficient.

First, low-skilled immigrant workers are more willing to move to different locations in search of job opportunities. Hansen said: "U.S.-born low-skilled workers are often unwilling to move. For example, the demand for low-skilled labor in North Carolina has increased significantly, but native-born workers are unwilling to move there. The insufficient labor market will only bring the booming areas to a halt and further slow down the pace of economic recovery." In addition, adding low-skilled immigrant workers can also help the labor force to be more efficient. For example, increasing the number of low-skilled workers willing to do daily housework, laundry, cleaning, childcare, etc. can allow top managers to spend more time on work and be more productive. (4) Whose interests will immigrants harm?

The vast majority of economists believe that looser immigration policies are a good thing for the overall U.S. economy. Of course, not everyone agrees, and the most contentious issue is the impact of immigrants on low-income and native-born Americans. However, it is almost certain that American workers losing their jobs due to competition from immigrants are isolated cases and not universal. On the contrary, increasing the efficiency of the labor force driven by new immigrants, as well as innovative enterprises and employment opportunities, can help speed up the economic recovery. Of course, the stakes in opposing immigration reform are not simply economic. Some arguments against America's liberal immigration policies focus more on the concept of justice and fairness, sacred law, and the integrity of American culture.