Immigrants positively affect the economy
The continual influx of immigrants positively affects three crucial elements of the economy: the labor market, economic growth, and public finance.
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Immigrants come to the US because they want more freedom and opportunities; so they can work hard and make a good life for themselves and their families. Immigrants usually bring special skills and invaluable talents to their country of destination. They boost the economy by increasing the overall efficiency and production. They often spark the expansion of critical sectors of the economy, which draws investment and opens up new job opportunities for everyone. In a recent study, the International Monetary Fund states, “Immigration significantly increases GDP per capita in advanced economies.” The White House Council of Economic Advisors conducted a study in 2007 which found that immigrants increased American GDP by $37 billion a year. Immigrants tend to be highly innovative. Their entrepreneurial mindsets push them to take risks and start new businesses from high-tech startups or corner shops. In 2016, half of the startups that reached over $1 billion in value were established by immigrants. Immigrants have contributed greatly to the high-tech and biotech industries. Among the technology and engineering companies established in the period between 1995 to 2005, 25.3 percent had a foreign founder. This percentage was 38.8 in California and 52.4 in Silicon Valley, which is the heart of the high-tech industry.
Immigration may benefit the economy in different ways, but it comes with costs as well. Younger immigrants with children that need education and older immigrants need more health care and pensions, both of which are costly. However, it is the latter group that end up needing the most help. Older immigrants who are past their prime working-age need health and pension benefits from the government at a higher rate. There is some evidence which shows that immigrants negatively impact the wages of native-born Americans who do not have a high school diploma. For these people, immigration resulted in a 1.1 percent decrease in annual wages.