Comprehensive immigration reform would add an estimated 1.5 trillion U.S. dollars to the U.S. gross domestic product (GDP) over 10 years, according to a new study released recently.
The study, entitled The Economic Benefits of Comprehensive Immigration Reform conducted by University of California, Los Angeles (UCLA) economist Raul Hinojosa-Ojeda, was published on the website of the Immigration Policy Center.
The study came shortly after a renewed commitment by the Barack Obama administration to back legislation this year that would provide a path to citizenship for an estimated 12 million illegal immigrants living in the United States.
Comprehensive immigration reform that legalizes currently unauthorized immigrants and creates flexible legal limits on future immigration in the context of full labor rights would help American workers and the U.S. economy, says the study.
Unlike the current enforcement-only strategy, comprehensive reform would raise the “wage floor” for the entire U.S. economy –to the benefit of both immigrant and native-born workers, the study says.
According to the study, the historical experience of legalization under the 1986 Immigration Reform and Control Act, or IRCA, indicates that the comprehensive immigration reform would raise wages, increase consumption, create jobs, and generate additional tax revenue.
Even though IRCA was implemented during an economic recession characterized by high unemployment, it still helped raise wages and spurred increases in educational, home and small-business investments by newly legalized immigrants, the study says.
The study estimates that the comprehensive immigration reform would yield at least 1.5 trillion dollars in the U.S. GDP over 10 years.
This study uses a computable general equilibrium model to estimate the economic ramifications of three different scenarios: the comprehensive immigration reform that creates a pathway to legal status for unauthorized immigrants in the United States, a program for temporary workers only that does not include a pathway to permanent status, and mass deportation to expel all unauthorized immigrants and effectively seal the U.S.-Mexico border.
The model shows that the comprehensive immigration reform produces the greatest economic benefits.
According to the study, the comprehensive immigration reform generates an annual increase in the U.S. GDP of at least 0.84 percent. This amounts to 1.5 trillion dollars in additional GDP over 10 years. It also boosts wages for both native-born and newly legalized immigrant workers.
The temporary worker program generates an annual increase in the U.S. GDP of 0.44 percent. This amounts to 792 billion dollars of additional GDP over 10 years. Moreover, wages decline for both native-born and newly legalized immigrant workers.
Mass deportation reduces the U.S. GDP by 1.46 percent annually. This amounts to 2.6 trillion dollars in lost GDP over 10 years, not including the actual cost of deportation. Wages would rise for less-skilled native-born workers, but would reduce wages for higher-skilled natives, and would lead to widespread job loss, according to the study.
Legalizing the nation’s unauthorized workers and putting new legal limits on immigration that rise and fall with U.S. labor demand would help lay the foundation for robust, just and widespread economic growth, the study says.
According to the study, the current enforcement-only approach to unauthorized immigration is not cost effective and has not deterred unauthorized immigrants from coming to the United States when jobs are available.
Rather, enforcement-only policies have wasted billions of taxpayer dollars while pushing unauthorized migration further underground. And these policies have produced a host of unintended consequences: more deaths among border crossers, greater demand for people smugglers, less “circular migration” in favor of more “permanent settlement” among unauthorized immigrants, and further depressed wages in low-wage labor markets.
“If we are going to create a solid recovery with good wages, we have to fix this hole that we have at the bottom of the labor market,” said the author, Raul Hinojosa-Ojeda.
“This is not about bringing in a lot of workers. This is about your neighbors and if we are better off where everybody in the economy has the ability to fight for their families and to contribute more to the economy rather than staying in the shadows,” said Hinojosa-Ojeda.
Hinojosa-Ojeda based the study in part on surveys done after the 1986 legislation that resulted in the legalization of nearly 3million undocumented immigrants.
Those surveys showed that immigrants who became legal moved on to better-paying jobs and became more educated, resulting in more spending and more tax revenue. That legislation was passed during a similar economic downturn, he said.
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Would someone please fix the broken system!
This post comes from Carl McGinnis, a citizen of the United States, who has seen the horrors of immigrant detention after ICE detained his legal immigrant friend. He tells us that it is not just about undocumented immigrants but even people who follow the rules get burned in our archaic and inhumane immigration system].
I am a citizen of the United States and I have a friend that is from Paris, France here on a student visa with a double Masters Degree and working on his PhD in International Finance. He has been here since 2005. His visa is valid until March of 2010, his passport is valid until 2014, and his I-20 is current. He is not what people call an ‘illegal immigrant.’ In 2007, he fell in love and in Dec. 2008 married a U.S. citizen that just happens to be addicted to prescription medications. He knew nothing about this. But he was arrested due to her mistakes. The reality is that his American wife was taking advantage of him and when his money was gone so was she. Janet Napolitano just wants to deport him rather than correct the problem, and make the American accountable. This is wrong. We should have some sort of protection built into the system. Judge Rex Ford would not listen to reason without the wife in court and all witnesses were not given time to testify. This is not what I thought American Justice was all about. I was wrong. It is all a game our Government plays with our lives.
He was placed in detention and scheduled for deportation. He has been in the detention center in Pompano Beach Florida for 5 months now. This couple has lost all there savings on lawyers, she lost her job, and they are in the process of losing their home. All this was caused because ICE has the wrong person in jail.
I have written many letters to Janet Napolitano, Senator Bill Nelson, Representative Ginny Brown-Waite and even President Obama. But no one will listen. What is illegal in this case is the way DHS is treating this guy, who is 51 and has never had a traffic violation. While in the detention center, He has been beaten by another inmate and suffered cracked ribs and bruised body, denied him food and proper medical treatment. He is diabetic and they will not give him the proper food or medical attention. The phone system is very poor and hardly works. I suspect that they plan it that way so the detainees cannot contact their lawyers and family. I fear he will be next on the long list of persons that have died while in detention. I beg for someone to go and listen to his story. They do not allow any form of media in because they don’t want anyone to know what they are doing.
Until you go to one of these detention centers and see with your own eyes, you will not believe what America is doing. I was shocked, on my first visit and after almost 6 months of seeing what happens and how they have to live, I am still in shock. It is all about the money. My friend has never cost America anything until they locked him up. He is in a private prison owned by a company called GEO based near Miami, Florida. They are paid very well by our tax dollars, but the treatment is unbelievable. I wonder how many politicians have stock in this company. They are doing quite well even in a bad economy.
Six months ago I had no idea that we treated immigrants in this way, especially when they are here legally and have done nothing wrong. I knew nothing about ICE and how they operate illegally. I was under the impression that DHS was here only to protect us from terrorists. And I had no idea of the millions of our tax dollars were being wasted to imprison people that could be out of detention and have their family support them until a decision is made in immigration court. I do not understand why we have to pay our hard earned tax dollars to house and feed persons that are not dangerous.
When they have to lock up a man who has done nothing wrong, make him spend thousands in fees, ICE is giving way too much importance to them selves. How can we turn such educated people away simply to boost the ego of ICE officers and add another number to the Janet Napolitano deportation list, so that the Obama Administration can look like it is doing its job of ‘cracking down on criminals?’
Something has to change soon. I feel it is my duty as an American to let as many people as possible know the truth. I visit the detention center every Saturday and spend the rest of the week writing letters. This New Year, lets do something worthwhile. Let’s go back to protecting the country rather than making up stories to justify the expansion of a national security complex. Let’s end businesses profiting from immigrant detention and restore our image as a nation of immigrants.
California will never rise from the ashes, without removing honed Liberal oriented politicians from any public office. California is strangled with its worst economy since the Great Depression, illegal immigrants are becoming part of the discussion on every Americans lips. California lawmakers in July 2009 struggled with a budget gap that has now grown to $26.3 billion, one of the hottest topics for many taxpayers is the cost to the state of illegal immigrants and the ever increasing costs. ARIZONA FINALLY HAS HAD ENOUGH, AND RESERVED THE RIGHT TO IMPLEMENT THEIR OWN LAWS AS THE FEDS HAVE IN MOST CASES HAVE UNDERMINED ENFORCEMENT. Not speculating that either Democrats, Republicans or Independents are without blame in what they address as their issues, but Liberals have brought most border states to paupers situation, by allowing the easy flow of illegal immigrants into California, Arizona, Texas, Texas, New Mexico. Governor Richardson, unlike most states issued drivers licenses to illegal immigrants.
Only hard core, Liberal extremists have resented any kind of restrictions on illegal alien benefits, starting with Proposition 187 passed by true California residents and blocked from reaching the Supreme court. The once Golden State is saturated with millions of illegal families, that have worn away public services. Schools are inundated with illegal children in the millions, with English as a second language. Schools are especially hit hard, because their has been a definite reduction in academic performance owing to overcrowded classrooms. A very depressive situation has evolved, as many hospitals and clinics as the schools have been unable to handle the influx of Anchor babies and desperate illegal settlers from South of international Southern fence. I saw this first hand before I departed California, as my sons school was all but English as a second language.
Very few Angelo’s are aware of Title 1 schools that offer free breakfast and free lunch programs. Saying free breakfast, Its not talking a glass of milk and roll — but a full breakfast and cereal bar with fruits and juices of which the dumpster becomes full. Free medical, free education, free food, day care and host of programs that most American taxpayers remain ignorant about? Huge outlays of funds have been distributed to foreign national families, even through our own citizens and legal residents have been declined. Los Angeles County Supervisor Mike Antonovich said, “such situations are, unfortunately, all too typical. “It is catastrophic,” Antonovich says. “We cannot be the HMO to the world.” Another voice Legislative Analyst Dan Carson says California now spends about $4.6 billion yearly to provide services for — or to incarcerate — illegal immigrants.” This has been a never ending problem for taxpayers and now Sen. Harry Reid, Nancy Pelosi, Chuck Schumer, Sen Diane Feinstein and all those who pander to the illegal alien occupancy–MUST BE HELD ACCOUNTABLE IN FUTURE ELECTIONS
EVERY LAW TO DO WITH IMMIGRATION ENFORCEMENT INCLUDING THE 1986 SIMPSON-MAZZOLI BILL HAS BEEN UNDERMINED BY MANY POLITICIANS AND THEIR OPEN BORDER LOBBYISTS. The time has come for all American taxpayers to demand from your reluctant legislators to make Permanent E-Verify, with no exceptions to every business, to remove illegal workers from American jobs. To fund federally train every law officer across the country–as with SANCTUARY CITIES AND STATES–to be empowered to–without prejudice to question any person at their discretion, under the blanket of 287 (g) immigration enforcement law as with the right of Federal agents to audit any business using illegal foreign workers. The-NO MATCH-LAW, should never have been rescinded, when Social Security numbers have irregularities.
And all ITIN (alternative to a Social Security number) issued by the IRS, should also be scrutinized as this is way illegal aliens have found an unlawful pathway into seemingly being a legal resident. Not even the original border fence as designed as two layer barrier. Even the decennial US Census is to be compromised by counting illegal aliens. MOST BORDER STATES HAVE COMPARABLE FINANCIAL CRISIS AND TODAYS PAYOUTS FOR ILLEGAL ALIEN FAMILIES, HAS ACCELERATED OUT-OF-CONTROL.
The tax and spend mentality has specifically caused a terrible crisis in California by Sacramento Liberal apologists in the assembly. In Los Angeles city the indifferent indifferent elected officials have a nerve to try and pass a $100 dollar tax on Angeleno property owners to bolster the wilting school funds. In my way of thinking, Angeleno’s should place the whole city officials in contempt and propose a class action lawsuit in front of the courts. California’s nearly 3 million illegal immigrants cost taxpayers in 2004 nearly $9 billion each year, according to a report released by the Federation for American Immigration Reform, a Washington, D.C.-based group that promotes stricter immigration policies.The study looks specifically at the costs of educating illegal immigrants’ children, providing medical treatment to illegal immigrants and jailing those convicted of committing crimes.
The report estimates the total cost at $10.5 billion each year, but that is offset by about $1.7 billion in taxes that illegal immigrants pay. also added an estimate of 597,000 U.S.-born children whose parents are illegal immigrants arriving at a total of 1,022,000 children. Multiplying the number of children by the estimated $7,577 the state spends on average per pupil, the study arrived at the $7.7 billion figure. FAIR defended the report, saying that the children (Anchor Babies) were born in the United States as a result of their parents’ illegal entry into the country. A similar study conducted by the Center for Immigration Studies in Washington, D.C., and released in August 2004, said that illegal immigrants cost the federal government $10 billion more than they pay in taxes. “State costs are much higher on a per capita basis because of the fact that the largest expenses are medical care and education and those are borne at the local level, not the federal,”
THE FEDERAL GOVERNMENT DO NOT PAY THEIR FAIR SHARE, WHICH THEREFORE IS BORNE BY STATE TAXPAYERS. In conclusion we cannot afford another AMNESTY, because the millions of illegal immigrant families will have access to Senior Citizens pensions, SSI, and many other entitlements for US born and legal residents. Learn what you can do at NUMBERSUSA & JUDICIALWATCH or call your federal representative at 202-224-3121. A good example of state politicians ignoring their commitment to their legal residents, is the near bankrupt state of the–SANCTUARY STATE of California.
I firmly believe that we will have the votes to pass comprehensive immigration reform
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