The Effects Of Immigration On The Economy

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The highly debated topic of whether immigration is good or bad for the economy continues today. While one main argument claims that illegal workers are stealing jobs from native born, the caveat to this would be that immigrant workers occupy the jobs americans don’t want to fill. In the end however, it would be naive to claim that immigrants have no negative effects on the economy. When it comes down to it, immigration leads to a redistribution of wealth from the employee to the employer. As the supply of workers increases, the remuneration firms pay to hire said workers decreases ultimately returning the money to the employer. Even after the economy adjusts to these new wages, businesses who hired more immigrants will continue to have lower…show more content…
To scale this number, the wage earned by dropouts is $10386 less than the ordinary high school graduate and $36,424 less than an individual holding a bachelor’s degree. Data from the bureau in 2016 shows that immigrants lacking a high school diploma have lead to a sizable increase in the low skilled workforce by approximately 25 percent. Consistent with the relationship between workers and wages, earnings of this group have decreased by $800 to $1,500 every year. Regardless of the industry or degree, the redistribution of wealth occurs between native born workers competing with immigrants to those using immigrants in their business for low wages. On a year to year basis, the effect of immigration on the economy is negative. With a simple formula it is easy to see: higher government assistance (low earnings) + lower tax contribution (low earnings)= fiscal deficit. While immigration is not that simple, looking at it Smith…show more content…
MAKE AMERICA GREAT AGAIN!” But the question remains, how will changes be made and what impact might this have? On March 5th Trump tweeted “We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed.” However, while NAFTA may bring some significant disadvantages in terms of growing trade between the allied countries it isn’t all bad. Since the agreement was made in 1993 at $290 billion, the total trade amount has grown exponentially reaching a total of $1.1 trillion in the year of 2016. In fact, even in the year of 2014 the Peterson Institute for International Economics (PIIE), stated that the United States has gained a total of $127 billion each year thanks to trade growth facilitated through NAFTA. Unfortunately however, for the United States, the NAFTA agreement has come with many disadvantages, and ultimately outweighing its positive effects on
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