Question

Discuss the economic costs and benefits of immigration? Is immigration bad for U.S. economy?

How does it help the sending (immigrants' original  country) country?

Answer 1

economic cost of immigration

It changes factor prices. It lowers the wages of competing workers. However effect of negative wage impact is more on less skilled workers

If immigration is of low skilled workers, it reduces real GDP

It may also lead to structural unemployment

Rise in pressure on social services like hospitals, schools etc

Rise in housing cost

Possibility of disharmony in societies

Benefits of immigration

It fuels economy with labour force

It increase productivity. of the economy

Rise in income of both immigrants and natives

It grease the wheels of labour market where their shortage might otherwise damp growth

Immigrants are more mobile than natives which result in better allocation of resources

No immigration is not bad for US economy

The available evidences suggest that immigration leads to more innovation, a better educated workforce, greater occupational specialization, better matching skills with jobs and higher over all economic productivity

It hasa net positive impact on combined federal ,state and local budgets.

Benefits to sending country

Improved quality of life

Rise in technical knowledge

Increase in remittances causing rise in foreign exchange reserves

Better employment opportunities, highly paid jobs

Better educational facilities

Modernisation of society