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?

Note :- Please avoid Plagiarism

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Answer 1

The economic costs and benefits of immigration

Immigration fuels the economy. When immigrants enter the labor force, they increase the productive capacity of the economy and raise GDP. Their incomes rise, but so do those of natives.

Immigration changes factor prices — it lowers the wages of competing workers, while raising the return to capital and the wages of complementary workers. In other words, the immigration surplus does not accrue equally to everyone. It goes primarily to the owners of capital, which includes business and land-owners and investors.

Proponents of immigration respond to such arguments in several ways. For one thing, they argue that in evaluating the costs and benefits of immigration, it is important to recognize the ways that immigrants contribute to living standards, particularly for the middle class. Although low-wage immigrant workers are often blamed for unemployment and depressed wages, in fact they make it cheaper to buy many goods and services--everything from fresh fruit and vegetables to clothing, construction, and childcare. As birth rates fall, immigrants assume many necessary but less desirable jobs, picking crops, washing dishes in restaurants, laundering clothes, staffing hospitals, and running small shops.

The Effects of Immigration on the United States’ Economy:-

Today, the United States is home to the largest immigrant population in the world. Even though immigrants assimilate faster in the United States compared to developed European nations, immigration policy has become a highly contentious issue in America. While much of the debate centers on cultural issues, the economic effects of immigration are clear: Economic analysis finds little support for the view that inflows of foreign labor have reduced jobs or Americans’ wages. Economic theory predictions and the bulk of academic research confirms that wages are unaffected by immigration over the long-term and that the economic effects of immigration are mostly positive for natives and for the overall economy.

Immigration's Effects on Jobs and Wages

Economic theory points to possible effects on the employment and wages of domestic workers, U.S. trade with other countries, the size and growth rate of the economy, and the prices that Americans pay for goods and services

Labor Market Effects of Immigration

Whether native-born Americans gain or lose, immigration most directly affects the welfare of immigrants themselves. Immigrants come with the expectation that they will gain from immigration. If they had not felt that they would gain, they were free not to immigrate. Economic betterment is only one of many reasons why immigrants come here. Some may come expecting economic loss, but this must be offset by higher perceived gains in other things they value, like political freedom or reunion with their families. These gains are all before the fact. It may turn out that some immigrants are disappointed with life in their new country and some who fail to realize a gain return to their country of origin.