Positive Impact of Immigrants on our Economy 

Positive Impact of Immigrants on our Economy

Immigration involves people’s movement from their maternal homeland to host countries searching for a better life for themselves and their families in respective countries. According to (Friedberg, Rachel, and Jennifer 35), the most vividly debated effects of immigration involve the United States economy and mostly the labor force, which stands at an estimated 12 million undocumented immigrants in the country with varying impacts on the country’s economy ranging from positive and negative impacts. Immigration bears positive impacts on the economy, such as the expansion of the labor market, immigrants have helped in rebalancing demographics, and had a cultural impact on the economy through cultural exchange. Still, immigrants have contributed more in taxes and social contributions than what they receive in individual benefits from various organizations and host nations. Therefore, this paper seeks to highlight the positive impact generated by immigrants on our economy.

Immigrants move to host countries searching for better living and working conditions for themselves and their families as earlier retaliated. As a result of immigration, which further creates an immigration surplus, which boosts the host country’s economy at the same time. Integrating immigrants in a nation’s workforce increases the nation’s labor workforce, which in turn increases the economic contribution generated from economic activities resulting in economic growth (Sherman 22). According to research conducted by Friedberg et al., expand the workforce, which increases the overall output level, which is a key driver of economic growth (Friedberg, Rachel and Jennifer 34). Host countries can reap benefits steered by immigrants’ economic growth, which would go a long way in accelerating and realizing the country’s economic goals and fulfillment of economic milestones.

Immigrants also play a critical role by rebalancing demographics in the host country, especially western and European nations, constituting a large proportion of the aging population. According to Lutz’s research in the Journal of Andrology, the average birth rate has continuously declined over the past few decades. It continues to flatter in the country’s age (Lutz 27). As a result, a low birth rate directly constitutes the decline of the labor force, leading to declined demand for goods and services in various industries such as housing (Dumont, Jean-Christophe, and Thomas). Results in catastrophic outcomes as such develops still economies with gradual slowing and a further less dynamic economy. On the other hand, immigrants’ labor force helps sustain the economy, pay taxes, and mitigate the problem brought about by the imbalance in the demographic graph.

Besides, immigrants are fundamental in the economy’s growth as it is estimated that an average of 11.64% billion is collected from undocumented immigrants (Friedberg, Rachel, and Jennifer 39). It constitutes state and local taxes, which are critical in the economic development of a nation. It is estimated that undocumented immigrants have about 8% of their income going into taxes, a notable figure under unexpected circumstances (Model, Penn Wharton Budget, n.p). Also, immigrants are vital in maintaining the social security trust fund by regularly paying for retirement accounts, which according to research, stood at 13 billion while at the same time receiving 1 billion in return (Anderson 19). Therefore, without the contribution of immigrant’s realization of the full benefits would not be possible beyond the 2037 marker.

Immigrants move into the host country’s bringing along their cultural and religious influences and festivals, impacting the economy. Cultural influence includes native foods and recipes, manufacturing, and clothing, which can lead to long term economic benefits that accrue on behalf of the host country when integrated into the host country. Ingredients and recipes such as the Spanish and Mexican pasta have become household names in the United States, which have immensely impact the economic landscape. Cultural importation has also resulted in the economic upturn resulting from trade, which has resulted in the blossoming of business and small-scale traders that offer traditional meals. The food industry has benefited further by immigrants’ presence through the availability of skilled and unskilled labor that directly increases competition and expansion of the economy.

Migration, on the other hand, contributes to spur innovation and economic growth of the host nation. As a result of the workforce expansion, this massively impacts the Gross Domestic Product (GDP). Whether registered or unregistered, immigrants comprise the younger and economically active individuals compared to the natives and immensely reduce the dependency ratio. Skilled immigrants supplement the stock of human capital of the host country. Which ultimately, skilled immigrants contribute to boosting research and innovation. Conclusively, due to the economic impact generated by immigrant families in host countries through their skilled and unskilled labor has enabled them to send finances back to their maternal countries, which directly impacts the countries’ economic growth and improves the living standards of its citizens.

In conclusion, it is widely agreed upon by many economists that the effects of immigration on the United States economy have broadly resulted in a positive impact. Immigrants are vital to host countries as they expand the labor force of a nation, which only benefits the growing demand for skilled and unskilled labor, contrary to the commonly held assumption that immigrants replace native workers and reduce the average wage over the long term. Immigrants are also important as they help rebalance the host nation’s demographics from the aging population with the more active generation, which is energetic and full of creativity and innovation. Finally, immigrants contribute a considerable share to the social security fund, which has further accelerated the realization of key economic milestones under such a short period. Conclusively, the positive impact brought about by immigration on a host nation’s economy is profound and should therefore be taken into account when gauging the impact of immigration on a nation’s economy.