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04/26/05

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Immigration and the Economic Effects

           There are two sides to the debate on  immigration and how it effects the economy. The side that says immigration is bad for the US economy and the other side says that says immigration helps and stabilizes the economy. Here's an overview of the the debate and the argument on each side.

 

Does immigration have a negative effect on the U.S. Economy?

NO

Immigrants that come to the U.S. Bring there talent energy and entrepreneurship. They are the risk takers they took the risk of leaving there country to come over to the U.S. in search for a better life. They create new jobs, new businesses, spend, invest, and raise productivity.

Immigrants help alleviate labor shortages in the U.S. These immigrants in some cases have skills that employers can not find among Americans workers. In other cases low-skilled immigrants are willing to work in occupations and for wages that Americans turn away from.

Even though immigration increases the supply of labor it also increase production. Therefore it increases the demand for labor. As you can see these two economic effects cancel each other out.

Immigrants create jobs in the U.S. They also spend and invest money into American business. When this happens growth in sales and production begin. The growth in sale and production leads to companies hiring more employees. In turn increases the employment rate in the Unites States.

YES

Not all immigrants who come to the United States are energetic and entrepreneurial. Some immigrants who come to the U.S. are refugees of there home country. These immigrants are fine people but are not necessarily better than Americans.

In the long run America is helped by a labor shortage. Employers who are faced with a shortage may try to economize by developing more efficient methods for production. They may also develop new technology and machinery.

 Immigration reduces American wages. Any one who know basic economics can easily point this out. That immigration increases the supply of labor and it allows the employers to play one group of workers (immigrants) verse the other (Americans) thereby lowering wages.

Immigration increases unemployment in the U.S. It is obvious that U.S. can’t provide enough jobs for it’s native how will it provide job for new comers without taking away from American workers

 

 

 

 

 

 

     

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This site was last updated 04/26/05