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Immigrants
and its effect on the economy were among one of the most controversial debate
issues that were discussed by economists and politicians for years. Regarding
on the world’s regions, Northern America was the region with the highest degree
of immigration (Kirk, 2016). In fact, California hosted the greatest number of
immigrants, accommodating over 10 million settlers, which were approximately
27.3 percent of the entire population (“Immigrants in California”,
2017). Immigration played a very significant role in benefiting the economy by
reducing labor shortage and generating new businesses, which could lead to
further innovations.

Firstly,
immigrants benefit the economy by reducing labor shortage since they fulfilled
the gap in labor which results in a notable increase in production and
America’s Growth Domestic Product, or GDP. Labor shortage was among every
countries’ greatest concerns for it could cause a huge impact on the economy
and the country’s income. Even though America was a country that held numerous
numbers of immigrants, but they still lacked workers in many fields like manufacturing,
mining, and construction. Due to this reason, labor was extremely needed in
order to meet the needs of employers. In fact, employers in different skills of
labor market searched for more labor supplies to fulfill the demands of their
customers because more labor could result in an increase in production, which
would bring massive profits to the company itself.

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Looking
from the perspective of native-born workers, some might disagree with the fact
that more immigrants were entering their country since they might think that
these peoples would compete with them when it comes to finding jobs, despite
the fact that native workers and immigrants did not have to compete for the
same jobs because “both possessed a different level of skills and qualities,
so they tend to seek for different types of jobs” (Kugler & Oakford,
2013). A study from the National Bureau of Economic Research, or the NBER added
immigrants and native workers approached different areas of jobs due to
different levels of language, education, and experience (Varas, 2017). In fact,
most immigrants appeared to have lower education than natives, who might have
received some high school education. Meanwhile, immigrants who were bilingual
might suits certain jobs than natives who could only speak English. Howard
Chang (2016), a law professor at the University of Pennsylvania also supported
that immigrants were imperfect substitutes for native workers. For instance,
most newcomer immigrants tend to have problems with English, which could
restrict them from having access to certain jobs in the states. However, these
immigrants have kept many industries alive since there were still multiple jobs
that did not require highly skilled workers. Specifically, the study proved a 1
percent increase in the employment of immigrants could lead to a 0.5 percent
increase in income per worker (as cited in Migrating to Opportunity,
2017).  As a matter of fact, the
immigrant’s main intention in coming to America was to find job opportunities,
so they tend to accept jobs that most native would refuse to consider (M.

Orozco, C. Orozco, & Hillard, 2001, p.72). Additionally, as immigrants
entered the labor market, they indirectly increased native worker’s income. A
research founded that as immigrants enter the labor industry, native-born
reacted to this shifts in the workforce by aiming for higher skilled jobs, and
higher skilled occupation certainly means an increased amount of their income
(Kugler & Oakford, 2013).

Immigration
promoted growth and employment opportunities by increasing the population
number in the states. An increase in population raised the consumption level,
as well as the expanding the production and demand, bringing more investment
(Varas, 2017). Besides, these essentials had helped boost the country’s GDP.

Immigrants had added $1.6 trillion to America’s GDP in 2013 (Estrada, 2016) and
were expected to reach $24.6 trillion within 2030 (Groeger, 2017). Immigration
reduced the need for labor along with creating new businesses. Immigration
reduced the need for labor along with forming new businesses.

Secondly,
immigrants promoted the economy by creating new businesses, promoting more
employment and further innovations. Most immigrants were more likely to start
their own business than native-born. There were 17% entrepreneurs in the United
States that were immigrants (Fairlie 2008). Latest data also confirmed that
business owned by immigrants had generated over $776 billion in incomes and
employed approximately 4.7 million employees in 2007.  Plus, immigrants did not only create new
business, but they provided tons of jobs for Americans as well. For instance,
Npubar Afeyan, an immigrant from Lebanon, was the CEO of Flagship Ventures, a
company which founded 38 companies and owned more than 100 franchise (Furman
& Gray, 2012). In fact, there were many successful founders who were
immigrants like Jyoti Bansal, the founder of AppDynamics, and Paul Orfalea, the
founder of Kinkos.

Immigrants
are innovators. They played an important role in several high skill professions.

For example, immigrants represented 61% of hardware engineers, 50% of physical
scientists, 43% of computer programmers, 39% of accountants and mechanical
engineers (Reese, 2017). These immigrant inventors should not be underestimated
since they were the main strength that led the country to a better innovation.

Lyndon B. Johnson (1965), the 36th President of the United States, quoted that,
“the land flourished because it was fed from so many sources- because it
was nourished by so many cultures and traditions and peoples.” Without these
immigrants, further innovations would be impossible. It was not only the
economy itself that received the benefits, but including the people living in
America. Gordon Hanson (2012), a professor of economics at the University of
California, mentioned about the recognizable progress American household that
the increased in production, that was due to increasing number of immigrants,
had boosted the population’s living standard (p. 26, para.1). Immigrants
lessened the need for labor and creating new businesses, bringing trillions of
profits to the country.

 

In
conclusion, immigration had elevated the country’s economy by providing labor
forces, increasing productivity and the country’s GDP. Variation in skills of
immigrants fulfilled shortage in many areas of work. It also generated more
businesses, boosting the employment rate in the country and bringing
high-skilled people which helped promote further innovations. These essentials
had strengthened the economy, leading America to prosperity.

 

 

 

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