Earlier this month I met Pedro Chan at his small apartment above an evangelical
ID: 1174206 • Letter: E
Question
Earlier this month I met Pedro Chan at his small apartment above an evangelical church in Brooklyn’s Sunset Park neighborhood. Chan, who shares the place with three others, is short and muscular. He has a quiet voice and a patient demeanor that seems to have served him well on his journey to New York. In 2002, he left his Guatemalan village for a long trip through Mexico and, with the help of a smuggler, across the Texas border. In 2004, he made it to Brooklyn, where his uncle helped him find work on small construction crews. These days, Chan helps skilled (and fully documented) carpenters, electricians and stucco installers do their jobs by carrying heavy things and cleaning the work site. For this, he earns up to $25,000 a year, which is considerably less than the average entry wage for New York City’s 100,000 or so documented construction workers. Chan’s boss, who spoke on the condition of anonymity, said that unless he learned a specialized skill, Chan would never be able to move up the income ladder. As long as there are thousands of undocumented workers competing for low-end jobs, salaries are more likely to fall than to rise. As Congress debates the contours of immigration reform, many arguments have been made on economic grounds. Undocumented workers, some suggest, undercut wages and take jobs that would otherwise go to Americans. Worse, the argument goes, many use social programs, like hospitals and schools, that cost taxpayers and add to our $16 trillion national debt.
Given the above scenario, would deporting Pedro Chan and the such other 11 million or so undocumented workers mean more jobs, lower taxes and a stronger economy? What will be the impact of such a decision on supply of labor force? And finally, on the production of many hundreds of products where such workers are employed.?
Important:
Please make sure that you answer all questions given above. Read and do research on undocumented workers. Use actual data to support your answers.
Please Answer 300 words.
Explanation / Answer
In the US the population of unauthorized immigrants peaked in 2007 when it was at 12.2 million and 4% of the total U.S. population. But, the most recent estimates put the number of unauthorized immigrants at 11.4 million in 2015, representing 3.4% of the total U.S. population.
Research shows that illegal immigrants increase the size of the U.S. economy, contribute to economic growth, enhance the welfare of natives, contribute more in tax revenue than they collect, reduce American firms' incentives to offshore jobs and import foreign-produced goods, and benefit consumers by reducing the prices of goods and services. Economists estimate that legalization of the illegal immigrant population would increase the immigrants' earnings and consumption considerably, and increase U.S. gross domestic product.
Most undocumented immigrants come to the United States because of work opportunities. Studies also indicate that undocumented immigrants are not displacing U.S.-born workers. Rather, they are filling jobs that few Americans are interested in pursuing. One sector, in particular, offers a striking illustration: Undocumented immigrants account for 50 percent of all hired field and crop workers, making them essential to the success and continued viability of American farms. Contrary to popular rhetoric, undocumented immigration is not linked to a spike in U.S. crime rates. Between 1990 and 2013, a period when the number of undocumented immigrants more than tripled, the rate of violent crime in the U.S. fell by 48 percent. Instead of committing crimes, the vast majority of undocumented immigrants in the country are working and paying into our tax system. And because they are ineligible for most federal benefits, experts have long argued they are net contributors to the Medicare and Social Security programs.
Impact of deporting undocumented labor from America
6.4 percent: Amount the labor force would shrink due to mass deportation.
$1.6 trillion: Estimated reduction of U.S. GDP as a result.
5.7 percent: Amount the U.S. economy would shrink due to mass deportation.
$400 billion: Direct cost to the federal government.
In 2014, almost 10 percent of the working-age undocumented population were entrepreneurs. In more than 20 states, they boast higher rates of entrepreneurship than either legal permanent residents or citizens of the same age group. These self-employed workers frequently create American jobs. Their companies also generated $17.2 billion in business income in 2014.
Estimated Earnings and Tax Contributions of Undocumented Immigrants, 2014
Total Income
$178.3B
— Federal Tax Contribution
$13.2B
— State & Local Tax Contribution
$7.8B
Spending Power
$157.3B
Total Medicare Contribution
$3.4B
Total Social Security Contribution
$13.5B
By even the most conservative estimates, finding, apprehending, detaining, processing, and transporting the undocumented population would deal a Great Recession-like blow to the U.S. economy.
Deporting the estimated 8.1 million undocumented immigrants in the workforce would not automatically create 8.1 million jobs for unemployed Americans. The reasons are twofold: By shrinking the number of consumers, entrepreneurs, and taxpayers, mass deportation would shrink our economy and the number of jobs available. Secondly, natives and immigrants often possess different skills and education levels, meaning they are imperfect substitutes.
If Congress provided a path to legalization for the millions of undocumented immigrants already here, the economic benefits would be sizable. While legal status would increase access to a variety of public benefits programs, it would also allow newly legalized immigrants to pursue new job opportunities, boosting productivity and earnings. The accompanying increase in consumer spending and tax revenue would help federal, state, and local governments offset associated costs. If undocumented immigrants were required to pay back taxes, U.S. tax revenues would see a further boost.
Briefly, we can conclude, there are many compelling reasons why having a large undocumented population is a problem for society. It undermines law and order, permits a shadow economy that is harder to regulate, and is simply unfair to the millions of immigrants who have come here legally. Yet, while the undocumented population frequently comes under fierce criticism, the data shows that a large number of the 11.4 million undocumented immigrants here are working, paying taxes, and even starting their own businesses. They also play an integral role in our economy, often filling jobs in agriculture, construction, and hospitality that would otherwise remain vacant.
Sources: (All available online)
6.4 percent: Amount the labor force would shrink due to mass deportation.
$1.6 trillion: Estimated reduction of U.S. GDP as a result.
5.7 percent: Amount the U.S. economy would shrink due to mass deportation.
$400 billion: Direct cost to the federal government.
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