Immigration Reform and Economics
Posted on Mar 14, 2013 11:37am PDT
According to the White House blog, Gene Sperling discusses the ever present issue of immigration reform and its effects on the economy; essentially addressing the idea that there needs to be a commonsense reform in our country. Sperling claims that as there are an estimated 11 million undocumented people living in America, employers are negatively affecting the economy because everyone is playing by different rules in job market. Immigration reform must be a plan that unifies the economy and the people within the country in regards to their responsibilities, both the workers and the employers.
President Obama is currently striving for this reform, hoping to address immigration topics like stronger boarder security, holding employers accountable for their actions, making an easier path for people to earn their citizenship, as well as restructuring legal immigration. Sperling brings up the fact that both parties on the topic of immigration agree that either way, these 11 million undocumented people in the country need to be brought to light and out from the shadows. By doing so, this will give businesses the better opportunity to evolve in the economy as they grow stronger and can play a better role in their market. As Sperling calls it, "commonsense immigration reform" is going to change the future of America, help not only the economy but also positively affect the advancement of the country as well as imports and exports. According to the Congressional Budget Office, by going through with immigration reform over the next four years our countries GDP will increase .5%.
By reform immigration, more and more immigrants will be able to open their small businesses, and therefore provide more jobs for the people in their community. According to studies an immigrant is actually two times more likely to found their own business as opposed to someone who was born here. The Partnership for a New American Economy conducted a study in 2011 and found that 13% of new businesses were by those from the U.S. where 28% are was by immigrants. By having these new businesses, many Americans will find employment through these companies; essentially helping the unemployment rates in the U.S.
The Partnership for a New American Economy shares that nearly 40% of all Fortune 5500 companies were founded by immigrants around the world. When looking at the numbers more closely, this means that there are over 10 million people who are employed over the world because of these jobs, and they bring in annual revenue around $4.2 trillion dollars on behalf of our economy. Encouraging immigration helps our economy for multiple reasons, and education and innovation being one of the bigger factors. By having students coming to our country for schooling and work, they are going to be the next investors, scientists and engineers that can change the way our country operates. Believe it or not, immigrants in America actually represent half of the population in the country that holds a PhD in the field of math and sciences, and then 57% of those in the engineering occupation.
When adding scientists and engineers into the workforce here in America, it actually increases the wages of the native people in the workforce. According to studies from the University of California, Davis; educated college workers who were born in America will likely have a higher wage of 4-6%. Areas that immigration reform will affect our country are in the areas of the U.S. trade, as well as encouraging international trade more frequently as well. Having a stronger immigration system will make foreigners more likely to visit America with the potential of staying here to invest in the economy eventually.