How Do Immigrants Affect The Economy

Research Paper
The topic of immigration, whether legal or illegal has been rife with discussion in the United States, since perhaps the first immigrants sailed from Europe in the fifteenth century. With decades of endless debate, the topic has remained in the forefront of the American voter’s mind for a very long time.Immigration has many talking points: arguments over the social, political, and future implications of immigration have plagued our society for decades. However numerous, among the most important are the economic effects that immigrants have on the United States of America. What positive effects do immigrants; both legal and illegal have on the economy of the United States of America?

Immigrants help the United States economy
in multiple ways. With the number of immigrants; both legal and illegal so high, there can be no doubt that they have a noticeable effect on the U.S economy. Most economists would agree that Illegal immigrants are not a hinderance to the U.S. economy, but rather a boost. Illegal immigrants no doubt have a social welfare strain on the United States; just like any other population. However, the Congressional Budget Office cited in a study conducted in 2007 that, ‘’ In the past two decades, most efforts to estimate the fiscal impact of immigration in the United States have concluded that, in aggregate, and in the long term, tax revenues of all types generated by immigrants-both legal and unauthorized-exceed the cost of the services they use.’’ This quotation from the Congressional Budget Office’s study show that the taxes that authorized and unauthorized immigrants must pay is more than all of the services that they use. Immigrants using our country’s services do not create a burden. By being here in the first place, they all pay at least some taxes; which according to the aforementioned Congressional Budget Office balances out any ‘’burden’’ that they may have on the United States’ services. Furthermore, the taxes that the immigrants pay; gets used to pay for the united states government and public service projects like roads, and schools. The tax money that immigrants put back into the United States’ economy helps just like everyone else's

Immigrants create and run small businesses that employ American citizens, and put money back into the U.S. economy. The Fiscal Policy Institute, a well respected education and research organization based out of New York, conducted a study with results that show immigrants make up eighteen percent of small business owners in the United States. The study acknowledged that small businesses employed 4.7 million people in 2007. That is the last year that data is available. With immigrants making up eighteen percent of small business owners in the United States, it is undeniable that immigrants create jobs for the U.S. economy, with respect to their small businesses. Furthermore, these small businesses produce 776 billion dollars in receipts for the U.S. economy. Immigrant’s small businesses create tremendous amounts of money, that gets put back into the United States economy; furthermore generating more economic growth. The businesses that immigrants run, are in every sector from medical, educational, retail construction and many more. With small businesses being such an integral part of the U.S. economy; immigrants do more than their fair share to create prosperity for the United States. Undocumented immigrants pay billions of dollars of taxes to the United States government annually. A study conducted by the Institute on Taxation and Economic Policy, which is a non-profit research organization that does work on the local, state, and national level states that immigrants contribute annually twelve billion dollars in taxes to the United States economy. The Institute on Taxation and Economic Policy also estimated that seventy-five percent of illegal immigrants pay into America’s social security system. The same system that they are not even eligible for unless they become authorized citizens. Furthermore, the Institute also estimates in the same study that fifty percent of illegal immigrants pay income tax to the federal government. Meg Wiehe,the director of the Institute on Taxation and Economic Policy, has gone on record stating, ‘’regardless of the politically contentious nature of immigration reform, the data show undocumented immigrants greatly contribute to our nation’s economy, not just in labor, but also with tax dollars.’’ There is absolutely no denial in any legitimate economist’s mind that undocumented, as well as documented immigrants pay a significantly positive role in the United States’ economy through their payment of federal state and local taxes. Their significance simply cannot be denied.

Immigrants also create cutting edge companies, and new groundbreaking technologies, that stimulate the United States economy, provide jobs for citizens, and create wealth for America. A study conducted by the National Venture Capital Association; a research organization and an association that advocates and promotes policies that foster innovation and reward long-term investment; shows that twenty-five percent of U.S. companies that are backed by venture capitalists are started by immigrants. Technology companies such as Comcast, Google, eBay, Yahoo, and many more were founded by immigrants. Google; the most valuable of those companies listed reported revenues of 29.3 Billion dollars in fiscal year 2010. Such staggering amounts of money, created by one of the world’s most valuable companies drastically helps the American economy. The money that American citizens spend to buy these companies products boosts the American economy much less the world’s. The American economy would be much less valuable if it were not for these companies, and the immigrants who founded them. Furthermore, a study conducted by the National Foundation for American Policy; which is a nonpartisan think tank, shows that over half of all American startup companies that have a value of one billion or more dollars, have been started by immigrants. The study analyzed forty-four American companies, and valued them at a total of 168 billion dollars. The same study found that the average company that was analyzed employed 760 people on average. These companies and their contributions to the American economy are unparalleled.

Many people see immigrants as being a burden on the American economy.
However, these people are obviously wrong. Many people would even assume that immigrants come from other countries with the sole purpose of using the united states only for welfare; while taking advantage from our government and giving nothing back. Frida Kahlo; a Mexican painter, who is known for her prominent and controversial self portraits; in 1932 painted a self portrait of herself on the border of the United States and Mexico. She paints the United States as a place of opportunity complete with skyscrapers and factories. However she portrays her own home country as a place that is less developed, and more natural. Immigrants like her see America as an opportunity; a place where they can take advantage of what we have to offer, in order to better their lives. The notion that they are a burden is simply wrong, and after reading the evidence presented is preposterous. Immigrants create billion dollar companies, they pay more dollars in taxes than what they use in services, and they start small businesses that employ millions of American citizens. Their contribution to the American economy cannot be denied. These immigrants want nothing more than to improve their live, and we need to do everything in our power to encourage their
journey.