How Does Immigration Affect The Economy

The issue of immigration has become especially prominent in today’s society because of the corrupt system currently in place, and endless misconceptions about the role of immigrants in America. Some critics argue that immigration is a problem because of drug trafficking, overcrowding, or the threat on the job market. Although there is room for improvement in the social aspects of immigration, evidence proves that immigrants are important and beneficial to the American economy. Many studies indicate that immigration brings long-term benefits to the job market and wages, while others suggest that these benefits come with short-term disadvantages. According to a Penn Wharton study at the University of Pennsylvania titled “The Effects Of Immigration On The United States’ Economy”, “Standard economic theory implies that while higher labor supply from immigration may initially depress wages, over times firms increase investment to restore the amount of capital per worker, which then restores wages.” The study provides a graph showing that the steady growth in capital-labor ratio, in fact, has “not significantly or permanently” deviated since 1980, a time of significant rise in immigration. An increase in capital per worker has prevented average wages from declining long-term.
Mohammed Naseehu Ali, an immigrant from Ghana who graduated from Bennington College, showed his incredible talents in the American workplace, and was even later approved for an EB-1 visa, also known as the “Immigrant with Extraordinary Ability” program. Again, in the Penn Wharton study “The Effects Of Immigration On The United States’ Economy”, it is stated that “in many cases immigrants appear to complement American-born workers rather than replacing