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Economics of Immigration

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The Economic Standpoints of Immigrant Workers, Both Illegal and Legal
The topic of immigration from an economic standpoint, whether it be legal or illegal, is a tricky one. Some economists cannot agree on even just a simple question of whether or not this immigration has a positive or negative impact on American workers. Immigration does have some sort of impact on the economy of America, but whether it be positive or negative is based on the economist's standpoint. On one side of the argument, some economists are under the impression that immigrants, mainly illegal immigrants, take the jobs of Americans. On the other side of the coin, some economists believe that immigrants actually help America's workforce. The bottom line is, no matter what standpoint one chooses to view this topic, one is forced to conclude that the economics of immigrant workers is a vast one, and an easy decision can often not be made quickly.
Some economists believe that immigration, both legal and illegal, directly correlates to a weaker workforce and a negative impact on America's economy. This goes especially with the pay offered to less-skilled workers. As competition increases between less-skilled workers, Americans find more and more that immigrant workers work for much less than the average worker in America does. This is increasingly forcing some Americans to compete with workers willing to accept lower wages, so they must either accept lower wages as well, or be forced to go without. It is the basic economic theory: an increased supply of labor reduces earnings for natives in competition with immigrants. This can cause lower hourly rates for workers solely because of the idea that immigrants work for far less. This negative-impact is most especially prevalent in economic downturns, when employment competition is higher and the needs for basic resources has increased. Moreover, it has been noted that some business owners cannot compete for contracts in the bidding process because other business owners underbid by hiring illegal immigrants to do the work at much lower wages than standard wages. The main issues contributing to a negative impact on the economy are mainly the issue of lower wages and competition opportunities in the workforce, but the opposite side of the argument has quite some different opinions.
Most economists seem to agree that immigrant workers, both illegal and legal, have a positive affect on the economy, as well as the workforce. Just in 2007, economists found that the national income per worker was increasing by $5400 a year. Most economists hold the view that by employing immigrant workers, institutions and corporations are able to lower the cost of certain items because the amount of money spent on production by producers is directly correlated to the amount of money needed to be spent on the final product by consumers. Immigrant workers also typically take the low-education jobs. If the immigrants were not here, the natives would either remain with no job, or have to take these low-education jobs, something most Americans are not willing to do. Immigrant workers also contribute productivity growth by encouraging capital investment and specialization. Most low-educated immigrant workers work manual labor while many low-educated Americans prefer to work in communications professions, such as in restaurants. This allows workers to concentrate in certain sectors of the workforce and, therefore, does not displace jobs. On a slightly different note, immigrants do not have to be illegal, or even to live in the United States, to compete for US jobs at lower wages. An example of this is evident in China, where workers are used to make items for export to the United States because labor is much cheaper in China than it is in America.
The impact of immigration is indeed evident in the United States' economy. The question, though, of whether this impact be negative or positive, is a completely different argument that many economists can often not agree on. The lines separating the good and bad are frequently blurred as many different economists, from many different viewpoints, interpret situations in many different ways. While one says immigrants displace jobs, the other says they do not, thus demonstrating that the economics of immigrant workers consists of more than just a yes-or-no standpoint.

Works Cited
“Does Illegal Immigration Harm American Workers (for Example, through Job Displacement or Lower
Wages?” ProCon.org. Updated April 14, 2009. ProCon.org, 2015. Web. 13 September 2015.
Porter, Eduardo. “Immigration and American Jobs.” The New York Times: Economix. Updated October 19, 2012. The New York Times Company, 2015. Web. 13 September 2015.

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