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How immigeration affect economy Essay

Immigration in America is as old as history itself. Discoveries conducted by anthropologists in the last decades gave the concrete evidence to the fact that long before Ellis Island was opened for those seeking to get political, religious freedom and for adventurers, wanderers, persecutors, the fortune seekers, and others America was a land of various ethnic and cultural groups! The assortment of people and culture representing today’s America’s diverse economic culture presents the debate that has a short as well as long implication for which America stands for.

This immigration which is a boon for America’s socio and political culture now stands in a paradoxical situation and is started being considered as a problem for many. In a global scenario, naturally the immigration is considered as a boon for America. The direct effect of immigration has been the supply of unskilled workers, as their wages are considerably low, and as a result there has been a considerable growth of economy. For e. g. The high concentration of undocumented workers in the agricultural industry kept Food prices relatively low.

As reported in the NEWS, senior economist at RAND Corp. , Santa Monica, Calif. Said in 1998 that Immigrants are adding as much as

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$10 billion to the America’s economy each year,” and now Legal immigrants to the United States are over 35,000,000. But it is fact that some Americans have to pay more taxes due to Immigration. And the main culprit of the debate goes to the illegal population, who are creating a negative impact on the economy of America.

According to the Studies conducted by Census Bureau data in 2002, after paying the direct and indirect taxes, it was found that illegal households created a net fiscal deficit of more than $10 billion and if reprieve is given to them, then the net fiscal deficit would grow to nearly $29 billion. Net advance by illegal aliens have soared from 130,000 per year in the 1970’s, to over 700,000 per year in the 2000’s and in 2006, the total entrance could be as high as 1,500,000 per year with a net of at least 700,000 more arriving each year.

In 2005, 10. 5 million illegal migrants were there in the United States. And if illegal migrants are legalized then also the problem may crop up. The legalization of illegal immigrants would lead to much increase in fiscal costs. Moreover, The education standard of the illegal immigrants will always remain low even by legalization and there always be fewer job opportunities for them in the American labor market

According to the research conducted by George Borjas, a Harvard economist, “there had been a reduction of wages among American poor citizens during the 1980s and 1990s by 4. 8% [91] and, is may reduce much further if border security is reduced. Even the supply of illegal alien labor has affected black poor. Illegal migrants are taking larger share of the job market, and are into 12 to 15 million jobs in the United States been artificially dampened which resulted in the reduction of average annual earnings by approximately 4 to 6 percent and thus hamper the inflation.

Some reformers and political analysts too advocates that the immigration problem has worsened after Congress and the Clinton administration approved the North American Free Trade Agreement, more commonly known as NAFTA. The immigration as a whole has always been a boon for the American Economy but if illegal immigration is not curtailed and continues to grow unabatedly, then it may have a disaster impact on the whole economy in the long run. All the welfare and educational facilities of the border states especially California, are being overloaded to the breaking point.

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