They have always battled the headwinds of fear and hate in America. They have even been given their own unique word – Xenophobia – to describe the bigotry they face.
Xenophobia has cast a broad tent over ethnic groups in American history. At one time or another Italians, Irish, Eastern European Jews, and Asians immigrants have faced a backlash over their “yearning to breathe free”.
The Irish had to pass shops advertising jobs with the proviso that “No Irish need apply” as they looked for work in this promised land. The Chinese were spared such prejudice with the passage of the Chinese Exclusion Act of 1882. That law prohibited Chinese immigration for almost a century.
Immigrants Jolt to the Economy
Today Mexicans and Central Americans are taking the brunt of fear and bigotry stoked by MAGA and Donald Trump as well as far-right and racist groups. However, the usual fear-mongering about crime, stealing jobs, and draining the economy do not stand up to the data.
Far from being a drain on the nation’s resources, the rise in immigration last year helped bolster the economy. Remember when jobs far outnumbered workers? Immigrants stepped into the breach. The surge in immigrants allowed the job market to keep growing without fueling inflation.
Many pundits were wringing their hands over inflation when it hit a 40-year high of 9.1 percent in 2022. However, that rate has been in decline since that time. Currently, inflation stands at 3.15 percent. That is a slight uptick from the 3.09 percent in January. In comparison, it is below the long-term average of 3.28 percent.
Other Inflation Fighting Factors
To be sure, a surge in immigration is not the only contributor to the decline of inflation. An infusion of money into the economy from implementation of the Inflation Reduction Act and the CHIPS Act have helped bolster the job market. In addition, oil and gas prices have declined sharply since peaking in June 2022. Not to mention the Federal Reserve Bank’s aggressive rate hikes through last year. On top of that, the supply chain that knotted up during the pandemic has been untangled.
Immigration Impact – The Data
All that said, Immigration has been a key factor in growing the economy while putting downward pressure on prices.
The Hamilton Report, an economic analysis arm of the Brooking Institute, published findings this month on the impact of immigrants on the economy.
“Faster population and labor force growth has meant that employment could grow more quickly than previously believed without adding to inflationary pressures,” write the report’s authors Wendy Edelberg and Tara Watson.
Last year monthly employment growth averaged 255,000. That was about two to four times what economists had predicted. Therefore, the authors contend that “employment growth of nearly 200,000 workers a month is consistent with a healthy, but not too hot, labor market.”
Impact on Spending and Growth
In addition to boosting the workforce, the report contends that immigrant employees contributed to robust consumer spending and continued GDP growth.
Real consumer spending rose two-tenths of a percent last year the report found. Furthermore, the authors anticipate another such increase this year.
As well as aiding consumer spending, immigrant workers also gave a lift to the GDP. Economic activity by immigrants has contributed a .1 percent increase in the GDP per year since 2022, noted Edelberg and Watson.
Federal Reserve Chair Jerome Powell seemed to back up the thrust of the report in testimony to the House Financial Services Committee earlier this month.
“It’s just arithmetic,” Powell told the committee. “If you add a couple million people to an economy, a percentage of them work, there will be more output.”
Powel was careful to tiptoe through the political minefield regarding immigration.
“I think it’s just reporting the facts,” said Powell, “to say that immigration and labor force participation both contributed to the very strong economic output growth that we had last year.”
Housing Demand
Increased immigration may have injected new vigor in the job market with residual economic benefits. However, The Hamilton Project notes that more people means more demand for housing. As a result, some localities have seen a spike in rents.
Immigrants are credited with increasing the value of homes in the U. S. by $3.7 trillion, according to a report by New American Economy. That comes from increased competition for home purchases.
The New American Economy report also found that immigrants increase housing demand by drawing U.S.-born people to areas of growth. Every 1,000 immigrants moving to a country results in 250 U.S.-born people moving there.
Troubling History
Immigration has been an emotional issue in America since the first European settlers arrived and started forcing Native Americans off their land.
At times the country has made overtures to immigrants to occupy empty spaces and build infrastructure. At other times, we have discouraged or legally barred immigrants.
The only consistency surrounding immigration seems to be prejudice.
A KFF/Los Angeles Times survey in September found that most recent immigrants have come to this country for the same reasons many of our ancestors came here. They were seeking greater employment and educational opportunities for themselves and their children.
Most immigrants feel that hope has been fulfilled. Of those polled, 77 percent say they are better off than their parents and 60 percent expect their children’s lives to be even better.
However, there has been a dark side to the American experience of some immigrants. Many have experienced discrimination and 33 percent of those surveyed report being told to “go back to where you came from”.
Crime Myth
Despite claims by right-wing and racist organizations, there is no evidence that immigration – legal or otherwise – contributes to a rise in crime. In fact, research indicates the opposite.
Immigrants are 60 percent less likely to be incarcerated than citizens born in the U.S., according to a Stanford University study
“From Henry Cabot Lodge in the late 19th century to Donald Trump, anti-immigration politicians have repeatedly tried to link immigrants to crime, but our research confirms that this is a myth and not based on fact,” says lead author Ran Abramitzky
Of the 155,373 inmates in federal prisons, 23,947 are immigrants, according to the Federal Bureau of Prisons. The number of immigrants in federal prisons is .0005 percent of the 45,289,690 immigrant population in the U.S.
We Are Them
Unless you are a Native American, you are here because of immigrants. Furthermore, if your ancestors came here before the 20th Century they did not have to qualify for citizenship. There was no immigration system and virtually no restrictions.
In fact, your ancestors might not have qualified for admission to the country under today’s immigration standards.
Current law stipulates that an immigrant wishing to live and work in the United States must obtain a visa. That requires the immigrant to be sponsored by an employer or a citizen or permanent resident who is a close relative. The only exception is an immigrant who qualifies as a refugee.
Made in America – by Immigrants
This country was built in large part by immigrants. For example, the Continental Railroad was built by Chinese immigrants pushing east and Irish immigrants pushing west. In addition, the Golden Gate Bridge was designed and engineered by immigrants. And the list goes on.
Today 13.6 of the country’s residents were born outside its borders. They pay $524.7 billion in taxes. They work in a variety of fields with 22.2 percent owning their own business, 22.8 percent working in science or tech fields, and another 15.2 percent being nurses.
Immigrants fill jobs that would go without them, contribute to tax rolls, and expand our cultural horizons.
More than building infrastructure and contributing to the economy, each generation of immigrants weave their own thread into the American tapestry. And with each thread, America becomes stronger.
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