The Impact of Immigration on the Economy of the USA

The USA is one of the most attractive countries to come for many specialists and workers from different countries of the World. Every year, a big number of immigrants come to the country to find good jobs and start a new life.

The negative effects of immigration are actively discussed in the society: immigrants compete with the local specialists for the jobs, illegal immigrants do not pay taxes and cause social problems, and oth. However, some authors state that the US immigration has many good effects on the country’s economy. The aim of the essay is to study positive outcomes of legal US immigration.

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The immigrants become the participants of the US labor market. When they offer their skills to the employers, they compete to the local workforce, and the wages are assumed to decrease. However, the study (Smith et al 4) showed that this influence is actually very low.

Besides, the local workforce start improving their skills by attending trainings, getting additional education etc., which is a good outcome for the US economy. Finally, hiring immigrants who are ready to receive low salaries is beneficial for employers: their companies’ services and goods are sold at a lower price because the expenses for the workers’ salary are low, and the profit is high (Smith et al 4).

The study of how the local workers and immigrants cooperate also demonstrated the positive effect of immigration. Domestic workers choose jobs where they are the most effective, and the production process becomes more advanced (House of Lords 103). This process is called specialization: workers are given the responsibilities according to their skills, and the productivity grows (Bhatta 314).

On the other hand, immigrants come to the USA not only as workers but as consumers of the US goods and services. They pay the earned money for things they buy, which is an additional source of salary for workers and that of profit for the companies.

However, the US immigrants are not only workers. Many specialists come to the USA to work in the field of science, engineering, medicine, technology, management. They bring their talent and experience to the companies and develop the strongest industries of the US economy (House of Lords 103).

Besides, it is necessary to discuss the fiscal effect of immigration. On the one hand, immigrants use services offered by the state, and the budget money is spent to provide them. On the other hand, immigrants are tax payers, which means that they bring money to the US budget.

The study (Smith 11) showed that in the long run the total fiscal effect of immigration is positive. There are a few states where many immigrants come: the local power has to spend too much to support them, and the effect is negative, but in most states it is positive. Educated immigrants who get prestigious jobs pay higher taxes to the budget, and this is also beneficial for the whole state.

Thus, it is reasonable to talk about the positive influence of immigration on the economy of the US. People coming from different countries become workers, consumers and tax payers and make their contribution to the economy. They also bring their talents and knowledge and enrich the production and management process. The government’s immigration policy is the means of strengthening the positive outcomes of immigration and minimize those negative.


Bhatta, Gambhir. International Dictionary of Public Management and Governance. Armonk, NY: M.E. Sharpe, 2006.

House of Lords. Economic Impact of Immigration 1st Report of Session 2007-08: Evidence. London: The Stationery Office/Tso, 2008.

Smith, James P. The New Americans: Economic, Demographic, and Fiscal Effects of Immigration. Washington, D.C.: National Acad. Press, 1997.


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