Day 4: Immigration Malpractice
“Republicans are better for the economy.”
I kept hearing that during the first Trump administration. Then, I heard it again during the months leading up to the election last year. Even in Mexico, people had the impression that because Trump is rich, conservative, and loud, he will be better for the economy.
My intention is not to produce a political blog. I’m more interested in economics, innovation, and businesses that create broader prosperity for more people without killing the planet in the process. Governments have a large influence in all of the above, for better or worse.
Given that economic growth is fundamental to most people’s idea of “good for the economy,” we might expect to see policy initiatives that are good for economic growth.
Instead, during his first few days in office, the President unleashed a flurry of anti-immigration executive orders.
The inconvenient truth for those who don’t like immigrants is this: Immigration is good for our economy.
There is so much data backing this up that even his advisors must realize this.
If the MAGA Republicans are successful in repressing immigrants, deporting thousands, and driving thousands more into hiding (ie, not working or going to school), the anti-immigration actions to appease a racist follower base will be a very high price for the rest of us to pay.
I did some research and came across several studies, including this gem from The Analysis Group that was updated in 2023.
Read on.
Both documented and undocumented immigrants pay taxes.
Immigrant households contributed approximately 15% of total federal income tax contributions in 2022.
Undocumented immigrant-headed households paid $21.5 billion in federal taxes and $13.6 billion in state and local taxes, despite not qualifying for many government benefits.
The US population is getting older at the same time women are not having as many babies. (Go figure.)
The U.S. population is aging, with the median age rising from 28 years in 1970 to 39 years in 2023.
Immigrants are an important source for U.S. labor force growth helping to offset the large-scale retirement of Baby Boomers.
Anti-immigration policies can harm economic growth by reducing the available labor force, hindering innovation, and discouraging job creation.
Restrictions on low-wage labor flows can negatively affect firms’ revenues and investments, as well as depress U.S. labor force growth, which is a key driver of economic growth.
Immigration helps counteract declining birth rates and supports labor force growth, which is a key metric for economic growth.
The US Census Bureau expects immigrants to drive most of the labor force growth in the U.S. through 2050
Restrictions on immigrant visas would reduce the pipeline of workers, potentially impacting long-term U.S. economic growth.
Immigrants work harder. They are responsible for large contributions to US innovation and job creation.
Immigrants participate in the civilian labor force at higher rates than native-born U.S. workers.
Immigrants start more businesses compared to US born citizens, driving job creation.
Since 2000, immigrants have won 40 percent of Nobel Prizes in Chemistry, Medicine, and Physics.
In 2023, 22% of Fortune 100 CEOs were born outside the U.S., including leaders of four of the most valuable public companies: Nvidia, Google, Microsoft, and Tesla.
Almost 50% of Fortune 500 firms were founded by either an immigrant or a child of immigrants.
More than half of America’s startup companies valued at $1 billion were founded by immigrants. Over 70% of these startups had immigrants in key management or product development roles.
Anti-immigration policies could hurt the economy and our innovation engine over the long haul.
U.S. anti-immigration policies generally harm economic growth, reducing labor force availability, innovation, and consumer demand.
Immigration restrictions can lead to slower economic growth and job shortages in key sectors, from low-wage to high-tech.
Overall, immigration policy under the new Trump administration could reduce 2025 GDP growth by between 0.1 and 0.4 percentage points, or by $30 to $110 billion. (Brookings Institution)
President Trump was surrounded by immigrants at the inauguration.
To name drop a few:
Elon Musk
Born in Pretoria, South Africa.
Immigrated to Canada at age 18 and later became a naturalized U.S. citizen in 2002.
Sundar Pichai, CEO, Google
Born in Tamil Nadu, India.
Became a naturalized U.S. citizen in 2002 and is the current CEO of Google.
Melania Trump, First Lady
Born in Slovenia.
Became a naturalized U.S. citizen on July 28, 2006.
Priscilla Chan, Facebook CEO Mark Zuckerberg’s wife
Child of Chinese-Vietnamese immigrants who were refugees fleeing Vietnam by boat after the fall of Saigon in 1975.
This is part of my First 100 days response to the other first 100 days happening in DC.