Does immigration actually boost the economy and create jobs for native workers?

Why do successful societies welcome newcomers despite the political controversy?

Wharton professor Zeke Hernandez debunks the myths surrounding migration in The Truth About Immigration. Discover the data-backed economic benefits of newcomers, from job creation and innovation to safer communities. Get the facts before joining the debate—explore Hernandez’s evidence-based case for immigration below and understand why welcoming newcomers is the key to a prosperous future.

Genres

Economics, Politics, Society, Culture

Introduction: Find out how immigration enriches your community and boosts the economy

The Truth About Immigration (2024) offers a fact-based, comprehensive, and nonpartisan look at immigration, debunking common myths and fears. It reveals the overwhelmingly positive impact of immigration on job creation, investment, innovation, cultural vitality, and national security, showing how newcomers benefit local communities and the nation as a whole.

Imagine you’re a young person from Uruguay with a rare opportunity to study in the United States on a full-tuition scholarship. But as you consider this path, you’re plagued by doubts. Would moving to America mean abandoning your commitment to improving the economic fortunes of people back home? This was the dilemma faced by the author, Zeke Hernandez, who grappled with whether his decision to emigrate would deprive a deserving American of a scholarship, a job, or even a potential partner. This personal conflict mirrors a broader debate on the impact of immigration on both immigrants and the native-born.

In this summary, you’ll learn about the significant economic and social contributions of immigrants, the historical context of immigration policies, and the ongoing debates that shape public perception. You’ll gain a comprehensive understanding as to why successful societies welcome newcomers and how these insights can inform current and future immigration policies. So get ready to explore the compelling evidence and narratives that challenge the simplistic views of immigrants as either villains or victims.

Immigrants as key players in local economies

Pollo Campero, a Guatemalan fast-food chain, started with a mobile cart in Guatemala City in 1971 and grew to become a household name in Central America. By 2002, the company decided to expand into the US, starting in Los Angeles due to its large Central American population. It hoped to make $850,000 in the first year, but the store hit $1 million in just 47 days. Similar success followed in Houston and Washington, DC, leading to 51 stores by 2009. Its strategy of targeting Central American immigrants, others of Latin American descent, and eventually the broader American market fueled its rapid growth.

Pollo Campero’s success illustrates how immigrant networks can drive investment and create jobs, in contrast to traditional tax incentives used by governments, which often result in high costs and disappointing returns. For example, the deal between Wisconsin and the Chinese manufacturing giant Foxconn, which promised significant investment and job creation, ultimately failed. Foxconn pledged to build a $10 billion LCD screen factory employing 13,000 people in exchange for $4 billion in subsidies. But due to declining global demand for LCDs and the high cost of manufacturing in the US, Foxconn’s investment fell short. By 2019, only $280 million had been invested, and a mere 281 workers were hired, far from the original promise.

Studies confirm that immigrant communities enhance the profitability and sustainability of foreign investments. For example, South Korean banks thrived in Chinese provinces with large ethnic Korean populations due to trusted local networks. This local knowledge and trust were essential for successful business operations.

The long-term benefits of diverse immigration are significant. Historical migration patterns show that communities with various immigrant backgrounds attract more investment and achieve greater economic complexity. Hazleton, Pennsylvania, revitalized economically due to Mexican-owned factories, including those by Bimbo and Mission Foods, which settled there partly because of the existing Mexican immigrant community.

Understanding these dynamics reveals the deep connection among immigration, investment, and job creation. Welcoming immigrant communities leads to sustainable economic growth, transforming declining towns into hubs of economic activity and making local economies more prosperous and diverse.

Immigrants boost innovation and public finances

Immigrants play an essential role in fostering innovation across various fields, including technology, medicine, and entrepreneurship. Their unique experiences and backgrounds bring fresh perspectives, enabling them to introduce and develop new ideas and solutions. For instance, Dr. Alessio Fasano, an Italian immigrant, revolutionized the understanding and treatment of celiac disease in the US, and Dr. Hari Har Parshad Cohly, an Indian doctor, saved a patient’s leg from amputation by recalling Ayurvedic medicine techniques he learned in India.

Economically, immigrants are significant contributors. They’re highly represented in high-growth startups and play a key role in creating diverse consumer products and services. Research shows they’re more likely to file patents and start new businesses, leading to technological advancements and job creation. Immigrants also influence everyday products, from foods like tortillas and sushi to activities like yoga and soccer, enriching the cultural and economic landscape.

The fiscal impact of immigrants is positive. On average, they contribute more in taxes than they consume in public services. While local governments may bear initial costs for education and services, the long-term benefits at the federal level far exceed these expenses. A 2017 analysis estimated that the average immigrant in the US makes a net positive contribution of $259,000 over 75 years, considering taxes paid versus public services consumed.

But do some immigrants drain public resources? Actually, even low-income and undocumented immigrants contribute economically. They pay taxes and help sustain essential services. Despite the belief that they might overuse public services, their overall impact remains positive due to their long-term contributions and the success of their descendants. Another misconception is that immigrants take jobs from natives. In reality, they often fill essential roles that natives don’t, complementing the native workforce rather than displacing it.

With an aging population and declining fertility rates, the US depends increasingly on immigration to sustain its social security and healthcare systems. This demographic shift means fewer native-born taxpayers, making the economic contributions of immigrants crucial to funding these programs. As other countries also face similar challenges and reform their immigration systems, the US must recognize the economic and social benefits immigrants bring to ensure a prosperous future.

It’s clear that immigrants significantly enhance innovation, contribute positively to the economy and public finances, and are essential for the long-term sustainability of social programs. Their diverse experiences and willingness to contribute make them invaluable assets to any nation.

The truth about immigrants and job markets

American manufacturers face significant challenges in finding and keeping workers, with an estimated two million positions likely to go unfilled by 2030. Many native workers aren’t interested in manufacturing jobs, which can involve tough conditions like wearing extensive protective gear and working inconvenient shifts. But immigrants have stepped in to fill these roles, proving to be reliable and hardworking employees.

Katie Malnight, the COO at Engauge Workforce Solutions, discovered that immigrants could solve the workforce shortages in manufacturing. She found that Burmese refugees, despite language barriers and cultural differences, were eager and dependable workers. By offering English lessons and implementing cultural mediation programs, Malnight successfully integrated these workers into the manufacturing sector, improving both the stability of the workforce and the livelihoods of the immigrants.

Immigrants and native workers bring different skills to the job market. Immigrants often take on lower-level tasks as they gain a foothold in the economy, allowing natives to specialize in better-paying roles that suit their strengths. This dynamic leads to overall economic growth and benefits both groups. For instance, in North Carolina, farmers rely heavily on immigrant labor because native workers are unwilling to take on farm jobs, even during times of high unemployment. This division of labor highlights how immigrants fill essential roles that support economic stability.

The impact of immigrant talent is also evident in sports. The US men’s national soccer team, historically bolstered by immigrants and their children, achieved significant success in the early twentieth century. This trend continued post-1990, as the team’s performance improved alongside rising immigration levels. Immigrant players brought unique strategies and skills, elevating the team’s overall performance and introducing new playing styles.

The traditional economic model that views immigrants merely as laborers is outdated. Immigrants contribute as consumers, taxpayers, investors, and innovators, playing diverse roles that enhance economic progress. They expand the labor force and introduce unique talents and ideas, leading to new businesses and innovations. This multifaceted contribution helps expand the economy and creates opportunities for everyone, demonstrating the substantial benefits that immigrants bring to the American workforce and society as a whole.

Integration versus assimilation, and community safety

The integration of immigrants into US society is a dynamic process by which they can maintain their cultural identities while becoming part of the broader community. This integration, as opposed to complete assimilation, benefits both the immigrants and the society they join. Immigrants to the US bring diversity that enriches the cultural fabric of their new home, leading to more vibrant and inclusive communities.

Economically and politically, immigrants integrate at consistent rates, much like they did in the past. The children of immigrants often achieve higher earnings and greater upward mobility compared to their native-born peers. This economic progress is partly due to immigrant parents’ strategic choices in relocating to areas with better job growth and rising economies. Politically, immigrants adopt local attitudes and actively participate in the democratic process, contributing to the nation’s political landscape.

Cultural integration is more nuanced and involves balancing the preservation of your original culture with adopting new cultural norms. Immigrants often achieve proficiency in the local language and may give their children American-sounding names. These changes reflect a blend of their heritage with their new identity, demonstrating a successful integration into society while retaining essential aspects of their cultural background.

Contrary to popular belief, immigrants, including those who are undocumented, are less likely to commit crimes than native-born citizens. Numerous studies have shown that immigrants reduce crime rates, debunking the myth of immigrant criminality. Programs like Secure Communities, designed to enhance safety, don’t improve security but instead foster unnecessary fear and distrust within communities.

The tragic story of Mollie Tibbetts, a college student from Iowa who was murdered while out for a run, became a focal point for anti-immigrant rhetoric. Her death was manipulated to stoke fear against undocumented immigrants because her killer was an undocumented immigrant from Mexico. Despite this narrative, extensive research shows that immigrants, including undocumented ones, are less likely to commit crimes than native-born citizens. This misuse of Mollie’s story exemplifies how media and political narratives can distort reality, fostering unnecessary fear and distrust within communities.

The national security of the US is strengthened by immigration. Immigrants contribute significantly to technological advancements and innovation. Restrictive immigration policies increase the risk of losing talented individuals to other countries, weakening America’s competitive edge. The German Jewish scientists fleeing Nazi persecution and revolutionizing America’s innovation landscape illustrate this point. These scientists brought their expertise to the US, boosting its technological prowess and contributing to its rise as a superpower.

In summary, the integration of immigrants leads to economic and political gains, cultural enrichment, and enhanced national security. Dispelling myths about immigrant criminality and overcoming fear-based policies are essential to fostering a cohesive and prosperous society.

The benefits of welcoming newcomers

Tommy, a new boy in school, had lived in the US for years and spoke English with an American accent. Despite this, his classmates teased him because his mannerisms and way of talking were seen as too American, making him stand out. Most of the other kids were also immigrants, and Tommy’s American ways clashed with their attempts to fit in to the local culture. The fear of exclusion drove even former outsiders to perpetuate relational conflict, as fitting in was seen as crucial to their social acceptance.

This dynamic is common when immigrants bring a wealth of diversity to their new communities, leading to both productive and unproductive conflict. When managed well, diversity enriches a group with new ideas and perspectives, fostering creative problem-solving and innovation. But when differences aren’t handled thoughtfully, they can lead to exclusion and relational conflict.

Despite the positive views held by a majority, there are persistent misconceptions about immigrants and their impact on society. Many people overestimate the number of immigrants and misunderstand their contributions. Providing accurate information and increasing direct exposure to immigrants can help dispel these myths and reduce prejudice. Studies show that living alongside immigrants or learning their stories can significantly shift opinions and foster a more welcoming environment.

Undocumented immigrants, in particular, play an essential role in the economy. They fill jobs that many native workers avoid and enable more extensive workforce participation among natives, especially in roles like childcare and eldercare. For example, Alberto, a talented barber from South America, not only excelled at his trade but also aspired to open his own barbershop. His undocumented status limited his opportunities, illustrating the broader economic impact the country would see if such immigrants could integrate fully and invest in their communities.

The Martinez family from El Salvador underscores the human side of the debate on undocumented immigration. Their children arrived in America as kids and have excelled academically and in community involvement. Despite their achievements and strong ties to their community, however, their undocumented status presents significant obstacles. For instance, they struggle to fund their college education without access to financial aid, causing disruptions in their academic progress. Allowing families like the Martinezes to remain and thrive aligns with ethical principles and practical benefits, ensuring society reaps the rewards of their hard work and dedication.

Recognizing the dual nature of diversity and the significant contributions of undocumented immigrants underscores the need for policies that embrace these realities. This approach not only fosters inclusivity but also leverages the full potential of all community members for collective growth and prosperity.

The need for essential immigration reform

The US immigration system is outdated and needs reform to meet modern economic and social needs. Primarily designed in 1965, the system favors family reunification over economic needs, limiting the influx of necessary talent and leading to a significant worker shortage.

US immigration quotas should match economic demands, as immigrants contribute positively to job creation and productivity. The 85th percentile rule, used to set speed limits, illustrates a principle for immigration: trust that people will make reasonable decisions.

A story about Mexican seasonal workers before 1965 highlights this. They crossed the border to work temporarily and returned home. The 1965 immigration law imposed strict limits, disrupting this pattern and leading to a surge in undocumented migration. Blocking legal pathways forces people to find alternative routes, often creating bigger issues.

The US system also unfairly limits immigrants from certain countries. For instance, an Indian graduate may wait up to 195 years for an employment-based visa due to per-country caps. This absurdity underscores the need for a more flexible system that adjusts to global and economic realities.

The 1986 Immigration Reform and Control Act (IRCA) offered amnesty to millions of undocumented immigrants but failed to address the root causes of illegal immigration. This experience shows that enforcement alone isn’t enough; the system itself needs comprehensive reform.

Understanding these challenges and embracing a more adaptable, economically driven immigration policy could transform the US system. Acting out of factual optimism rather than fear would ensure that the country benefits from the positive contributions of immigrants. This would help meet the demands of the evolving economy while maintaining the social fabric of the nation.

Conclusion

In this summary to The Truth about Immigration by Zeke Hernandez, you’ve learned that immigrants significantly enhance their host societies by driving innovation, creating jobs, and enriching cultural life. They contribute to economic growth and fill essential roles, debunking common myths about their impact.

You can help foster an inclusive and prosperous society by supporting policies that welcome and integrate immigrants and promoting accurate information about their positive impact.