The effect of immigration on US economy Essay Example | Topics and Well Written Essays - 1500 words

The effect of immigration on US economy - Essay Example Because of their presence in United States, immigrants normally increase the tax revenue of the government. This is because most of them engage in economic activities within the country. However, there is a general consensus that immigrants who are less educated, and earn low income, are a fiscal drain to the country(Davies, 380). Furthermore, immigrants who are highly educated, earning high income are a fiscal benefit to the government. The third issue is that immigration affects employment opportunities of workers who are born in America (Brumfiel, 459). A basic economic theory gives a prediction that immigration should lead to a gain for the native workers. To achieve this objective, there is a need of redistributing income amongst immigrants and native workers. It is therefore right to explain that immigration plays an important in increasing the economic growth of United States. Immigration helps in increasing the revenue base of the US government. Anderson (24) explains that the presence of immigrant workers in the US labor market leads to the collection of approximately 1.6 trillion US dollars per year (Davies, 379). The government may use this money to develop its economy. The government can spend this type of money on security, defense, labor, foreign relations, etc. However, Miller (13) argues that despite this contribution to the economy of United States, the Native Americans do not benefit. Of this amount, a large percentage goes to the payment of labor and other wages to the immigrant workers. In fact, the percentage stands at 97.8%. This is a massive percentage, and it leaves little room for the government to use this money for development projects. However, Dvorak (23) maintains that with proper planning and management, chances are high that the wage rate of immigrant workers can reduce. This is beneficial to the government, mainly because it woul d remain with money to use for development