Illegal Immigration Damages the U

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Illegal Immigration Damages the U Powered By Docstoc
     Keming Li
Miriam Mumba
   Introduction

   Reasons for Immigration

   Demographics

   Economic Impact

   Statistics

   Aggregate Figures

   Recommendations

   Conclusion
   Illegal immigration is the movement of people
    across borders in a way that violates the
    immigration laws of the destination country.

 Legal Immigration
 Illegal Immigration

   Legal immigration is doing just fine-Legal
    immigrants who are playing by the rules and go on
    to be US citizens are not the issue.

   Illegal immigration is not doing fine.
   "The U.S. Census Bureau showed that the nation's immigrant
    population (legal and illegal) reached nearly 38 million in
    March 2007, one-third of which are comprised of illegal

   "A 1997 study by the American Academy of Sciences found
    that the cheap labor of illegal immigrants and poor
    immigrants caused a 44% decrease in wages among the
    poorest Americans from 1980 to 1994.“(CIS)

   "Tax payments in illegal households are only 28% of other
    households primarily due to much lower levels in education,
    which subsequently results in low incomes and even lower tax
1. First group of illegal immigrants enter the
US to enjoy a better economic life.
   Economic oppression
   Unemployment
   Poverty
2. Second group consists of:
   Visa holding tourists
   Highly skilled workers-eventually become illegal
   Visa holding missionaries,students etc.
   Illegal immigrants are mainly from Mexico-

   Central America -11%

   East Asia-9%

   South America and Europe -8%
     How does Illegal Immigration hurt the Economy?
         Higher unemployment rate for domestic low skilled
Dollars                                    Dollars

                           Short-Run                      Long-Run
                              Supply                                Supply

w0                                         w0

w1                                         w1

                              Demand                                Demand

            N1   N0   E1      Employment             N0     N0 +         Employment
   Separate research by both George J. Borjas,
    (the Robert W. Scrivner Professor of
    Economics and Social Policy at Harvard
    University) and Paul Samuelson (Nobel Prize-
    winning economist from MIT) has shown that
    illegal immigration had a substantial effect on
    reducing the economic status of U.S. poor
    individuals, while benefiting middle class
    individuals and wealthier Americans.
• Burden on tax-based resources
   Imbalance in immigration quotas

   Millions of US Dollars sent outside the country

   Overcrowding and financial burdens on public

   Increase in Health Costs

   Incarceration
Economic Costs:
 $11 Billion to $22 Billion is spent on welfare to
  illegal aliens each year

   $2.2 Billion is spent on food assistance programs
    such as food stamps, WIC

   $2.5 Billion is spent on Medicaid

   $1.6 Billion is spent on federal prison and court
   $1.4 Billion is spent on Federal Aid to schools

   Original Consumer Surplus (A)
   Original Producer Surplus (B+D’)

   illegal Immigrant
    ◦ Consumer Surplus (A+B+C)
    ◦ Producer Surplus (D+E+F)
   For Producer Surplus, these aggregate surplus estimates are
    invariably small, when computed as percentages of GDP.
    (George Borjas, Gordon Hanson, and others)

   For Consumer Surplus, ten percent more immigration, lowers
    prices for low-skilled services by about 1.3%(Patricia Cortes),
    which contribute to less than 1% of the consumption.

   For the aggregate cost, the National Research Council
    estimated that in 1996 immigration imposed a short-run
    fiscal burden on the average U.S. native household of $200,
    or 0.2 percent of U.S. GDP.

   The Center for Immigration Studies (CIS) shows that as of
    2002 illegal immigration caused an annual income loss of
    0.07 percent of U.S. GDP.
   In the short run, the benefits and costs will be
    evened out based on the empirical evidence.
    However, the wages of the low-skilled
    domestic workers will decrease.
   In the long run, the costs will out-weight the
    benefits. Employment and wages for the low-
    skilled domestic workers will decrease
    because the demand for low-skilled workers
Is there a solution?.......Yes!
 Increase influx controls
 Improve removal management and entry
 Money that goes to pay for those who enter
  the country illegally must be allocated to the
  homeless, victims of abuse, schools,
  hospitals etc
The notion that it is ok to break the law as long
 as one’s reasons are for a good cause is
 flawed. Immigrating to America legally, easily
 or not, is praise-worthy, but breaking the
 laws of the land and entering is not!

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