Immigration Study: Legalization Grows GDP by $1.5T; Deportation Costs U.S. $2.6T

In: Labor|Public policy|economics|immigrants|politics

7 Jan 2010

The Center for American Progress released its latest study on the future impact of immigration policy.  They looked at several plausible scenarios and modeled the economic effects of each.  Some of the key findings:

  • Comprehensive immigration reform [CIR] generates an annual increase in U.S. GDP of at least 0.84 percent. This amounts to $1.5 trillion in additional GDP over 10 years. It also boosts wages for both native-born and newly legalized immigrant workers.
  • The temporary worker program generates an annual increase in U.S. GDP of 0.44 percent.   This amounts to $792 billion of additional GDP over 10 years. Moreover, wages decline for both native-born and newly legalized immigrant workers.
  • Mass deportation reduces U.S. GDP by 1.46 percent annually. This amounts to $2.6trillion in lost GDP over 10 years, not including the actual cost of deportation.2 Wages would rise for less-skilled native-born workers, but would reduce wages for higherskilled natives, and would lead to widespread job loss.

In a nutshell, according to the Center, CIR would provide the strongest increase in GDP, nearly twice as much as a guest-worker program alone.  Mass deportation actually reduces GDP!  This is not surprising if you read what actual economists have been saying for a long time.  Interestingly, the libertarian CATO institute came up with similar figures.

Read the full report here

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3 Responses to Immigration Study: Legalization Grows GDP by $1.5T; Deportation Costs U.S. $2.6T

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Bryan J.

January 8th, 2010 at 10:17 am

I love the cartoon. I wrote a post on my blog stating, more or less, the same thing.

Let’s see if CIR, however, can adequately address the future flow of immigrants.

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Rey Lopez-Calderon

January 8th, 2010 at 4:41 pm

The future flow is a big problem because unions are seriously against any temporary worker provision.

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Bryan J.

January 9th, 2010 at 10:19 am

Speaking of Unions, I believe they are causing some homelessness amongst the undocumented(and others) on Long Island. Newsday, the paper here, reported recent

http://www.longislandwins.com/blog/in_the_news/no_options_for_immigrants_in_h.php

Housing on Long Island is prohibitively expensive and high property taxes have something to do with that. The high property taxes result, in part, from the exorbitant amount of money that the police make here: an average of over $100,000. In many instances, the police here get paid that much to patrol low-crime, well-to-do residential areas. The high pay has to be related to the police unions.

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While some people look at cockroaches as disgusting pests, I view them as resilient organisms that predate humans and will likely outlive us as well. People of color, the poor, the downtrodden, and the oppressed, much like cockroaches, are often despised, feared and in some cases have been the objects of extermination.

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