Effects of immigration on the American Public

Effects of immigration on the American Public - OR - Failed Policies brought to you compliments of the Republican and Democratic Parties
by Mike Crane

Almost every poll shows that a vast majority of American citizens are opposed to our current immigration polices, both legal and illegal. I am not sure why some insist on making an issue of that statement, it is just a fact. Poll after poll show the same thing.

Despite the polls showing a great desire by the American public to make some serious fundamental changes, nothing changes. Lets repeat that again for some of our more partisan readers and put it in red and bold:

Despite the polls showing a great desire by the American public to make some serious fundamental changes, nothing changes.

On the other hand the large multi-national corporations push for continuing or even expanding current immigration policies. They push for more illegal immigration by proposing amnesty programs by trying to disguise them as "guest worker" programs (See: Georgia Senator Chambliss on immigration). They push for ever higher quotas on H1-B (and L and other alphabetic soup visas) visa programs to increase the number of legal immigrants. Of course these millions of immigrants only take jobs Americans will not do, so they say.

Lets take a look at that claim:

These millions of immigrants only take jobs Americans will not do.

Ladies and Gentlemen, when listening to these new age rocket scientists - do they ever explain how our country managed to survive before the Immigration Act of 1965? Of course not, you and I both know that this is not a true statement, it is just plain myth at best, deliberate propaganda at worst.

Back to the wisdom of the American public, poll after poll shows that they want a fundamental change, they know something stinks in the wood pile! The corporate special interests and politicians pandering for votes want to continue our failed policies.

With two opposing views, there is always a struggle for power in our government, the prevailing side implements the policies they prefer.

Since 1965 on the issue of immigration, both legal and illegal, the winner has been the special interests and the loser has been the American public. Both the Republican and Democratic Parties which have a virtual monopoly of electing our government are both representing special interests and ignoring the people.

It is some time for a fundamental change on our country's legal and illegal immigration policies. The time for band-aids has passed.

For the doubting Thomases, I hope the following article provides a glimmer of light through the darkness.

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Census Bureau: Citizen Incomes Down Poverty Up

National Data by Edwin S. Rubenstein

Census Bureau: American Living Standards Now Seriously Impacted By Immigration

Most Americans are worse off today than at the start of the millennium. Median household income declined for an unprecedented fifth straight year in 2004, the poverty rate rose, and health insurance coverage declined, according to the Census Bureau’s latest report card on the nation’s economic well- being released on August 30th.

Let’s look at the facts.

Comparing the growth in real median income for various foreign and native households in 2004:

Households headed by foreign-born non-citizens: +2.4 percent
Household headed by naturalized citizens: -2.2 percent
Households headed by U.S.-born persons: -0.5 percent
Households headed by Blacks: -1.0 percent

This pattern is exactly what one would expect if U.S. employers preferred the newest immigrants—i.e., non- citizens—to native minorities, whites, and previous— i.e., naturalized – immigrant workers.

Although recent immigrants may be poorly educated, lacking even the limited skills of earlier immigrant groups, they are willing to work for far less, lowering incomes of unskilled natives as well as immigrants.

Poverty: Overall, the poverty rate increased to 12.7 percent, from 12.5 percent in 2003. Once again, natives and foreign-born individuals moved in different directions:

Poverty fell 0.1 points, to 17.1 percent, for foreign- born persons

Poverty rose 0.3 percent, to 12.1 percent, for native-born persons

Health Insurance: the fraction of foreign born persons without health insurance declined in 2004, according to the Census Bureau report, while the uninsured rate increased among natives.

Historically, income and poverty rates fluctuate with the business cycle. But not in 2004, when robust job creation and GDP growth failed to lift living standards. The best explanation: immigration has finally severed the link between economic growth and living standards.

The foreign-born share of the U.S. labor force rose to a record 15 percent in 2004 from 14.4 percent in 2003. As recently as 1990 less than 10 percent of the labor force was foreign born.

A study by Professor George Borjas finds that each 10 percent rise in the U.S. labor force due to immigration reduces wages of native born workers by about 3.5 percent. At this displacement rate, immigrant workers would have lowered native wages by 5.3 percent (3.5 percent X 15/10) in 2004 and 5.0 percent (3.5 percent X 14.4/10) in 2003.

This implies that more than half of the decline in native income last year was due to immigration.

These are averages. Among natives without a high school education, the impact will be larger. Similarly, the negative effect of immigrants on black workers will be greater than average, because they are in direct competition.

Immigration enthusiasts to the contrary, there was always a tipping point at which the impact of immigration on the living standards of native-born Americans would start to show up seriously in the data.

Looks like we reached that point in 2004.

Edwin S. Rubenstein is President of ESR Research Economic Consultants in Indianapolis.

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