Economic Impact of Illegal Immigration from Mexico slightly, net Positive, but Why?
Labor Market Impact
Illegal immigrants from Mexico primarily work in low-skilled sectors such as agriculture, construction, and hospitality. They ten d to fill jobs that many American workers are reluctant to take, often accepting lower wages. This has both positive and negative effects:
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It provides a source of affordable labor for certain industries, potentially lowering prices for consumers.
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However, it may put some downward pressure on wages for low-skilled native workers, though economists disagree on the magnitude of this effect.
Fiscal Impact
The fiscal impact of illegal Mexican immigrants is positive:
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They contribute billions in taxes, including $9.8 billion in federal, state, and local taxes in 2019
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They also made significant contributions to Social Security ($11.7 billion) and Medicare ($2.8 billion) in 2019
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However, they may also use some public services, though studies suggest their tax contributions often outweigh the costs of services they use
Economic Growth and Consumer Demand
Illegal immigrants contribute to economic growth in several ways:
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They increase the size of the U.S. economy and enhance the welfare of natives overall.
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Mexican undocumented households had $82.2 billion in spending power in 2019, which stimulates local economies
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They reduce American firms’ incentives to offshore jobs or import foreign-produced goods.
Entrepreneurship
Undocumented immigrants, including those from Mexico, contribute to entrepreneurship:
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In 2018, there were 808,199 undocumented entrepreneurs in the U.S.
These entrepreneurs generated $15.2 billion in business income in 2016
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.Long-term Effects
Studies suggest that legalizing undocumented immigrants could have significant economic benefits:
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It could increase their earnings and consumption considerably.
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Legalization could potentially increase GDP by $1.4 trillion over a decade
While the economic impact of illegal Mexican immigration is complex, most economists agree that the overall effect is a small net positive for the U.S. economy. However, the impacts are not evenly distributed, with some low-skilled native workers potentially facing wage competition, while many businesses and consumers benefit from lower costs
So trump raising this issue is motivated by consideration such has it is good to have economic advantage, but would not give advantage to Mexican because they are afraid that it could change the racial character of the nation. The issue has been in existence for decades but Trump brought it to the forefront, how popular this is, is questionable.
