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By the end of this section, you will be able to:

  • Analyze historical patterns of immigration
  • Explain economic effects of immigration
  • Evaluate notable proposals for immigration reform

Most Americans would be outraged if a law prevented them from moving to another city or another state. However, when the conversation turns to crossing national borders and are about other people arriving in the United States, laws preventing such movement often seem more reasonable. Some of the tensions over immigration stem from worries over how it might affect a country’s culture, including differences in language, and patterns of family, authority, or gender relationships. Economics does not have much to say about such cultural issues. Some of the worries about immigration do, however, have to do with its effects on wages and income levels, and how it affects government taxes and spending. On those topics, economists have insights and research to offer.

Historical patterns of immigration

Supporters and opponents of immigration look at the same data and see different patterns. Those who express concern about immigration levels to the United States point to graphics like [link] which shows total inflows of immigrants decade by decade through the twentieth century. Clearly, the level of immigration has been high and rising in recent years, reaching and exceeding the towering levels of the early twentieth century. However, those who are less worried about immigration point out that the high immigration levels of the early twentieth century happened when total population was much lower. Since the U.S. population roughly tripled during the twentieth century, the seemingly high levels in immigration in the 1990s and 2000s look relatively smaller when they are divided by the population.

Immigration since 1900

The graph shows that number of immigrants between 1900 and 1909 was (in thousands) 8,202. In between 1910 and 1919 the number was 6,347. Between 1920 and 1929, the number was 4,296. Between 1930 and 1939, the number was 699. Between 1940 and 1949, the number was 857. Between 1950 and 1959, the number was 2,499. Between 1960 and 1969, the number was 3,213. Between 1970 and 1979, the number was 4,248. Between 1980 and 1989, the number was 6,248. Between 1990 and 1999, the number was 9,775. Between 2000 and 2008, the number was 10,126.
The number of immigrants in each decade declined between 1900 and the 1940s, but has risen sharply in recent decades. (Source: U.S. Department of Homeland Security, Yearbook of Immigration Statistics: 2011 , Table 1)

Where have the immigrants come from? Immigrants from Europe were more than 90% of the total in the first decade of the twentieth century, but less than 20% of the total by the end of the century. By the 2000s, about half of U.S. immigration came from the rest of the Americas, especially Mexico, and about a quarter came from various countries in Asia.

Economic effects of immigration

A surge of immigration can affect the economy in a number of different ways. In this section, we will consider how immigrants might benefit the rest of the economy, how they might affect wage levels, and how they might affect government spending at the federal and local level.

To understand the economic consequences of immigration, consider the following scenario. Imagine that the immigrants entering the United States matched the existing U.S. population in age range, education, skill levels, family size, occupations, and so on. How would immigration of this type affect the rest of the U.S. economy? Immigrants themselves would be much better off, because their standard of living would be higher in the United States. Immigrants would contribute to both increased production and increased consumption. Given enough time for adjustment, the range of jobs performed, income earned, taxes paid, and public services needed would not be much affected by this kind of immigration. It would be as if the population simply increased a little.

Questions & Answers

what Make things scarce
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Soudani
for the stability and growth of any reign.
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Christiana Reply
Inflation is a general increase in price levels
Zuko
is the action of inflating something
Abdifatah
inflation is the persistent increase in general price level of goods and services in an economy over a considerable period of time .
Tetteh
inflation is the general increase of a commodity in a particular period of time.
Turay
inflation is a general increase in price levels of commodities
shehu
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inflation is the period of persistent rise in the general level of the price of goods services over time
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we have creeping inflation, demand pull inflation ,cost push inflation, and galloping inflation .
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is a monetary from policy that's authorized of country encharces
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the main definition is given by prof Lionel Robbins as a social science which studies human behavior between ends and scarce which have alternative uses
olajumoke
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Julie
economic is the wealth of a country.
Moussa
monetary policy is refer to as being expansionary or contractionary.
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Au
money market is base on short term loan which is within one year period while capital market is long term loan more than one year...
Muhammad
money market is a market were short term loans are dealt with while capital market is a market were long term loans are traded
Ebrima
What is mean by monetory policy
Lovely
monetary polices are rules that control the rate of monetary exchange in an economic as a whole.
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wealth of the nation
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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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