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Utahns benefit much from the economic impact of immigrants
This is an archived article that was published on sltrib.com in 2008, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A recent study published for President Bush by the White House Council of Economic Advisers on June 20, 2007, titled Immigration Economic Impact, shows that on average, American workers benefit from immigration.

In contrast to anti-immigrant arguments, the report's key findings indicate that immigrants tend to complement (not substitute for) American workers, raising their productivity and income. The research indicates that more then 90 percent of American workers have gained from immigration.

Multiplying the average percentage gains by the total wages of Americans, the report suggests that annual wage gains from immigration are between $30 billion and $80 billion.

The report also found that careful studies of the long-term fiscal effects of immigration have a modest, positive influence. This is completely opposite to the arguments of those who claim that immigrant workers are a drain to the economy. In addition to innovation, immigrants have a positive fiscal impact.

The chairman of the Council of Economic Advisers, Edward P. Lazear, said, "Our review of economic research finds immigrants not only help fuel the nation's economic growth but also have an overall positive effect on the income of native-born (American) workers."

Many arguments from anti-immigrant groups claim that immigrants, particularly Mexicans, do not pay income taxes or Social Security taxes, that they abuse our welfare system, hospitals, public schools and jails.

However, this study proves otherwise and brings to light the positive realities and contributions of immigrants to the U.S. economy. The report finds that immigrants are a critical part of the U.S. workforce, and contribute to productivity growth and technological advancement.

One key finding is that foreign workers with less than a high school education, primarily Mexican and Central American immigrants, are nearly as productive as foreign workers who are scientists or who hold doctorates at 36 percent compared to 41 percent.

The report also found that many immigrants are highly entrepreneurial. It is not surprising to see thousands of small businesses started by newly arrived, particularly Latino, immigrants across the Wasatch Front. The report cites a Kauffman Foundation index that says that entrepreneurial activity among immigrants is 40 percent higher than that of Americans.

The report also found that immigrants and their children assimilate into the U.S. culture. It indicates that even when the majority of first-generation immigrants speak primarily Spanish at home, their children will most likely be English dominant.

Another astounding fact that the report revealed is that immigrants have lower crime rates than average Americans. Immigrants are less likely to be incarcerated.

Also, according to the Social Security Administration, immigrants slightly improve the solvency of pay-as-you go entitlement programs such as Social Security and Medicare. The report indicates that an additional 100,000 net increase in the number of immigrants would have a long-term positive effect on the sustainability of Social Security funding.

The report also revealed that immigrants and their descendants will contribute more in taxes than they will receive in public services or welfare benefits. So, the report concludes that the long-term impact of immigration on public budgets is likely to be positive.

The conclusion of the report to the president indicates that immigrants increase the economy's total output, and Americans share in part of that increase because of complements in production.

Utah legislators need to take this data into consideration when they pass anti-immigrant legislation. The facts speak for themselves.

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* JOE REYNA, a Utah banker and businessman, is the former chairman of the board of the Utah Hispanic Chamber of Commerce.

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