While comprehensive immigration reform (CIR) remains stalled somewhere between the House, Senate, and the Administration, four noted experts were interviewed by the Council on Foreign Relations (CFR) about how immigration reform would affect the U.S. economy. These interviews were posted on CFR’s website yesterday. David Scott Fitzgerald, Associate Director for the Center for Comparative Immigration Studies at the University of California, San Diego; Heidi Shierholz, an economist for the Economic Policy Institute; Mark Krikorian, Executive Director for the Center for Immigration Studies; and James Carafano, Director for Foreign Policy Studies at the Heritage Foundation offered opinions on immigration and the economy. While their opinions varied widely, there were notable areas of agreement: our system is in need of repair, and legalization would not be the great harm to our economy that restrictionists tout.
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This week, the U.S. Census Bureau began distribution of the questionnaires for the 2010 Census. The results of the Census will form the basis for the apportionment of congressional districts and the distribution of hundreds of billions of dollars in federal funds, as well as serving to guide community-planning decisions across the country. However, Census 2010 has not been without its share of controversy. In October of last year, for instance, Senator David Vitter (R-LA) proposed an amendment to the Commerce, Justice and State appropriations legislation which would cut off financing for the 2010 Census unless the survey includes questions about immigration status. Additionally, some pro-immigrant activists have suggested that immigrants sit out the Census this year to protest the federal government’s failure to enact comprehensive immigration reform. Yet this would be self-defeating given the high economic and political stakes of an accurate count, and that fact that immigrants are already among those demographic groups who are typically under-counted in the Census.
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With the passage of the $15 billion jobs bill in the Senate last week, job creation is certainly at the top of the Congressional priority list. As a way to further stimulate the economy, Chairman and Ranking Member of the Senate Foreign Relations Committee, Senators John Kerry (D-MA) and Richard Lugar (R-IN), introduced the Start-Up Visa Act of 2010 last week which incentivizes job creation through the promise of legal residence status—that is, “drives job creation and increases America’s global competiveness by helping immigrant entrepreneurs secure visas to the United States.”
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Immigrants have long been a driving economic force in America’s large thriving metropolitan areas—New York, Los Angeles, Chicago, Miami, Dallas—where immigrants’ economic output produces a large and growing share of the U.S. gross domestic product. But what about the once thriving industrial heartland of the United States known as the Rust Belt? In a roundtable discussion yesterday in Akron, Ohio, authors Richard Herman and Robert Smith discussed their new book which points out how “immigrants and the businesses they create” can “provide rundown neighborhoods with a powerful jolt of new investment and spinoff job opportunities” and how our broken immigration system is taking away at least one tool for economic recovery in the cities that need the most help.
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The number of unauthorized immigrants living in the U.S. dropped by roughly 1 million last year, according to a new report released by the Department of Homeland Security (DHS) yesterday. As of January 2009, the number of unauthorized immigrants currently residing in the U.S. totaled 10.8 million, down from 11.6 million in January 2008, marking the second consecutive year of decline. As numerous reports have noted, not since 2005 has the number of unauthorized immigrants been so low.
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Each year, millions of immigrants in the U.S. send billions of dollars in remittances to friends and family members in their home countries. It is easy to mistakenly assume that this represents a huge loss for the U.S. and in this economy, why are we allowing billions of dollars to be sent abroad? Like all things immigration-related, however, the relationship between remittances and the U.S. economy is much more complex than meets the eye. While it’s true that remittances are an important source of income for immigrant-sending countries, remittances are also a huge boost to U.S. exports and the U.S. economy.
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The Economic Policy Institute (EPI) yesterday released a new study, Immigration and Wages, which confirms what many other economists have found: “that immigration has a small but positive impact on the wages of native-born workers overall.” The report, by economist Heidi Shierholz, finds that the “effect of immigration from 1994 to 2007 was to raise the wages of U.S.-born workers, relative to foreign-born workers, by 0.4% (or $3.68 per week).” Even the small (and shrinking) number of “U.S.-born workers with less than a high school education saw a relative 0.3% increase in wages (or $1.58 per week)” as a result of immigration during this period.
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Yesterday, White House press secretary Robert Gibbs confirmed that President Obama is likely to address immigration reform—an issue President Obama promised to tackle within his first term—in the State of the Union Address today:

“Well, I think one of the things the President will — has talked about and one of the things you’ll hear him mention tomorrow and in the coming days, similar to what I’ve said on cap and trade, and that is that if — we’ve started a process on this and if Congress can put together the way forward, a coalition to get the way forward, then it’s something we’ll work through.”

While the President’s top priorities continue to be jobs, the economy and health care, it is equally important for the President to renew his commitment to comprehensive immigration reform—reform that, if passed, would benefit our ailing economy through job creation, wage increases and increased tax contributions.

The election of Republican Senate candidate Scott Brown in Massachusetts provides an interesting twist in 2010 electoral politics. While some may argue that this loss is essentially a referendum on the current Administration and its agenda, the less dramatic but more likely conclusion is that the results were more about the candidates themselves. Democratic candidate Martha Coakley’s well-documented gaffes in the media made for entertaining fodder during a news cycle dominated by depressing news from Haiti. Her loss, while bad news for the Democrats in Congress who prefer having a filibuster proof majority in the Senate, does not necessarily derail the President’s agenda. To make wholesale assumptions that Republican Senator-Elect Scott Brown is going to automatically derail all of the President’s upcoming initiatives is not only pre-mature but impossible to determine.
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A new report from researchers at the University of Southern California (USC) provides further evidence that immigration reform which includes the creation of a pathway to legal status for unauthorized immigrants already in the United States would yield tangible economic benefits. The report, The Economic Benefits of Immigrant Authorization in California, by Dr. Manuel Pastor and co-authors at USC’s Center for the Study of Immigrant Integration (CSII), estimates that “unauthorized Latino immigrants in California…missed out on approximately $2.2 billion in wages and salary income last year alone due solely to their legal status, and the state lost out on the multiplied impacts of that potential income and spending, suggesting a total potential gain of $3.25 billion annually from authorization.”
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