Do you think immigration is beneficial for the world it benefits the economy as well?
While we could argue over the fact that immigration reduces the available jobs for the natives, research suggests that it boosts the economy’s growth. Because in reality, immigrants take up jobs that natives don’t want or lack the required skill sets needed for it. So there is little evidence that immigration affects the overall employment level of the native workforce. Countries like Ireland, Spain and New Zealand, recognize the importance of having immigrants in their economy, and so have policies in place to ease the process for them.
Immigrants may be scientists, doctors, engineers, innovator or job creators. They may be skilled or unskilled, but they certainly are in the driver’s seat, because to a very large extent, they do contribute to improving the economic condition of the country. In many cases, immigration proves to be a compliment to the natives. That’s an economist’s way of saying that immigrants create more jobs than that existed before they got there. Research also suggests that the higher the immigration rate, the higher is the per capita income of the workers.
Most often, when we speak of immigration, we speak of money. This is because it contributes to the economy, both, directly and indirectly. How? We’ll get to that in a moment. But before that, let’s talk about why people migrate anyways. If you think about it, there could be a lot of reasons why people migrate. Like:
1. Lack of opportunity in their homeland
2. Higher income
3. The dearth of skill in the migrating country, etc.
The list really is exhaustive. But it is safe to say that immigration does not only benefit the economy of the migrating country but also to that of the migrant’s home country.
Although the economy has to be extremely cautious and sensitive about some dangers associated with immigration, like terrorism, undocumented migrants, etc., having so many advantages associated with it, it does suffice to say that immigration has changed the world considerably and effectively.
Why Immigration is Important?
1. Human Resource
For a country that’s lacking a particular type of skilled workforce, the quickest, easiest and most cost-effective way to bridge that gap is by getting skilled laborers to migrate to their country.
2. Better opportunities
Most often, we find there ’s excess skilled workforce in an economy, and the ratio of the number of jobs available to the skilled workforce is totally out of proportion. The country simply cannot generate enough jobs in the market place, leaving the migrants seeking better opportunities elsewhere.
3. Better standard of living
With the migrants bagging a more satisfying job, and better living and working conditions outside of their own country, it automatically raises their standard of living. Also, leaving them with a higher purchasing power, since the per capita income increase.
4. Increase in GDP
It is a massive boost to the economy to have a large chunk of its population to be immigrants. Higher per capita income of the immigrants and an increase in the profits of the firms in the immigrating country, directly contribute to the increase in the GDP of the economy. This holds good for the home country as well, as they also benefit from the inflow of income of the immigrants by way of taxes and other means.
5. Better infrastructure
With the population of an economy increasing, more relevance is placed on the betterment of the infrastructure, like roads, transportation, education, health care, etc. The higher the number of residents, the higher is the money and investment required. When the infrastructure of an economy is in place, it indicates that the economy is doing great.
Research indicates that the founders of startups, to a large extent, are immigrants. Companies like Google, PayPal, eBay, and many others were founded by immigrants. It may be due to the availability of resources to aid startups in the migrating country, which otherwise would not be in the reach of entrepreneurs looking to create new businesses, had they not considered immigrating.
Innovation makes the economy grow. Many immigrants who are highly skilled, vastly contribute to making scientific breakthroughs and other improvements. Scientists and engineers of other countries, residing in the US, create many of these innovations. These new innovations by the immigrants create new jobs, products, and markets.
8. Higher consumer spending
For any economy to thrive, it’s absolutely vital for money to circulate in the economy. The immigrant population inevitably spends on food, rent, clothing, energy and other essentials, which contribute to the money circulation within the economy.
9. Cultural diversity
With immigrants coming into a country from different parts of the globe, they not only bring with them their skills but also carry with them the culture that they’ve been a part of. That makes the immigrating country rich and diverse in different cultures, breaking barriers of languages and other such factors, making it one big, beautiful community that has risen above caste, creed, and race.
In a nation where the demography is getting older, it becomes crucial for that economy to restore its younger demography. In such instances, immigrants play a vital role in bridging the gap and avoid shrinking of the workforce. So it’s extremely important to make it easier for immigrants to come, by having an open-door immigration policy.
While immigration may certainly create some discomfort for a few, it has proven to have done more good than harm, on a deeper level. Immigration has contributed vastly to the growth of an economy in several ways for so many years now. That said, if all the immigrants were made to go back to their country, there would be a total collapse of the economy. Although the population is not good for the planet, it certainly is good for the economy. That’s why some of the fastest-growing economies open up its doors to immigrants because they understand the connection between a successful economy and the immigrant population. Immigrants leave their homeland in search of a better life for themselves, but without realizing it, create better lives for even the people around.
One of the great things about migrating to the U.S. is that they offer EB5 deals to individuals who have the capacity to invest in projects in return for a green card.