The long view of economics and immigration (Two Indicators)
Nov 20, 2024
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What happens when policy changes aim to deport millions? Dive into the economic fallout of past crackdowns on immigration. The historical impact of the Chinese Exclusion Act reveals how exclusion affects not only immigrants but local economies too. Unravel the complex narratives surrounding immigration, showcasing its potential benefits and contributions. Discover how immigrants drive innovation and growth, and understand the consequences of stagnant immigration policies in the U.S. Ultimately, a poignant look at the hidden economic engines immigrants represent.
The historical impact of the Chinese Exclusion Act illustrates how restrictive immigration policies can harm overall economic growth rather than help it.
Immigrants significantly contribute to the economy through talent, consumption, taxes, investment, and innovation, challenging negative stereotypes about their role in society.
Deep dives
Historical Impact of Immigration Policies
The discussion details the consequences of the Chinese Exclusion Act of 1882, which aimed to curb Chinese immigration in an effort to protect jobs for white workers during economic downturns. Research revealed that instead of benefiting local white laborers, this policy led to a significant reduction in the overall labor supply, with white workers leaving as well. The diminished presence of Chinese immigrants resulted in declining economic vitality in many towns, as Chinese workers contributed to various services and local businesses. Ultimately, the Act's restrictions negatively affected economic growth in Western states for many decades.
The Dual Narratives Surrounding Immigrants
Zeke Hernandez highlights the polarizing narratives about immigrants, where they are often seen as either villains stealing jobs or as helpless individuals in need of compassion. These contrasting views detract from the nuanced reality of immigrants' contributions to society and the economy. By focusing on fear or pity, these narratives ignore the positive roles immigrants play as contributors to economic growth and social development. Hernandez argues that a more balanced perspective acknowledges immigrants as essential assets to the economy rather than merely victims or adversaries.
Five Contributions of Immigrants to the Economy
Zeke Hernandez outlines five ways immigrants positively impact the economy: talent, consumption, taxes, investment, and innovation. Immigrants often take on roles in sectors where there is a labor shortage, enhancing productivity across various industries. Furthermore, their unique cultural preferences introduce new products and services to the market, boosting overall demand. Additionally, immigrants contribute substantially to tax revenues, and their entrepreneurial activities foster investment and job creation, underscoring the importance of reconsidering current immigration policies to maximize these benefits.
Mass deportations. What would actually happen—economically—if the President-elect follows through on promises to deport millions of people from America.
We don't have to guess.
Today we have two stories from Planet Money's daily podcast, The Indicator. First, the story from another time the US cracked down on immigration with the expressed intent of helping the economy. We look at how that worked out. And then we distill 20 years of research on immigrants and economic growth. What does immigration do for an economy? What types of immigration help? And who benefits?
Our most recent newsletter goes into more depth on some of this. Part one of two here. Subscribe to our newsletter here.
This episode is hosted by Adrian Ma, Darian Woods, and Wailin Wong. These episodes of The Indicator were originally produced by Cooper Katz McKim and Julia Ritchey, and engineered by Kwesi Lee and Maggie Luthar. They were fact-checked by Angel Carreras and Sierra Juarez. Kate Concannon is The Indicator's Editor.