Does Illegal Immigration Really Hurt the Economy?

One of the most common arguments against illegal immigration by its most vocal opponents is the idea that undocumented workers create a major strain on the U.S. economy. However, many people may not be aware of where this theory comes from and whether or not it really has credence.

It is common for immigrants--both legal and illegal--to work low wage jobs for payment that many American workers aren't willing to take. This is based on lower expectations in standards of living. It is also a common problem for illegal immigrants to be paid wages which are less than the legal minimum by employers who take advantage of the fact that their illegal status means they risk being deported if they complain to authorities.

The argument that these lower-waged workers hurt the economy is based on the idea that employers will hire fewer workers at good wages, thus negatively effecting the wage standard across industries. This sits beside the other major argument for illegal immigration's negative effect on the economy: that illegal immigrants do not pay taxes and that therefore, any tax-supported services which they use constitute a drain on other taxpayers and on government spending.

But are these theories truly well founded?

According to business correspondent Adam Davidson, (as quoted in a 2006 NPR news article) most economists feel that illegal immigrant workers have little effect on the wages of American workers overall. Davidson also argues that the overall effect of immigrant labor on the economy is both positive and negative in different areas. He points out that while illegal immigrants do not pay taxes, the savings from low-cost labor end up benefiting the American consumer and making it easier for small businesses to operate.

But if this is true, why all the minute men? Why the volunteer border patrol and anti-Mexican white supremacist groups? Why, in short, does the anger continue if the negative effects of illegals on our economy are more imagined than real?

To understand, one must only look to the past. US history already contains many examples of labor debates very similar to the modern issue of Mexican immigrant workers. Then-respected racist theories and the ongoing "race trials" happening in the country during the 1800s often meant that a disproportionate amount of anger was directed at non-white immigrant workers. Much of this anger was directed at the many Chinese hands hired by railroad building companies.

At the time, immigrant labor was also thought to be a drain on the US economy. However, this perception was largely based in the idea that citizens who were not white and natural born did not constitute a "true" part of the American economy (sound familiar?). This is demonstrated in the then-common belief that immigrant workers (including European immigrants) were "taking jobs away" from established American citizens.

Is it so strange to think that a similar type of perception may be at play in the modern immigrant/economy debate?