Sample Economics Coursework Paper on Cost and Benefits of Immigration to the United States

Cost and Benefits of Immigration to the United States

Immigration occurs when people move to a foreign country. For instance, people have been moving to America believing that it is the land of opportunity and great people. Immigrants have given America the chance to enjoy different cultural diversities associated with immigration. They boost different ideologies, cultures, religion, and considerable economic growth (Greenstone & Looney, 2010). I believe that the US should encourage immigration of people worldwide as they come with numerous benefits. It is a real influence and a booster to the economic growth through revenue collection and taxation. Nonetheless, there are various costs and benefits associated with immigration in the United States.

For instance, illegal migration approximately costs the Government and the taxpayers 113 billion dollars. These are estimates from some of the states: California 25.3 billion dollars yearly, North Carolina is 2 billion while Texas is 12.1 billion annually. The US receives more than 40 million Immigrants annually who have contributed to economic growth. Immigrants to the country provide labor in industries and electrification in the whole country, especially from young and educated people. According to polls recently done, about 150 million confirmed that they would go to the US given an opportunity (Spickard, 2007).

The first benefit associated with immigration is sustainable economic growth. Service provision to the older population mostly occurs when the numbers of people working are few. The pension scheme is by the delivery of funds to the new and young people as they pay tax to the Government. The second benefit is that it brings new ideas and more energy to the industries. The authorities can implement ideas that can be applied to boost the profits of the industry, thus enhancing economic growth.

The third benefit is that it increases the GDP of the country due to increased taxes paid to the government. This is boosted by the increased spending and more supply of labor to the industries. Tourism is growing because of the different cultural diversities (Greenstone & Looney, 2010). The host country gain more tourists who want to explore the said cultures and improve the infrastructure through the creation of new air routes.

Immigrants create new business ideas and invent products and services. As a result, they create employment opportunities. Immigrants in the US started 40% out of 500 companies creating jobs for 10 million people and making a profit of 4.2 trillion within a decade. The contribution and earning to GDP was 14 billion dollars, 2.7 billion to taxes. Immigrants contribute largely to the state through taxes; they pay approximately 11.6 billion dollars annually. Contribution differs from countries, for example, California taxes are slightly above 3 billion whereas in Montana is about 2.2 billion dollars. The immigrants pay approximately 8% of all the taxes (Elliott, Segal & Mayadas, 2009).

Labor economists confirmed that immigrants provide more energy than the natives do. Recent research done in 2012 confirmed that deportation of immigrants would affect economic growth by losing about 250 billion dollars yearly. These costs are inconvertible even if it is distributed evenly over the year. Immigrants totally benefit the economic development of the country (Spickard, 2007).

Undocumented immigrants contribute more to the US economy through high investments and high usage of US goods and services. By occupying more job positions, improving productivity and reducing the prices of goods and services thus great contribution to social security and insurance programs (Greenstone & Looney, 2010).

Increase amount of consumption of goods and services that cost approximately 800 billion dollars. The immigrants produce products at a lower price because they earn 20%less than the natives are. That ensures low costs for the consumer and significant returns to the employers, as they are the primary users. About 90%of salaries paid to immigrants spent in the US and the remaining 10% sent to their home countries. The total amount of money consumed by immigrants in the US is 400 billion dollars (Greenstone & Looney, 2010).

Immigrants have improved the economic growth and wealth generation in the US. The American economy would be affected by their absence. The majority of the immigrants are working and young and they do not collect their social security or medical insurance until they are old. Although they are not entitled to any benefits, they still pay taxes assisting in health, transportation, education among other services (Lane, 2014).

The other benefit is that they improve business opportunities since most immigrants work on low-income jobs. More than 96% of them have benefited from the programs put in place by the US government. The sales tax paid by immigrants on their homes and property has been on the increase. The employer deducts tax from their wages and gives it to the government. On average, the government uses 7 billion dollars from the taxes that immigrants contribute to social security while 1.5 billion dollars caters for medical insurance (Greenstone & Looney, 2010). Approximately 80,000 dollars more is paid to the government and the immigrants are not entitled to services offered for that payment. About 13.9 % of all immigrants in the US stay in Texas. In this case, they have increased the taxes that Texas collects to 424.7 million dollars in revenues including tax used in health care and education (Elliott, Segal & Mayadas, 2009).

Therefore, based on the benefits provided here and after taking all the relevant issues into consideration, I would say that immigration has brought more benefits to the US than it hurts it. In fact, the great economy of this country would not have been this way was it not for the immigrants. This can be justified via the benefits discussed above because they are insurmountable. Therefore, the government should weigh the numerous benefits associated with immigration before deciding to ban immigration. As explained above, immigration has helped the US government given that it immigrants help the economy to grow. 


Elliott, D., Segal, U. A., & Mayadas, N. S. (2009). Immigration Worldwide: Themes and Issues. Immigration Worldwide, 451-464.             doi:10.1093/acprof:oso/9780195388138.003.0030

Greenstone, M., & Looney, A. (2010). Ten economic facts about immigration. Hamilton Project, The Brookings Institution.

Lane, M. (2014). Legal and illegal immigration. Detroit: Gale Cengage Learning.

Spickard, P. R. (2007). Almost all aliens: immigration, race, and colonialism in American history and identity. New York: Routledge.