Opinions on immigration differ completely between the two US Presidents. One opposed it strongly while the other rolled out a red carpet. We searched and analysed where immigration stands for the US economy. Here is a look.
One of the biggest agendas of Donald Trump on his way to the presidency was to curb immigration, both illegal and legal. His standing on immigration remains the same even now, as the US warms up for the 2024 elections. Recently, he announced to target and bring down many rules that favour immigrants, such as automatic citizenship for children born in the United States to illegal immigrants.
Policies during the Trump administration were strongly against immigration and it looks more politically influenced than decisions that were based on facts and figures.
Winds in the US Now Favouring Immigration
Moving our focus on the current US President, Joe Biden, under his presidency the country’s immigration system has been one of the most favourable for immigrants. Many new welcoming changes have been seen in H1B visa processing, the green card backlog has been reduced, EB-5 visa processing is expedited, plus a lot more.
The US Citizenship and Immigration Services (USCIS) is seen working more efficiently under the present US government as a lot of backlog has been cleared.
The way these two US Presidents view and work with immigrants is contrastingly different. This brings us to the question, is immigration good for the US? Does the US economy benefit from immigration and to what extent?
Economic Growth and Expanding Labour Force
Immigration contributes to an increase in a larger and younger population and stops the decline in labour force participation because of ageing. The US economy does benefit with more people working day and night for everyone’s growth.
The Congressional Budget Office said the rise in immigration will add 0.2 percentage points every year to the real Gross Domestic Product (GDP) from 2024 to 2034. This means that by 2034, a real GDP of about 2% will be added through immigration.
Increased Demand in Housing Market
More people coming in means there will be demand for more houses. The CBO has predicted increased investment in the housing market due to increased population through immigration. The projected increase in real estate investment is said to reach almost 11% in 2025 and 2026, mostly due to housing demand and a decline in mortgage rates.
This is just one industry that experiences positive growth due to immigration and this is not a standalone happening. Growth in one industry has a wave effect and other industries experience the same growth. International students alone contribute more than USD 40 billion to the US economy. This gigantic contribution just cannot be overlooked. People who are at the helm of affairs must acknowledge this fact.
Numbers and Economy Favour Immigration
The numbers say that immigration is good for all the parties involved. Changes take place but the overall objective remains the same, i.e. to welcome immigrants.
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