Fact or fiction: Immigration and the economy

What you may have heard

In recent years, immigration has become the biggest topic of debate for Americans. You may have heard claims that immigrants hurt the economy, that they are a burden on your tax dollars, or that they are taking jobs. Despite what you may hear in the news or during political campaigns, the data does not support these claims. In fact, economic analysis shows that it would be very damaging to the economy if America closed its borders. So, why does this narrative run wild if the truth is the opposite? In this article, we break down the facts so you can have informed conversations..

Fact or fiction?

The claim that immigrants are bad for the economy is false.

Let’s break it down by the most common rumors you may hear:

Rumor: Immigrants take more from the U.S. government than they contribute.

Fact check: Immigrants contribute more in tax revenue than they receive in government benefits. This creates a net profit for the U.S. government over time. 

Rumor: Immigrants take American jobs.

Fact check: Immigrants make up only a small portion of the labor force. They boost job growth and do not take jobs away from native-born workers. 

  • Immigrants only make up about 17% of the workforce, according to the Bureau of Labor Statistics.
  • There is no fixed number of jobs that everyone competes for. Economists call this the “lump of labor” fallacy. If this were true, then every graduating class of students would be a threat to the economy. Immigrant communities spend money on housing, food, transportation, and other consumer goods. This increased consumer demand leads to job creation. Immigrants also offset jobs that native-born workers do not typically take.
  • Countries with more immigrants tend to experience faster GDP growth.

Rumor: The U.S. economy does not need immigrants.

Fact check: Immigrants offset the declining birth rate and contribute valuable innovations that boost productivity.  

  • America is in a period of declining birth rate and has an aging population. This means that the ratio of people in the labor force is shrinking. Immigrant communities change the ratio for the better as more working-age people enter the workforce and contribute to safety nets like Social Security. 
  • Studies have shown that immigrants in America have contributed many innovations in science, technology, engineering, and mathematics that have boosted the productivity of workers.

Where did this narrative come from?

For generations, immigrants of all ethnic groups have been the scapegoats to blame for hard economic times. Anti-immigrant ideas date back to the 1700s, when laws were created to target European immigrants, claiming they would ruin the economy. Despite the facts and well-documented historical patterns of discrimination, immigrants are still dehumanized, blamed for the ills of society, and used as leverage to gain political power. You will likely hear these common fearmongering myths over and over again. Remember, this is a tall tale as old as time.

What is the impact of this narrative?

This false narrative of economic decline is widespread and comes directly from those with the political power to shape immigration policy. Even though the facts show that immigrants are good for the economy, and the logical step to improve the economy would be to welcome immigrants with open arms, the issue is much larger than dollars and cents. 

Not only is this narrative false, but shaping immigration policy based on how immigrants contribute to the economy strips them of their dignity and inherent humanity. When people are valued by their profitability, we go down a dangerous road of categorizing groups of people as less than human, who deserve less care, less human rights, less compassion. As a democracy, America is rooted in the idea of pluralism: that we can coexist and govern as a diverse group of people with different cultures, religions, and ethnicities. The American dream is built on the right to life, liberty, and the pursuit of happiness. Harmful anti-immigrant myths like this attack the very core of American values. 

How can you tell if a news source is trustworthy?

If you were fooled by this myth, you’re not alone. Misinformation is everywhere, and it can be difficult to spot. There are so many news outlets competing for attention online, and some outlets are even posing as true news sources and can look legitimate at first glance. Here are a few helpful tips to tell if a news source is legit, from The News Literacy Project.

Red flags to look out for: 

  1. False or untrue content: Publishing a demonstrably false claim without correcting it
  2. Clickbait tactics: “Baiting” you with sensationalized language, including misleading or exaggerated headlines, or headlines that are purposely vague to drive clicks 
  3. Lack of balance: Consistently focusing on one angle or side of a legitimate debate or controversy, while ignoring or distorting other perspectives
  4. Manipulated images or videos: Tip – You can do a reverse image search using Google to see if visuals have been misrepresented or altered in some way
  5. State-run or state-sponsored propaganda: Using government-controlled news organizations to further national agendas and improve public image
  6. Dangerous, offensive, and malicious content: Could include discriminatory language, unverified pseudoscience, content that promotes violence 
Want to explore other myths you may have heard?