fiscal policy institute

10 ways immigrants help to grow the American economy

After receiving a comment that was obviously very misinformed on immigration in the United States, I felt the need to share this: 

America is a nation of immigrants. Our American journey and our success would simply not be possible without the generations of immigrants who have come to our shores from every corner of the globe. It is helpful to take a moment to reflect on the important contributions by the generations of immigrants who have helped us build our economy, and made America the economic engine of the world. How do immigrants strengthen the U.S. economy? Below is our top 10 list for ways immigrants help to grow the American economy

  1. Immigrants start businesses. According to the Small Business Administration, immigrants are 30 percent more likely to start a business in the United States than non-immigrants, and 18 percent of all small business owners in the United States are immigrants. Immigrant-owned businesses create jobs for American workers. According to the Fiscal Policy Institute, small businesses owned by immigrants employed an estimated 4.7 million people in 2007, and according to the latest estimates, these small businesses generated more than $776 billion annually. 
  2. Immigrants are also more likely to create their own jobs. According the U.S. Department of Labor, 7.5 percent of the foreign born are self-employed compared to 6.6 percent among the native-born. 
  3. Immigrants develop cutting-edge technologies and companies. According to the National Venture Capital Association, immigrants have started 25 percent of public U.S. companies that were backed by venture capital investors. This list includes Google, eBay, Yahoo!, Sun Microsystems, and Intel. 
  4. Immigrants are our engineers, scientists, and innovators. According to the Census Bureau, despite making up only 16 percent of the resident population holding a bachelor’s degree or higher, immigrants represent 33 percent of engineers, 27 percent of mathematicians, statisticians, and computer scientist, and 24 percent of physical scientists. Additionally, according to the Partnership for a New American Economy, in 2011, foreign-born inventors were credited with contributing to more than 75 percent of patents issued to the top 10 patent-producing universities. 
  5. Immigration boosts earnings for American workers. Increased immigration to the United States has increased the earnings of Americans with more than a high school degree. Between 1990 and 2004, increased immigration was correlated with increasing earnings of Americans by 0.7 percent and is expected to contribute to an increase of 1.8 percent over the long-term, according to a study by the University of California at Davis. 
  6. Immigrants boost demand for local consumer goods. The Immigration Policy Center estimates that the purchasing power of Latinos and Asians, many of whom are immigrants, alone will reach $1.5 trillion and $775 billion, respectively, by 2015. 
  7. Immigration reform legislation like the DREAM Act reduces the deficit. According to the nonpartisan Congressional Budget Office, under the 2010 House-passed version of the DREAM Act, the federal deficit would be reduced by $2.2 billion over ten years because of increased tax revenues. 
  8. Comprehensive immigration reform would create jobs. Comprehensive immigration reform could support and create up to 900,000 new jobs within three years of reform from the increase in consumer spending, according to the Center for American Progress. 
  9. Comprehensive immigration reform would increase America’s GDP. The nonpartisan Congressional Budget Office found that even under low investment assumptions, comprehensive immigration reform would increase GDP by between 0.8 percent and 1.3 percent from 2012 to 2016. 
  10. As a nation of immigrants, we must remember that generations of immigrants have helped lay the railroads and build our cities, pioneer new industries and fuel our Information Age, from Google to the iPhone. 

As President Obama said at a naturalization ceremony held at the White House… 

The lesson of these 236 years is clear – immigration makes America stronger. Immigration makes us more prosperous. And immigration positions America to lead in the 21st century. And these young men and women are testaments to that. No other nation in the world welcomes so many new arrivals. No other nation constantly renews itself, refreshes itself with the hopes, and the drive, and the optimism, and the dynamism of each new generation of immigrants. You are all one of the reasons that America is exceptional. You’re one of the reasons why, even after two centuries, America is always young, always looking to the future, always confident that our greatest days are still to come.

We celebrate the contributions of all Americans to building our nation and its economy, including the generations of immigrants.”

Take action!

bekahjobanana  asked:

Here's an economics question for you. I've been trying to convince my brother that raising the minimum wage is totally necessary, but he always tells me how the price of everything will go up if businesses have to pay workers so much more. Is this true? If not, how could I articulate to him that it's not the case?

First, the impact on the economy that this will have:

If the minimum wage were to go up, it has been found to create more jobs, and create more spending in the economy.

When low-wage workers get a raise they usually spend it rather than stock it away in a mutual fund. In many cases, they will spend the money in the same places that hire a lot of low-wage workers: They spend it in fast food restaurants and low-end retail chain stores which account for many of America’s minimum wage jobs. So these stores get more business, which offsets much of what they lose by paying higher wages.

A 2006 study from the Fiscal Policy Institute found that states with minimum wages above the federal level had faster small business and retail job growth.

Now onto your question pertaining to higher prices -

A ten percent increase in the wage is associated with only a 0.4-0.7 percent increase in prices.

If prices increased to the maximum, that means there is a 9.3% difference, which means there is a 9.3% more money than you would have.

Which means we go from a $7.25 minimum wage to $7.97 minimum wage,a measly 70cent increase.

Let’s say prices increase to that maximum of 0.7% -

Currently: A hamburger costs 5$ (including tax) and you only have 50$ on you. You pay for the hamburger, you now have a hamburger and $45;

Minimum wage increased: That same hamburger will now cost $5.35, and you will have 55$ on you (due to the increase). You pay for that hamburger, you now have a hamburger and $49.65, a near five dollar increase.

I mean a minimum wage increase of only 70 cents sounds pretty great, doesn’t it? Now imagine it at 10.10, and I hope you understand how great that is.

You should also read these posts about this:

The Economic Policy Institute released a report estimating that raising the federal minimum wage to $10.10 an hour, up from $7.25 today, would add an additional 85,000 jobs to the economy on top of all the jobs we have now.

Raising the minimum wage creates jobs.

This wage increase will do so much more good than it ever could do harm.

I originally posted the above here: http://tumblr.macleodsawyer.com/post/128450187107/hey-so-im-just-asking-but-how-does-raising-the

anonymous asked:

I haven't taken an economics class yet or anything so please help me understand: if you raise the minimum wage, isn't that going to raise the prices of everything else? Like a gallon of milk for example. So in the end it won't help? I'm honestly asking--I want to be informed so that I don't sound like a complete idiot

You would think, but basic economic theory does not apply.

First, the impact on the economy that this will have -

If the minimum wage were to go up, it has been found to create more jobs, and create more spending in the economy.

When low-wage workers get a raise they usually spent it rather than stock it away in a mutual fund. In many cases, they will spend the money in the same places that hire a lot of low-wage workers: They spend it in fast food restaurants and low-end retail chain stores which account for many of America’s minimum wage jobs. So these stores get more business, which offsets much of what they lose by paying higher wages.

A 2006 study from the Fiscal Policy Institute found that states with minimum wages above the federal level had faster small business and retail job growth.

Now onto your question pertaining to higher prices -

A ten percent increase in the wage is associated with only a 0.4-0.7 percent increase in prices.

If prices increased to the maximum, that means there is a 9.3% difference, which means there is a 9.3% more money than you would have.

Which means we go from a $7.25 minimum wage to $7.97 minimum wage, a measly 70cent increase.

Let’s say prices increase to that maximum of 0.7% -

Currently: A hamburger costs 5$ (including tax) and you only have 50$ on you. You pay for the hamburger, you now have a hamburger and $45;

Minimum wage increased: That same hamburger will now cost $5.35, and you will have 55$ on you (due to the increase). You pay for that hamburger, you now have a hamburger and $49.65, a near five dollar increase.

I mean a minimum wage increase of only 70 cents sounds pretty great, doesn’t it? Now imagine it at 10.10, and I hope you understand how great that is.

You should also read these posts about this:

The Economic Policy Institute released a report estimating that raising the federal minimum wage to $10.10 an hour, up from $7.25 today, would add an additional 85,000 jobs to the economy on top of all the jobs we have now.

Raising the minimum wage creates jobs.

This wage increase will do so much more good than it ever could do harm.

anonymous asked:

Minimum wage here again. Basically, my dad owns a small business, and a significant increase in minimum wage could potentially put him out of business. He takes care of his employees and provides them with health care and dental plans, but if the wages went up, in order to stay alloy some of the benefits would probably get cut. I am totally on board with huge corporations having to pay a higher minimum wage, but for a lot of underdog locals it's more complicated then it seems.

Okay this is the mindset I hate. 

Freshman year economic theory doesn’t apply.

If the minimum wage were to go up, it has been found to create more jobs, and create more spending in the economy.


Due to the increase of spending, your dad is able to keep his business, and make more revenue.

When low-wage workers get a raise they usually spent it rather than sock it away in a mutual fund. In many cases, they will spend the money in the same places that hire a lot of low-wage workers: They spend it in fast food restaurants and low-end retail chain stores which account for many of America’s minimum wage jobs. So these stores get more business, which offsets much of what they lose by paying higher wages.

A 2006 study from the Fiscal Policy Institute found that states with minimum wages above the federal level had faster small business and retail job growth.  

Raising the federal minimum wage from its current low level would have little if any effect on jobs and employment, while dramatically helping those who labor in these jobs. 

I could go more in depth with this like I typically do, but I am incredibly tired.

dugtrious  asked:

Hey, so I'm just asking, but, how does raising the minimum wage help? If the minimum wage is raised, companies will still want the same amount of profit regardless. To gain the same (or more) profit, they have to get more money. To get more money, they have to raise prices. Wouldn't the higher prices make it just as difficult to afford things as it is currently?

You would think, but freshman year economic theory does not apply.

First, the impact on the economy that this will have -

If the minimum wage were to go up, it has been found to create more jobs, and create more spending in the economy.

When low-wage workers get a raise they usually spent it rather than stock it away in a mutual fund. In many cases, they will spend the money in the same places that hire a lot of low-wage workers: They spend it in fast food restaurants and low-end retail chain stores which account for many of America’s minimum wage jobs. So these stores get more business, which offsets much of what they lose by paying higher wages.

A 2006 study from the Fiscal Policy Institute found that states with minimum wages above the federal level had faster small business and retail job growth.

Now onto your question pertaining to higher prices -

A ten percent increase in the wage is associated with only a 0.4-0.7 percent increase in prices. 

If prices increased to the maximum, that means there is a 9.3% difference, which means there is a 9.3% more money than you would have. 

Which means we go from a $7.25 minimum wage to $7.97 minimum wage, a measly 70cent increase.

Let’s say prices increase to that maximum of 0.7% -

Currently: A hamburger costs 5$ (including tax) and you only have 50$ on you. You pay for the hamburger, you now have a hamburger and $45;

Minimum wage increased: That same hamburger will now cost $5.35, and you will have 55$ on you (due to the increase). You pay for that hamburger, you now have a hamburger and $49.65, a near five dollar increase. 

I mean a minimum wage increase of only 70 cents sounds pretty great, doesn’t it? Now imagine it at 10.10, and I hope you understand how great that is.

You should also read these posts about this:

The Economic Policy Institute released a report estimating that raising the federal minimum wage to $10.10 an hour, up from $7.25 today, would add an additional 85,000 jobs to the economy on top of all the jobs we have now.

Raising the minimum wage creates jobs.

This wage increase will do so much more good than it ever could do harm.

anonymous asked:

I saw your reply to the ask about Sanders and taxes raising. What about small business owners? My boss owns a small business and most of her "income" goes towards her business & paying her employees. I love Bernie Sanders but I see her concern.

Freshman year economic theory doesn’t apply.

If the minimum wage were to go up, it has been found to create more jobs, and create more spending in the economy.

Due to the increase of spending, your boss is able to keep his business, and make even more revenue.

When low-wage workers get a raise they usually spent it rather than sock it away in a mutual fund. In many cases, they will spend the money in the same places that hire a lot of low-wage workers: They spend it in fast food restaurants and low-end retail chain stores which account for many of America’s minimum wage jobs. So these stores get more business, which offsets much of what they lose by paying higher wages.

A 2006 study from the Fiscal Policy Institute found that states with minimum wages above the federal level had faster small business and retail job growth.  

Raising the federal minimum wage from its current low level would have little if any effect on jobs and employment, while dramatically helping those who labor in these jobs.

I am a business owner (actually I own three of them), so I can see her point, but with some further research it doesn’t stand and a minimum wage increase will actually help her!