It also means that due to cheaper labor costs firms costs of production reduce and they are able to become more competitive. As they are highly competitive they could set down their prices as well and thus consumers benefit from this. It is because they get goods at lower prices and thus, their purchasing power increases. When this happens they buy more and thus, companies are further motivated to produce more at lower cots. Besides, the United States of America has always been straddled by a rise of high-school dropouts.
It has been a great cause of concern for the Government as well as for numerous social organisations so as to where to get their supply of labor from in the face of the high number of dropouts. This problem is solved by the supply of illegal immigrants who constitute the labour force as they are not many natives willing to take up the jobs they do. Moreover, as immigrants come from hostile situations or for economic betterment they are willing to take up any kind of job even if there is a social stigma attached to it.
This is not true of the natives who might be plain unwilling to take up some kinds of job due to the nature of work or prestige issues. Even if the illegal immigrants do cause wages for the native workers to fall, it is a very small and negligible impact that is not of much importance, statistical and otherwise. The goods being produced in the economy now due to illegal immigrants were not produced before. Some of them used top be imported from abroad. Therefore, immigrants actually help in saving costs for the economy as a whole by bringing down the amount of imports.
Also, they help their companies to compete with the same type of businesses in their hometowns. As the labour in their hometowns is cheap, the companies there are able to produce goods at lower costs that fare well in the international market. Now, due to illegal immigrant workers the economy of United States of America could also compete with them due to lower wage costs that they are enjoying, However, on the other side of the picture lie the disadvantages of employing illegal immigrant workers and the way they damage the economy of United States of America.
Firstly, they make the natives lose jobs and a number of native high-school graduates are unemployed because foreign illegal immigrant labor is able to supply their labor at very low costs. Now there might be a number of people who are native that are not skilled and would want such jobs but might not be willing to work at very low wages . This kind of population loses out. It causes the others to lose motivation as they see jobs being taken up by foreign workers. Another problem that is there is of wage loss.
The natives who are willing to work at low wages suffer from a wage loss that figures around 40-50%. The Government also has to suffer an additional cost that goes in billions of supporting and providing welfare to the illegal immigrants. These include the costs of social welfare that consists of medical covers and free education. In addition, hard-earned taxpayers’ money that figures in billions have gone into provision of medical welfare of these immigrants. Thus, considering the costs of their upkeep and other disadvantages they have, or economy like wage loss, are a net drain for the U.
S economy and resources rather giving net benefit to the economy. Companies and corporations enjoy the benefits of cheap labor while taxpayer pays the price in terms of infrastructural cost. Conclusion In my opinion, the advantages of illegal immigrant workers are far more than the disadvantages. While they might be responsible for a degree of wage loss and job loss, they still provide some critically needed labor supply to the market. They also help in the increasing competition, reducing prices and bringing the American economy on a global footing.
Thus, it could be safely concluded that they contribute to the resources rather than draining them.
James Dwyer. Illegal Immigrants, Health Care, and Social Responsibility: The Hastings Center Report, Vol. 34, 2004 Rose Hum Lee: The Chinese in the United States of America. : Hong Kong University Press, 1960 Carolyn J. Seugling: Toward a Comprehensive Response to the Trans national Migration of Unaccompanied Minors in the United States: Vanderbilt Journal of Trans national Law, Vol. 37, 2004