Two New Studies Agree: Immigration Reform Will Improve the Economy.

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The Center For American Progress(CAP) and the CATO institute(a libertarian group), have conducted studies on Comprehensive Immigration Reform’s(CIR) potential impact on the economy and have come to similar conclusions:

According to CAP’s report, CIR would add an estimated $ 1.5 trillion to the U.S. GDP over 10 years.

The same report found that mass deportation will cost the U.S. economy $ 2.6 trillion in lost GDP over 10 years.

That’s a $4.1 trillion difference, if one frames it in that way.

One doesn’t need a detailed study to intuitively figure out the potential economic benefits of legalizing the 12+ million current undocumented. Here is my intuitive list of what legalization can do to improve the economy:

1) Car industry:

I know at least 3 undocumented individuals that do not drive because of their undocumented status. Once legalized, more cars will be bought hence the car industry would benefit.

2)Small businesses:

There will be more of them. Many undocumented who work consistently(i.e. a steady job)  have saved up money, or sent it back home. Once legalized, these individuals will  invest that money in their own businesses(or other businesses). Furthermore, they will be able to obtain loans, which brings us to,

3)Banks:

They will have more customers, hence more money made on interest.

4)Government:

All of a sudden, millions upon millions of taxable individuals will be contributing to the always-in-need-of-filling government coffers.

5)Immigration attorneys:

This is self-serving, but you can imagine the effect a million new clients can have.

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2 Responses to “Two New Studies Agree: Immigration Reform Will Improve the Economy.”

  1. Cockroach People Says:

    Good points, but careful with point #1, we need the environmentalists 😉

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