The Federal Reserve Bank of Dallas recently examined the economic and policy implications of immigration. The study specifically finds that immigrants accounted for at least one-quarter of the nation s labor force growth over the past 20 years. The study also notes that the more different immigrants are, regardless of whether they have lower or higher skills than natives, the bigger the economic gains to our nation. According to the Dallas Fed, immigrants are helping to keep the Social Security and Medicare systems solvent. The study also documents that American consumers and urban areas benefit directly from immigration.
Consumers benefit because they buy or use goods and services produced by immigrants.
Urban areas benefit because immigrants have revived inner-city neighborhoods nationwide. The Dallas Fed noted that, Improving the immigration laws would alleviate labor shortages. The report also addresses the H-1B visa program that is much in the news as measures to increase the cap on those visas work their way through Congress. As a result of the increased need for workers with specific skills for projects, temporary visa programs will be needed for the foreseeable future, regardless of any changes in the employment-based immigration system. The second Federal Reserve study, published in the same issue of Southwest Economy , finds that immigration not only improves the lot of American workers, but also has sustained the current economic growth without causing inflation.