3 Reasons Why Immigrants Are Key To Economic Growth
Immigrants are essential to economic growth in America. That is the conclusion of a recent report on The Economic and Fiscal Consequences of Immigration released by the National Academy of Sciences (NAS).
What are the three reasons why immigrants are important to economic growth? Labor force growth, entrepreneurship and human capital.
Labor Force Growth: If those who oppose immigration were correct, then Japan, an immigrant-unfriendly country, should be an economic juggernaut. It is not. Japan is facing an economic and demographic crisis. “Japan has the world’s oldest population, as well as a low birth rate and little immigration, but its growth problems go far deeper,” noted a recent analysis by Bloomberg. “In the early 1990s, the country’s postwar growth boom collapsed – decades of deflation followed and Japan started to suffer a shortage of workers.”
In contrast, the National Academy of Sciences concluded, “Immigration supplies workers, which increases GDP [gross domestic product] and has helped the United States avoid the fate of stagnant economies created by purely demographic forces – in particular, an aging (and, in the case of Japan, a shrinking) workforce.”