Immigration and the US Economy

Case Code: ECON029 Case Length: 25 Pages Period: 1900-2007 Pub Date: 2008 Teaching Note: Not Available |
Price: Rs.400 Organization : - Industry : - Countries : USA Themes: - |

Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Why Does the US Attract Immigrants?
Ever since the Americas were discovered by explorers, they attracted millions of immigrants. The US, in particular, became a magnet of sorts for prospective immigrants. Although there were several reasons for this, the main reason was better economic prospects. Immigrants usually came from countries where there were few opportunities. The US, sometimes referred to as the 'Land of Opportunities', was where these immigrants hoped to achieve a higher standard of living – something that they felt their own country would be unable to provide. The US was home to some of the best universities in the world and had been attracting students from all corners of the globe...
Effects of Immigration
Immigration has had a significant demographic, economic, and social impact on the US economy.
Demographic Effects
With a steady flow of immigrants, the demography of the US had been changing over the years. Immigration had contributed significantly to the increase in US population, though there were other factors like a declining infant mortality rate (from 100 per 1,000 births in 1900 to less than 10 per 1,000 births in 2000), and an increasing average life expectancy (from 47 years in 1900 to 77 years in 2000). According to the Census Report published in 2002, the country's population grew from 76 million in 1900 to 300 million in 2006...
Economic Effects
The US economy has been dependent on immigrants since the 16th century. In the early years of immigration, a large proportion of the English people who came to America were farmers and they continued to work on farms in their adopted country. The US also attracted people with technological skills. For example, Samuel Slater, an expert in making textile machinery, arrived in the US in 1789 and four years later established America's first cotton factory at Pawtucket, Rhode Island...
Social and Cultural Effects
Immigration also had a social and cultural impact on US society. Owing to the large number of immigrants, the US had become a multicultural society. There was diversity in food, language, art, and culture. However, the increasing number of immigrants into the US also led to xenophobia among some of its citizens as they feared that high levels of immigration could cause the US to lose its Anglo-Protestant culture. In the 1860s, groups that advocated white supremacy used violent methods to oppose Blacks, Jews, Catholics, etc...
The Great Debate
The issue of immigration had been a topic of debate since the late 18th century. Critics had been arguing that immigrants depressed wages, especially of low wage earners, disregarded the principles of freedom and democracy, refused to learn English, and weakened public service. The arguments remained the same over the years; however, with the substantial increase in immigration levels, the issue began attracting far more attention. Between the late 1990s and 2006, around 10 million legal immigrants and approximately 12 million undocumented immigrants joined the US population...
Looking Ahead
After the rejection of the CIR bill, the US government announced new measures to address the challenges of immigration (Refer Exhibit XIII for more information on reforms to improve border security and immigration within the existing laws). In mid-2007, several government and non-government organizations published reports giving population projections of the US and the contribution of immigration to the population growth. According to a Center of Immigration Studies (CIS) report published in August 30, 2007, if both legal and illegal immigration continued at the 2007 rate, then the US would experience a population boom...
Exhibits
Exhibit I: Immigration to the US from Different European Countries
Exhibit II: Immigration Acts in the US
Exhibit III: Region/Country of Origin of Immigrants in 1890 and 2000
Exhibit IV: Legal Permanent Resident Flow to the US between 1900 and 2006
Exhibit V: World's Best Educational Institutions
Exhibit VI: The World's Largest Companies by Revenues
Exhibit VII: Best Countries in Terms of Ease of Doing Business
Exhibit VIII: Ranking of Destination Countries in Terms of Number of Immigrants
Exhibit IX: Distribution of Total US Population by Race: 1990 And 2000
Exhibit X: Hispanic Population Distribution by Region between 1980 and 2000
Exhibit XI: Immigration Pattern in the 1990s
Exhibit XII: US Visa Categories*
Exhibit XIII: US Population (In Millions) Under Alternative Net Immigration Levels: 2007-2060
Exhibit XIV: Reform to Improve Border Security and Immigration Within Existing Law
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