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Short Essay #5

Borjas’s claim that a “significant segment of the American population is economically harmed by mass immigration” however this is a necessary evil as “benefits reaped by others, as well as the unquestionable value of increasing cultural pluralism, outweigh those negative effects” is most certainly well-founded and the tradeoffs should be taken into account as the American government dictates its immigration policies. The dynamic places the American working class against the more powerful corporations and business owners who employ not only the working class but also illegal and legal immigrants that will typically work for lower pay and in inferior conditions. It is completely understandable to see why this is problematic for working class citizens who have incrementally worked for safer and more reasonable conditions and a fairer pay. This is why Borjas’s statement is flawed, because it does not have any conditions of governmental regulation to ensure the existing safer working conditions as well as it indirectly advocates for illegal immigration which is problematic due to the absence of a minimum wage for these individuals.

The direct impact to the labor market of unregulated immigration is staggering for the native working-class individual who is depending on their occupation to support his or her family.  The reasoning for this is instead of taking whatever wage and position is offered out of desperate need native workers are “more likely to complain about working conditions and aggressively assert what they believe to be legal pay and workplace rights”. This is not to say that immigrants are not as skilled in negotiation or are weak willed but rather their legal status or lack of savings places them at no place to negotiate and leaves them vulnerable to whatever agreement that they can take to edge out their competition. And although this increase in the labor pool is great for businesses it is also very harmful for the American working class who take a hit to their wages, specifically a “10 percent increase in the size of a skill group probably reduces the wage of that group by at least 3 percent”. This is a clear downside to immigration that will affect a large portion of the lower class in America.

It is also clear that the vast majority of benefits of this immigration surplus profit at the expense of the less fortunate. For example, Borjas states that a 50.2-billion-dollar immigration surplus will cause a 515.7 billion dollar loss to native workers while the native firms gain 565.9 billion.  This exchange, while overall profitable for America is debatable when those who are profiting are more fortunate and those who are losing are the less fortunate. While America is a capitalist society that is accepting of this trade off, government officials need to be asking if the turning of a blind eye to all of the illegal immigration for profit is worth the losses for native workers who depend on their wages. Borjas may be overlooking the fact that this acceptance of a norm may actually be harmful to America overall even if there are business profits.

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Short Essays and Responses

Short Essay 5

In Borjas’ book the very complex subject of immigration is immensely covered. Both the positive and negative effects of mass immigration on different aspects of American society are equally discussed. The benefits and negative effects can both be argued for due to the fact that they influence different parts of American society. Mass immigration can pose major issues regarding economy while also offering major benefits for certain groups. Immigration offers complementaries between natives and immigrants that affect natives in a positive way. They can often make natives more productive, increase the demand for whatever natives produce, and create new job opportunities when immigrants eventually open up their own firms, among others (Borjas, 153). A main group that benefits from immigrantion are the people looking to hire these low skilled immigrants for cheap labor. This can be anywhere from hotel chain owners (elite class) looking to hire cheap laborers to a normal middle class family looking to hire an immigrant for extra help around the house. This economic gain caused by immigrants low wages and productivity is one that a wide range of groups in American society can benefit from. 

While there are many benefits for part of America’s population to reap from mass immigration, there are also some negative effects. A main issue with immigration has to do with the fact that America is a welfare state, and immigrants are not just robots that can work on a factory line all day without any lives outside of work. Immigrants have kids, pay taxes, go to the hospital, can not pay rent, and retire (Borjas, 171). The usual low wages of new immigrants is not usually enough to pay for some of the outside work issues they have to deal with. This problem often begins before any immigrant actually arrives in the country. They hear of the safety net that a welfare state like the United States offers and come here for a more comfortable lifestyle. A lot of immigrants come to America to use the welfare state to their advantage despite the fact they have not contributed to it. In most cases new immigrants low wages make them more likely candidates for welfare programs. This fact takes away welfare opportunities from native citizens that might often need them almost as much. 

A topic that can help to balance out these negative effects on a welfare state is the culture and attitude immigrants often bring to America. Immigrants often will more willingly take on low income labor intensive jobs. This willingness to take these jobs will help to even out some of America’s deadweight, or people offering little to nothing to society. The magnet surrounding America that attracts immigrants often attracts a very vast population of immigrants. Immigrants from different countries often offer different skill sets and work ethics (Borjas, 67). These skills are ones that have been developed from a young age that will eventually add to the countries they migrate to economy. Borjas also points to the fact that immigrants are self selected. They are the ones who chose to leave their lives behind to start new ones. The brighter part of populations around the world realize they are wanted in America, for the most part, and decide to migrate adding to America’s labor force in a positive fashion. 

There is no exact way to answer the question regarding mass immigration having a more positive or negative effect on America due to the fact that both sides of the argument both have ample amount of reasoning given in Borjas book. In my opinion the benefits of mass immigration on different parts of American society, like different parts of the population, economy, and culture and attitude especially in the labor force, outweigh the negatives. Despite the fact that immigrants can often take away opportunities of a welfare state from natives, the low wages they work for can help to balance out this negative. These points given by Borjas could help to change a large part of America’s populations mind on their willingness to allow immigrants into America.   

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Short Essays and Responses

Short Essay #5

The issue regarding what type of person is entitled to preferential treatment in America is undoubtedly a complex and deeply controversial one. In economic terms, the “harm” being dealt to certain groups in the population cannot be fully understood without also examining the distribution of money from the welfare state. The very existence of a welfare state is an attractive proposition for immigrants, as most low-income foreigners looks towards the United States and see that no matter what, they will be compensated for food and shelter at the very least. If they decide to venture to America and reap the welfare however, it directly takes away the potential benefits for existing American citizens. Borjas argues that not only do immigrants take away benefits from natives, but they also use welfare much more on average than citizens born in the United States (Borjas 1777). In addition to taking a monetary hit from accepting immigrants, the acceptance of foreigners into the country also has potential to take away jobs and dilute existing American culture.

         Of course there is another side to this argument with equal relevance and validity. Immigrants wanting to enter the country would likely have a strong work ethic and be willing to take lower paying, labor intensive jobs. The addition of culture and diversification of a population also brings many strengths and opportunities to a country. An argument can also be made that the impoverished existing American citizens may just be deadweight and not offer much to society. The immigrants receiving welfare might be more beneficial in comparison to where it would be going if it just went to the existing American poor. This becomes tricky, however, when topics like immigrants skillsets and levels of immigration are brought up and found to be generally lower than native populations (Borjas 181). The statistics often cloud the theoretical arguments that people try and construct, further concealing any one distinct truth about the matter. This claim could also be countered, however, with an argument that foreign immigrants are not more educated due to a lack of schooling opportunities compared to native United States citizens. This may be true, but does not change the fact that on average, immigrants on average have lower education levels than American citizens. Whether an immigrant has a better work ethic or not, it would be difficult for a high end employer to view the two on a level playing field.         

Regardless of individual stance on this issue, it is clear that there can be no one definitive answer. From an economic and more objective standpoint, immigration poses an issue. More low-income and impoverished people entering the United States will ultimately drain the pool of American welfare, driving taxes up, and potentially even further harming the economy. For the benefit of the country strictly economically, the negative effects of immigration might outweigh the positives. A cultured country has many benefits, but when it starts effecting the economic health and stability of a nation, a line in the sand needs to be drawn. Overall, despite the upsides of immigration, the needs of native American citizens should be prioritized. While immigrants may work harder or be more willing to take low-wage jobs, a country that turns its back on its own citizens to offer foreigners aid is not much of a country at all.

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Short Essays and Responses

Short essay 5 (due October 30)

We’ve now read most of Borjas’ book, and will finish it on Monday.

Using the readings, respond to the statement in bold below. You may take any position on it you like; just be sure that you make a case for your position based on the readings.

It may be true, as Borjas argues, that a significant segment of the American population is economically harmed by mass immigration as the country is currently experiencing it, but this is a necessary cost that the country will just have to bear because the benefits reaped by others (the immigrants themselves and the business/elite class), as well as the unquestionable value of increasing cultural pluralism, outweigh those negative effects.

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Short Essays and Responses

We Wanted Workers ERA

After talking about looking at immigrants as people instead of just workers in his first chapter, among other things, Borjas dives into the economics of immigration. There is a popular economic theory stating that if countries had no borders the world would prosper economically. In theory, workers would move from places with lower GDPs to places with higher GDPs. Traditionally poorer countries would have less workers, so workers would get paid more, an the opposite would happen to the traditionally richer areas. After some time, everyone would be getting paid around the same amount, and productivity would go up around the world.

Borjas argues that though this theory sounds great, economists who believe it overlook the facts that immigrants are people, not just workers. He states that it would take around five hundred years for everyone to move around enough for the world as a whole to start making a lot of money. Also, they would bring different cultures to the area, which economists often overlook. Different cultures have different values when it comes to work, and Borjas argues this could result in some overall loss.