President Trump’s Merit-Based Immigration Plan Saves 1 Trillion Dollars

immigration

The amazing thing about this report is that it was done by a panel of pro-immigrant researchers and not some right-wing organization.  The Heritage Foundation laid out the savings documented by the liberal Academics of Scientists.

The trillion dollars in savings amounts to $3,000 for every working man and woman.  The cost of allowing low or no skilled workers into the country has two deleterious effects on the country.  First, it creates a massive amount of welfare spending and secondly, those who do look and find work drives down the wages for American workers.

The Heritage report was written by Robert Rector,  who is the Foundation’s immigration specialist.  He says:

To cover the future cost of one year’s inflow of low-skill immigrants, the government would need to immediately raise taxes by a lump sum of $67 billion, put the money in the bank earning interest at the inflation rate plus 3 percent, and use the interest and principal to cover long-term costs. ($67 billion equals around $800 for each U.S. household currently paying federal income tax.)

Of course, in the next year another 470,000 would arrive, requiring another lump sum payment of $800 per taxpaying household. The year after, another 470,000 will arrive requiring another $800 per taxpaying household, and so on…

The future net outlays (benefits given less taxes paid) for the inflow of 4.7 million low-skill immigrants will be around $1.9 trillion (in constant 2012 dollars).

The savings constitute 10 years of Trump’s reduced immigration plan, limiting unskilled workers over a seventy five year period and would save an additional 1 trillion dollars for every decade immigration of low skilled workers remain reduced.

By limiting future legal low-skill immigration, the RAISE Act could save at least $1 trillion. Additional large savings could be achieved by limiting future illegal immigration. These saving figures apply to only a single decade of low-skill immigration. Similar savings would occur by limiting low-skill immigration in subsequent decades.

There is a downside but only if you are a liberal Democrat.  By reducing the number of immigrants, you rob the Democrats of tens of thousands in potential voter fraud and support for their candidates.  I call that a win/win situation.

Rector continues:

Metaphorically speaking, low-skill immigrants increase the economic pie, but they eat nearly all the increase themselves.

Low-skill immigration reduces the wages of similar U.S.-born workers. An immigration-induced increase in the low-skill labor force of 10 percent can reduce the wages of low-skill non-immigrant labor by 3 to 10 percent.

Some studies show wage losses as high as 17 percent. Black male wages and employment are especially hard hit. By reducing wages of less skilled non-immigrants, low-skill immigration increases economic inequality in the U.S., redistributing income from the least advantaged Americans to the more affluent.

Presidential adviser Steven Miller said:

At the end of the day, President Trump has been clear that he is a pro-high-wage President.  He ran as a pro-high-wage candidate, and that’s what this policy will accomplish.

At the same time, to the point about economic growth, we’re constantly told that unskilled immigration boosts the economy.  But again, if you look at the last 17 years [of mass immigration], we just know from reality that’s not true.  And if you look at wages, you can see the effects there.  If you look at the labor force, you can see the effects there.

And so again, we’re ending unskilled chain migration, but we’re also making sure that the great inventors of the world, the great scientists of the world, that people who have the next great piece of technology can come into the United States and compete in a competitive application process — a points-based system that makes sense in the year 2017.

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