Mexican Immigrants are a Drain to Our Economy

January 9, 2004

Many believe Mexican immigrants are a benefit to the U.S. economy and cite the fact they pay taxes and do jobs most "other" American won't do. However, they fail to look at the real costs to our economy.

Immigrants probably contribute about $5 to $8 billion annually to the economy but when you look at welfare benefits, crime, and general low productivity of these immigrants, costs outweigh the benefits. The losses to our economy are between $15 and $20 billion annually with a net negative effect of at least $10 billion per year.

Bottom-line: Mexican immigrants do not contribute a net benefit to our economy nor do they help our overall fiscal well being.

The reasons for this are many.

Immigrants to our country are poor and unskilled and this won't change. Their earning power goes down as companies continue to hire Mexicans at or below minimum wage. This keeps downward pressure on wages for entry level jobs and make them undesirable for U.S. born workers. 

Hiring Mexican immigrants insures a low wage pool for companies and helps with their bottom line. It also certainly helps when the government pays for health insurance and other benefits which they won't provide.  Unfortunately, Americans must pay the final bill.

The Mexican government benefits by ridding itself of poor and uneducated citizens who send a significant portion of their wages back to relatives in Mexico, adding an infusion of cash to their economy.

The Bush administration and the Republican party benefit by getting more votes, winning elections and retaining political control which they now have.

Mexican workers have replaced U.S.-born workers in many occupations, such as assemblers, gardeners, domestic workers, hotel workers, office personnel, and farm workers. Mexican immigrants really do displace American workers by depressing wages. This will certainly spread to more occupations.

As this process continues, Mexican immigrants and their supporters find it easier to demand more from American society. Historically supporters of Mexican immigrants have been the Mexican government and U.S. businesses but the Bush administration is now helping them.

All of this will insure a large poor population working near the bottom of the wage scale demanding more and more from a middle class that is shrinking in size and unable to pay taxes for benefits they do not have. The rich will be affected but do not worry since their businesses will benefit by a growing worker population with low wages and few benefits.

This is a downward economic spiral.

Eventually the middle class will be a memory, most of us will be poor or near poverty, the Republicans will still in power and the rich will still be rich.