The subject is illegal immigration and its impacts upon the
American economy. Present the economic implications (pro and con) of the current immigration situation and discuss what you would recommend as a solution(s) to this problem. This is a very open ended type of analysis and there is no one specific solution--use your analytical expertise and creativity in constructing this--use of outside data and research is always welcome for this.
There are some pros for the economy from illegal immigration. The labor market becomes more flexible. The direct implication of this is that exactly that type of labor that is required for a project is available. for instance a construction firm gets a large project in San Jose from an internet company. The construction firm has the option of hiring temporary labor from illegal immigrants at reasonable wages and completes the construction work in time and within the stipulated cost. The result of this hiring is that the internet firm's expansion remains on time and within costs and it experiences growth. The economy gains from this growth. The economy is able to use the resources of San Jose because illegal immigrant labor was available (Kposowa. A, 1998).
Further, illegal immigrants have a variety of skills and these can be accessed by businesses economically. How does the economy gain from this? The economy grows because the production of businesses increases and also the tax revenue collections improve (LeMay. M. 2007).
When illegal workers are used the factors of production other than labor are used more efficiently. Thiis helps the US economy. For instance, illegal immigrants enable the firms to use US capital, land, and natural resources to be used more efficiently. For example, if more illegal immigrants are employed by the agriculture industry, the productivity of land improves and US economy is better able to ...
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