A recent study by the National Academy of Sciences indicated that although immigration depresses wages, especially for those at the bottom of the economic ladder, immigration increases total economic output between $1 billion and $10 billion a year. Such a statistic is totally irrelevant, because growth in population usually increases total output even when it results in a decline in output per capita. China has a total output that is almost 10 times more than that of Switzerland, but in terms of output per capita, Switzerland is 10 times higher than China. Which country would you want to live in?
Legal immigration alone is now averaging about 900,000 persons a year, resulting in population growth of 0.3 percent annually (including illegals and the children of legals would substantially increase this rate). An increase in economic output of $10 billion a year equates to only a 0.1 percent annual increase. Although the rates sound small, immigration is increasing population at triple the rate of its contribution to increased output. This means that, at present, immigration results in a net decrease in output per person.
Although on an annual basis the negative impact of immigration may not appear large, on a cumulative basis the difference becomes staggering, especially because the negative impact of immigration falls disproportionately on the working man. Based upon the NAS results, if present immigration trend continues, the result will be continued stagnation of real wage rates. Even if inflation continues its relatively slow rate of only 2 to 3 percent a year, real wages would decline 65 to 80 percent over the next 50 years. Welcome to the Third World.
