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The Truth Is That We Need Immigrants
First, our immigration “problem” isn’t about Mexico. The truth is, Mexicans don’t come to the U.S. in meaningful numbers anymore – in fact, over the past five or so years, net migration between the two countries has been southbound.
This is partly because NAFTA helped create an industrial sector in Mexico that has produced job opportunities there. It is tempting to think that these are good jobs that Americans lost. But the truth is that most of those jobs are lower-paid jobs requiring minimal skills. They are a step up for people from Mexico’s hardscrabble rural areas, but Americans’ skill levels are higher than that. We can and should aspire to better for ourselves and our children.
More importantly, Mexicans don’t come to the U.S. anymore because Mexico’s demographic curve has converged with that of the U.S., so Mexico doesn’t have large numbers of unemployed and unemployable young people, as it did 50 years ago. Today’s illegal immigrants come from further south or further afield. Most of them come through Mexico, of course, so one approach would be to encourage Mexico to do a better job of policing its southern border.
Second, our immigration “problem” isn’t about growth – at least, not in the way one might think. Because immigration doesn’t hinder growth, immigration supports growth.
There are, of course, numerous factors that affect the pace of economic growth, including the level and incidence of taxes, the volume of government borrowing and cost burdens imposed by regulations. But the long-term, fundamental growth potential of an economy boils down to two factors: population growth and productivity growth. In short, you either need more people, or your people need to be able to produce more stuff -- or both.
In the United States, labor productivity – itself a complex phenomenon with links to education, infrastructure, innovation, and mobility – has been stuck at just over one percent for the past decade or so. Meanwhile, with fertility hovering around the replacement rate, natural population growth is at or just above zero and the average age of our population is creeping upward. As a result, the key to growing our economy is more people – immigration – with skills that upgrade our labor force.
The key to growing our economy is more people – immigration – with skills that upgrade our labor force.
The ugly truth is that we need immigrants. We need them so that we can continue to innovate and prosper. We need them to keep our retirement systems solvent. We need them so that we can remain the youthful, optimistic society we have always been. It may seem ironic, but the truth is, immigrants made America and will make it again in the future.
Matt Rooney joined the Bush Center in June 2015 from a career as a Foreign Service Officer with the U.S. Department of State. At postings in Washington and abroad, Matt focused on advocating market-driven solutions to economic policy challenges in both industrialized and developing countries, and on protecting the interests of U.S. companies abroad.
In Washington, Matt was on loan to the U.S. Chamber of Commerce to create a high-level private sector advisory body for the Summits of the Americas, working closely with the U.S. private sector and with companies and business associations from throughout the Americas to negotiate an agenda to promote economic integration in the region for presentation to the leaders of the Americas. Previously, he was Deputy Assistant Secretary responsible for relations with Canada and Mexico and for regional economic policy. Prior to this, as Director of the Office of Economic Policy, he led interagency and international negotiations in 2008 that produced the Secretary’s Pathways to Prosperity in the Americas initiative, designed to engage with our Free Trade Agreement partners on strategies for ensuring that the benefits of globalization are broadly shared in our societies.
Abroad, Matt was Consul General in Munich, a Consulate General providing a full range of Consular and export promotion services, supporting a permanent presence of 30,000 U.S. forces in two major base complexes, and performing political and economic analysis in support of U.S. diplomatic objectives in Germany. As Counselor for Economic and Commercial Affairs at the U.S. Embassy in San Salvador, El Salvador, he laid the groundwork for free trade negotiations between the United States and the five countries of Central America, and promoted market-based reforms for electrical power. Prior to this, Matt served in various posts in Germany, Gabon and Côte d’Ivoire.
Matt studied Economics, German and French at the University of Texas at Austin and received his Master’s Degree in International Management at the University of Texas at Dallas. With his wife Dianna, Matt has two young adult sons.Full Bio
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Last week, Deputy Director of Economic Growth at the George. W. Bush Institute Laura Collins spoke with Good Morning Texas about immigration myths. During the interview, Collins had the opportunity to set the record straight and address common misconceptions about legal immigrants living in America today. The segment was inspired from facts released earlier this fall by the Bush Institute in the third edition of America's Advantage: A Handbook on Immigration and Economic Growth. Watch the full Good Morning Texas interview here.