Biden's immigration policy has been a huge win for the economy, new analysis shows - MSNBC | Canada News Media
Connect with us

Economy

Biden's immigration policy has been a huge win for the economy, new analysis shows – MSNBC

Published

 on


A new analysis from the former chief economist for the White House Council of Economic Advisers found that the large increase in immigration in recent years is a major part of why the U.S. has recently experienced extraordinary economic growth compared to peer nations.

Economist Ernie Tedeschi, now a research scholar at Yale University, writes in a new report that the rise in the immigrant population since 2020 accounts for at least a fifth of U.S. growth since then. That goes a long way toward explaining why the U.S. has grown almost twice as fast as the next best performer among G7 economies since the pandemic. Furthermore, he notes, “absent immigration, the US labor supply would have shrunk by 1.2 million since 2019. Instead, it expanded by 2 million.”

The arrival of a large number of undocumented immigrants has helped fuel yet another round of American exceptionalism in the global economy.

That’s a big deal. The report is a reminder of a truism among economists: Immigration is good for the economy, helping bring in new laborers who create goods and services, spend money on goods and services, contribute to the social safety net, and help spur innovation.

But the report also illustrates the odd tension between immigration as a political issue and immigration as an economic issue. Why is it that an economic winner is a political loser?

Currently, President Joe Biden — and much of the media across the political spectrum — has treated the large number of migrants crossing the U.S.-Mexico border as a major political crisis. Some of that is because the system for receiving migrants is disorganized, out-of-date and lacks the resources to process the large numbers coming through, especially those seeking asylum. That’s an important issue that deserves serious attention.

But unfortunately, the migrant “crisis” as broadly understood in mainstream conversation — especially on the right — primarily stems from the fear that “floods” of new migrants are inherently destabilizing and dangerous for the U.S.

Trump hammers Democrats almost daily over the issue, painting migrants as subhumans and “animals” carrying disease and crime to the country. Influential right-wing figures like Tesla CEO Elon Musk warn that the influx of migrants is a Democratic conspiracy designed to fundamentally remake the political and social makeup of the U.S., and argue that too many migrants will “crush all essential services.”

Most Democrats’ response to this has been defensive, implicitly affirming the notion that large migrant populations should be seen as a concern. The president and much of his party have been promising stronger enforcement at the border and making unprecedented concessions to Republicans on hawkish immigration legislation. Biden has used more forceful, at times almost Trumpian rhetoric about shutting down the border.

Two farmworkers tend to crops in Homestead, Fla., on Aug. 21, 2023.Miami Herald / TNS

But this report is a reminder that the arrival of large number of undocumented immigrants has helped fuel yet another round of American exceptionalism in the global economy. Biden’s relaxation of Trump’s harsh immigration policies has not proved burdensome to the U.S. economy, but has served as a boon to it. As Semafor’s ​​Jordan Weissmann points out, Tedeschi’s research comes around the same time as research from the Brookings Institution’s Hamilton Project suggesting that recent revisions in the estimates of undocumented migrants entering the U.S. help account for how employers were able to keep hiring while policymakers were able to get inflation under control.

It is difficult to conceive of Biden, with his track record of risk aversion on immigration policy, shifting his rhetoric radically on this matter. Which is a shame, because Democrats are not going to win the game of trying to match or out-hawk Republicans on immigration. Sure, some moderate degree of beefed-up — and humanely executed — border enforcement may not be a bad policy idea for Democrats to embrace. But Democrats will be strongest when they work with the truth: Migrants, as they have through all of American history, enrich the U.S. Democrats shouldn’t be afraid to say it.

Adblock test (Why?)



Source link

Continue Reading

Economy

Minimum wage to hire higher-paid temporary foreign workers set to increase

Published

 on

 

OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.

Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.

The change is scheduled to come into force on Nov. 8.

As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.

The program has also come under fire for allegations of mistreatment of workers.

A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.

In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.

The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.

Temporary foreign workers in the agriculture sector are not affected by past rule changes.

This report by The Canadian Press was first published Oct. 21, 2024.

— With files from Nojoud Al Mallees

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

Published

 on

 

OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

Statistics Canada says levels of food insecurity rose in 2022

Published

 on

 

OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version