economy

We all know that immigration — legal and unauthorized — has been a hot-button topic for a while now. This is the case even before President Obama has even seriously tackled the question of immigration reform. One of the key points of contention has been whether immigrants contribute more to American society than they receive in social services.

In recent weeks, a few new studies try to shed some more light on this question and in the process, inject a little objectivity and data into an otherwise emotionally-charged debate. The first report comes from the non-partisan Fiscal Policy Institute and as described at the Immigration Impacts blog at the Immigration Policy Center, the economic contributions of immigrants constitute a net benefit for their communities:

The report studies the 25 largest metro areas (by population) which produce nearly one half of the total gross domestic product of the country. It shows that in the country’s main metropolises, the share of the immigrant population stacks up neatly against their share of economic output. For example, immigrants are responsible for 20% of economic output and make up 20% of the population in these 25 metropolitan areas. In other words, immigrants pull their own weight.

From the report: . . . “From the Pittsburgh metro area, where immigrants make up 3 percent of the population and 4 percent of economic output, to the Miami metro area, where immigrants represent 37 percent of all residents and 38 percent of economic out¬put, immigrants are playing a consistently proportionate role in local economies.”

A second newly-released report comes from the Migration Policy Institute and examines the economic impacts of unauthorized immigrants in the U.S. Again as described by the Immigration Impacts blog, the report finds that considering the costs and benefits associated with unauthorized immigrants, both cancel each other out in the end:

The overall impact of illegal immigration on the U.S. economy is small. According to [Economics Professor Gordon Hanson, the report’s author], “Illegal immigration produces a tiny net gain to the U.S. economy after subtracting U.S.-born workers’ losses from U.S. employers’ gains. And if we account for the small fiscal burden that unauthorized immigrants impose, the overall economic benefit is close enough to zero to be essentially a wash.”

Enforcement against illegal immigration is expensive. The U.S. spends approximately $15 billion annually enforcing immigration laws. A simple cost-benefit analysis indicates that the high level of spending on enforcement is not justified. . . .

MPI policy analyst Marc Rosenblum and Jeanne Butterfield of the National Immigration Forum largely agreed with Hanson, but took the argument a step further, making a strong case for legalization . . . Rosenblum pointed out that the net fiscal impact of illegal immigrants improves over time—immigrants are not only workers, but consumers, entrepreneurs, and investors, and their contributions improve over time.

This particular report basically confirms earlier research that show that legal immigrants constitute a notable net gain for American society and its economy and that taken together, unauthorized immigrants also contribute more both in the short term (through paying sales taxes, income taxes, overall purchasing power, and entrepreneurial activities) and long term (by becoming productive citizens and not having to rely on public assistance).

Finally, at New America Media, a third article on the contributions of immigrants points out that as the laws currently exist, legal immigrants are prohibited from using Medicaid (the federal healthcare program for low-income Americans), even though they pay federal taxes that help to fund such programs and that in essence, recent legal immigrants are subsidizing healthcare for everyone else:

Currently, legal immigrants, who work and pay taxes that contribute to our health care system will continue to be ineligible to receive federally-funded Medicaid services for five years. In this case, we are not talking about those who make at least 133 percent of federal poverty level and could access affordability credits like everyone else for purchasing insurance in the exchange. We are talking about immigrants with the lowest incomes. It is unreasonable and saddening that under the current health reform proposals, the people who really need it will not get it.

I am under no delusions that these reports and data will change the mind of hard-core or extremist opponents of immigration (legal and unauthorized) anytime soon. Rather, for those who are willing to consider valid, reliable, and nonpartisan research, these studies are useful in wading through some of the political ideology and seeing what the actual numbers say.

With that in mind, the time for comprehensive immigration reform has come. By comprehensive, it means that we need to focus on more than just reinforcing our border with Mexico. Instead, it also means overhauling our immigration detention system, which, a new bipartisan report finds, has a long and documented history of bureaucratic lapses, with the detainees routinely denied basic rights such as being told why they are being held.

It also means providing unauthorized citizens already in country with a path toward eventual citizenship and access to opportunities to achieve social and economic mobility, such as the DREAM (Development, Relief and Education for Alien Minors) Act (currently being debated in Congress) that would allow young immigrants without legal status who demonstrate “good moral character” to apply for citizenship.

Comprehensive immigration reform is particularly relevant and important these days as American society and the world in general continues to wrestle with the benefits and drawbacks of globalization and living in an increasingly interconnected world. As a new book titled Immigrant, Inc.: Why Immigrant Entrepreneurs Are Driving the New Economy (and how they will save the American worker) describes:

Both a revelation and a call-to-action, Immigrant, Inc. explores the uncommon skill and drive of America’s new immigrants and their knack for innovation and entrepreneurship. From the techies who created icons of the new economy — Intel, Google, eBay and Sun Microsystems — to the young engineers tinkering with solar power and next-generation car batteries, immigrants have proven themselves to be America’s competitive advantage . . . [and] will create the American jobs of the future — if we let them.

That last part seems to be the key — immigrants have much to contribute to American society and our economy, if only we let them do so, rather than trying to get rid of them.

In a recent post titled “The Degrees of Immigrant Bashing,” I described various ways in which the recession has led to increased anti-immigrant hostility, leading to blatantly offensive comments from public officials, acts of violence and hate crimes, and misguided federal regulations. As a follow up, blogger Michelle Waslin at Immigration Impact writes that, perhaps ironically, the recession seems to have resulted in fewer anti-immigrant proposals and legislation being passed this year at the local and state levels:

According to the Progressive States Network (PSN), budget deficits have meant that states are unwilling to pass legislation with a cost attached. Immigration is less of a wedge issue in 2009—that is, politicians seem less willing to push anti-immigrant platforms because candidates who did so in the 2008 elections lost.

PSN also reports that anti-immigrant legislators have been marginalized in 2009. Bills introduced by Texas State Rep. Leo Berman, a notorious anti-immigrant voice, got no traction, even from within his own party. No votes were taken on any of his 9 anti-immigrant bills. In Arizona, State Senator Russell Pearce has had little success with his anti-immigrant agenda this year. An Arizona Republic editorial criticized Pearce for devoting time and energy to immigrant-bashing instead of doing the real work that needs to be done on the state budget. Even Prince William County, Virginia Executive Corey Stewart—well known for his anti-immigrant rhetoric—has backed down, acknowledging that problems other than immigration deserve more attention. . . .

It is clear that vehement anti-immigrant legislation is not as fashionable as in past years. These measures have proven to be too expensive and ineffective, Americans care more about real solutions than scapegoating and rhetoric, and anti-immigrant politicians have not been successful on election day.

It’s encouraging to see that most politicians (apparently on both sides of the ideological divide) recognize that indeed, there are many more important issues these days than demonizing and dehumanizing immigrants, legal and undocumented. I also believe that many of them also understand that in this current recession, immigrants — again legal or undocumented — can make significant contributions to the American economy if given the chance.

That is, while many immigrants are disproportionately affected by these tough economic times, if they’re allowed to stay in the U.S., many are more than willing spend their income to help support local businesses, pay federal income and social security taxes, and state sales and gas taxes, to name just a few examples. This is especially true in immigrant-heavy states and cities such as California and Texas, that are being hit especially hard during the recession.

In other words, at a time when our country is struggling, we need everybody to pitch in and help out, regardless of their race, ethnicity, skin color, or immigrant status.

As news organizations are reporting, the Senate has confirmed Gary Locke as the new Secretary of Commerce. Below is an Associated Press news clip of President Obama introducing Secretary Locke:

If you’re keeping track, Sec. Locke is the third Asian American in President Obama’s cabinet, following Secretary of Veteran Affairs Eric Shinseki and Secretary of Energy Steven Chu. Three Asian American cabinet secretaries is unprecedented in American history and needless to say, I join many others in expressing my elation and gratitude at President Obama’s picks for his cabinet.

For those who haven’t heard of Sec. Locke before, as Governor of Washington between 1997-2005, he was the first Chinese American governor in American history and the first Asian American governor of a mainland state. He was seen as a rising star in the Democratic Party and a possible Vice Presidential candidate. However, he declined to run for Governor after his second term and returned to private life thereafter.

As illustrated in PBS’s excellent 2005 documentary Searching for Asian America, Sec. Locke is known for being very intelligent and detail-oriented and as such, in many ways personifies some common cultural assumptions about Asian Americans. That’s not to say it’s good or bad, just to say that he represents a “safe choice” for President Obama in that way and was an attractive option since Obama’s first two nominees for the position both dropped out.

But I think another reason that President Obama chose Gary Locke is because, as also pointed out in the PBS documentary, Sec. Locke has many ties to the land of his ancestors, China. Therefore, it’s probably safe to assume that President Obama felt those personal and professional ties to China would come in handy as our nation and its economy tries to navigate through this recession and the 21st century global economy in general, one in which China will play a major role.

As such, Sec. Locke is the latest example of a theme that I’ve been writing about for some time — how Asian Americans are forging a new identity for themselves, one in which our “foreignness” or more specifically our transnational cultural ties and networks back to Asia, are seen as assets, rather than liabilities as we assert our identities as legitimate Americans in the 21st century.

In other words, in this era where American society is inevitably becoming more racially, ethnically, and culturally diverse and where economic issues are likely to be a paramount concern for Americans individually and American society institutionally, we as Asian Americans now have the opportunity to make a significant contribution to American society. In the process of doing so, we can also help to reshape the image and definition of what it means to be an “American.”

This expanded definition of being an American includes not just emotional attachment and patriotic loyalty to an American identity, but also involves helping to achieve greater economic prosperity for American society. As we’re seeing right now, economic issues have emerged as significant factors and challenges to American society and its overall sense of national identity.

Within this contexts, Asian American are poised to make significant contributions to rebuilding the American economy and helping it become more competitive in the 21st century. These opportunities can involve many different examples. First, we know that at the aggregate level, Asian American households have the highest median income of all the major racial/ethnic groups.

Even when it comes to personal/per capita level, as data is beginning to show, US-born Asian American have matched or even exceeded the income level of Whites. Of course, we have to be careful and recognize that not all Asian Americans are economically successful, but overall, I think our community is doing well.

In fact, a recent article at New America Media noted that said communities of color have an estimated $282 billion in purchasing power, with Asian Americans possessing about $90 billion of that.

There was also the recent commentary in the NY Times which suggested, slightly tongue-in-cheek, that one way to stimulate the economy is to let in more Asian immigrants, who would buy up all he sub-prime homes, work 14 hour days to do it, improve the national savings rate, and start up businesses that will employ American workers.

More realistically, we’ve already seen examples of Asian enclaves proliferating around the country — in both urban and increasingly suburban areas — that have resulted in these areas becoming revitalized, with new businesses, jobs, homes, and other amenities being created.

The point is, the economic contributions of Asian Americans to the American economy is undeniable.

The second way that Asian American can contribute to a new and stronger American society relates more to the cultural level. As I mentioned earlier, it is clear that the world in general and American society in particular is becoming more diverse, globalized, and transnational. With that in mind, Asian Americans occupy a very central role in this evolving process.

As the U.S. seeks to maintain its influence around the world, it has no other choice but to embrace these global trends and to build more mutually-respectful connections with countries around the world, particular in Asia. In fact, Hillary Clinton has been doing just that as Secretary of State — in February she made high-profile visits to Japan, South Korea, China, and Indonesia.

So with this mind, Asian Americans can serve as a valuable facilitators in these connections because on the individual, community, and institutional levels, we still have strong ties and networks to Asian countries. This can take many different forms — maintaining relationships with friends and family and sending remittances back there, or using our bicultural skills and resources to do business back in Asia, or bringing our educational expertise to work on issues and projects focused on environmental sustainability, social equality, or human rights.

In the case of Secretary Locke, I think he represents this new form of Asian American identity — a “real” American of Asian ancestry but whose Asian ancestry can be a significant asset and advantage in terms of making significant contributions to strengthening our country, our economy, and our society.

Many Asian Americans (and for that matter, Americans from all kinds of backgrounds) are in a similar situation and as such, also have the same opportunity to become leaders in their community and in our society in the 21st century.

Make no mistake, all the available evidence suggests that the American political economy is headed for a major crash.  Some are even speculating that this is the end of American economic dominance in the world’s financial market.  But don’t be deceived by the blame-the-victim rationalizing that’s being floated now.   Let’s be clear about what policies and which people are behind the current financial crisis: neoliberal policies and the overwhelmingly majority of economically privileged white men (photo from same link) who created, implemented and benefited from those policies.

Neoliberalism refers to a set of policies that encourage “less government” and unfettered (and unregulated) capitalism.   The key elements of neoliberalism include: 1) the rule of the market, 2) reducing government expenditures on social services, 3) deregulation, 4) privatization, and 5) gutting the notion of “the public good.”    While this may strike some readers as sounding astonishingly similar to any recent Republican stump speech, neoliberalism has infected Democratic politics as well, and either Clinton’s policies (and way too many of Obama’s, for my tastes), fit neatly within the framework of neoliberalism.  Remember, “welfare reform” was a large part of what got Bill Clinton elected, and that’s a quintessential neoliberal policy.   Now, it seems self-evident to me what the connection is between neoliberalism and the current financial crisis, but allow me to connect a few of the dots here.   As those in the White House and Congress, including John McCain, touted the benefits of deregulation (link opens video of interview with McCain) of the financial markets and passed legislation “freeing” up those industries from any sort of government oversight, whole new markets developed and a few people got very, very rich.   Many of those who got very, very rich did so in financial services that are obtuse at best and an elaborate shell game at worse.   Others got very, very rich by targeting minority communities for subprime mortgages, the new version of “redlining.”  Now, those who conceived of, established and profited from these businesses have either cashed out or, if they’re still in the game, are looking to the U.S. tax-payers (some of the same people who’ve been fleeced by these schemes) for a $700 billion bailout, making the U.S. government the insurer-of-last-resort for these highly risky capitalist ventures.    The end result of neoliberal policies is that while a handful of people get very, very rich, these policies simultaneously exacerbate the suffering of just about everyone else and increase domestic and international instability.    So, what we’re seeing now is just the logical, perhaps inevitable, result of these policies.

Economically privileged white men have had a disproportionate level of involvement in the development, administration and profit from neoliberalism.  If you look at the roster of those in power on Wall Street and in the financial services sector more broadly in the U.S., what you will see is overwhelmingly white men who have gone to elite schools and, for the most part, come from upper-middle class and upper-class backgrounds.   Granted, there are token women (usually white) and people of color (some African American men), but these exceptions highlight the prevailing demographic fact about the industry.   While the “secret societies” of the wealthy occasionally make the news, the fact is, the power elite has been a feature of American life since before C. Wright Mills wrote about it in the 1950s, yet it rarely gets discussed in any meaningful way in the mainstream news. Instead, we get a lot of reporting about how the bailout failure was the result of partisanship – certainly part of the story, but doesn’t explain why conservative republicans and democrats rejected the plan.  Instead, what we need is more reporting, more information about how the state is working to protect the interests of the power elite.

Fortunately, critics on the left have pointed out the elite interests behind this crisis and the proposed bailout.   The reality is that bailout or not, the worsening economic landscape is not going to affect everyone in the U.S. – and the world – evenly.   Instead, people of color, women, and particularly women of color, are going to get laid off, not have health care, lose their homes and be forced into bankruptcy, while privileged white men may have to sell one of their vacation homes.  It’s time to shift this burden back onto the shoulders of the people who created it.

The post Neoliberalism, White (Male) Privilege & the Current Financial Crisis appeared first on racismreview.com.

Most of the news these days is on the economy — the recent financial institution crisis and how it will affect the presidential elections and American society going forward. But as an example of interconnections between social issues, as CBS News reports, the number of immigrants coming into the U.S. (both legal and unauthorized), significantly declined in the past year, with the economy being a big reason:

The wave of immigrants entering the United States slowed dramatically last year as the economy faltered and the government stepped up enforcement of immigration laws. The nation added about a half million immigrants in 2007, down from more than 1.8 million the year before. . . .

The Census Bureau’s’ estimates for immigrants include those in the country legally and illegally because the agency does not ask about legal status. . . .

One other obstacle could be the 69 percent increase last summer in citizenship fees, about 281,000 immigrants applied to become U.S. citizens in the first half of 2008 – less than half the number of applicants in the same period last year. . . .

Much of the nation experienced a housing boom in the first half of the decade, providing jobs that attracted immigrants. The housing bubble burst last year, sending housing markets tumbling and contributing to a slumping economy that some economists believe is in recession.

It should not come as a surprise that with the economy slumping that there are fewer economic opportunities for immigrants (both legal and unauthorized), so that the numbers of immigrants entering the U.S. has declined significantly in the past year.

Of course, the political controversy over unauthorized immigration and high-profile efforts to round up and deport undocumented workers have also contributed to a less-hospitable climate in general. Critics of unauthorized immigration are undoubtedly rejoicing at these numbers, but as sociologists have tried to point out, these issue exist in a larger context of institutional and historical factors that require a longer-range focus if we want true and fair immigration reform.

To go along with the Census’s latest report, the Congressional Budget Office has put together a list of Congressional reports and publications relating to immigration, both legal and unauthorized.

Of particular interest is their report released in December 2007 on “The Impact of Unauthorized Immigrants on the Budgets of State and Local Governments.” For those who are too impatient to read the whole report, it basically confirms what previous research has suggested:

• State and local governments incur costs for providing services to unauthorized immigrants and have limited options for avoiding or minimizing those costs.
• The amount that state and local governments spend on services for unauthorized immigrants represents a small percentage of the total amount spent by those governments to provide such services to residents in their jurisdictions.
• The tax revenues that unauthorized immigrants generate for state and local governments do not offset the total cost of services provided to those immigrants.
• Federal aid programs offer resources to state and local governments that provide services to unauthorized immigrants, but those funds do not fully cover the costs incurred by those governments.

So in other words, on a national level, unauthorized immigration constitutes a slight positive benefit for the American economy but on the state and local governments have to bear a disproportionate share of the financial costs, so at the state and local levels, unauthorized immigration constitutes a slight net loss on their budgets.

That is also a big reason why opposition to unauthorized immigration is so vehement — people situate themselves at the local setting, within their own city, town, or neighborhood — not at the national level. So they mainly see what is immediately around them, rather than taking a national-level perspective.

In that sense, it’s easy to see why people are opposed to the costs of unauthorized immigration that their city or state must bear, rather than recognizing the net benefit at the national level.

As sociologists have also pointed out, part of the solution needs to include the federal government sharing more of those net benefits with the state and local levels, to offset the disproportionate burden of costs that states and cities have to bear. Unfortunately, in today’s financial climate, that’s probably not going to happen anytime soon.