Community | January 07, 2010 | 54 comments

Legalizing Undocumented Workers Would Generate $1.5 Trillion - UCLA Study

EthicalVegan
Legalizing Undocumented Workers Would Generate $1.5 Trillion: Study

Looking for new tax revenue? Try undocumented workers.



At a time when federal, state and local governments are scrounging for revenue, a new study out of UCLA has a bold suggestion: Legalize undocumented workers.

The move would bring an estimated $1.5 trillion (yes, that's trillion with a T) to the U.S. GDP over 10 years, according to the UCLA study.

By studying the trends following the 1986 Immigration Reform and Control Act, study author Raúl Hinojosa-Ojeda concluded that immigration reform would generate tax revenue, raise wages, create jobs and increase consumption.

"If we are going to create a solid recovery with good wages, we have to fix this hole that we have at the bottom of the labor market," Hinojosa-Ojeda said. "This is not about bringing in a lot of workers. This is about your neighbors and if we are better off where everybody in the economy has the ability to fight for their families and to contribute more to the economy rather than staying in the shadows."

Critics haven't started yelling "You lie," but they're close.

Ira Mehlman, of the Federation for American Immigration Reform, says tax revenue from legal immigrants working low-wage jobs would be negligible.

"They are trying to portray this as an economic shot in the arm," Mehlman told the Los Angeles Times. "But I am not sure the American public is going to buy it."
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    Community,   Human Rights,   Immigration
  2. tags:
    undocumented workers Labor Market u.s. gdp UCLA Study
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54 comments // Legalizing Undocumented Workers Would Generate $1.5 Trillion - UCLA Study // Video

  • JohnA
    • 0
      JohnA  
    • So Americans won't do the jobs they do, but Americans have no problem collecting a government check for doing nothing. This is where your welfare state has gotten us. Pathetic.

    • 2 years ago
  • remanns
    • 0
      remanns  
    • There ARE no jobs Americans wont do,.....for the "developed world" price per hour,....at (what should be) the developed world's health and safety minimum standards. I would pick apples for 12$ an hour for 30 hrs a week. You might get 40 hrs a week out of me for 15$ an hour. No WAY 60 hrs. for 10$,.....and if I don't like it YOU DEPORT ME?!? If I break an arm,....YOU DEPORT ME!? F that. Find that employer,....and throw his ass in jail for a long,....long time. NO FINES,....JAIL!

    • 2 years ago
  • Pajarito7
    • 0
      Pajarito7  
    • Maybe just giving citizenship status could have risk towards it. If we put a choice of standards that illegals must do to retrieve citizenship we can shape the lower class of America in a positive way. I propose to receive citizenship illegals should either 1.) Receive at least a 2-year education in the US. or 2.) Join the military. (Learn English for both) That way we would both be happy. Not only would we have a class of higher educated citizens suddenly appear but we would have a good amount of jobs open for the labor class. Military would grieve generals for having more troops better yet bilingual. Then we can easily develop a strategy to fight the drug war in Mexico. As for the newest breed of illegals taking the labor market... I agree, we need to crackdown on these employers and jail them AND secure our border patrol.

      There are many reasons why illegal immigrants would love to have citizenship. I don't need to go in depth with this as my family and friends are illegals in California.

    • 2 years ago
  • panichead
  • oppressed1
    • 0
      oppressed1  
    • You guys are crazy. In dallas alone the tax payers payed 80 million so they could visit the emergency room for aches and pains. I can only imagine what california pays for them everytime they get a cold.

    • 2 years ago
  • JohnA
    • 0
      JohnA  
    • $1.5 Trillion for who, Mexico? We have double digit unemployment now, their solution is to add more people looking for jobs to the mix? We're supposed to add workers to a workforce that can't find enough jobs now, good thinking there. No, I don't think so.

    • 2 years ago
  • jaystyx
    • 0
      jaystyx  
    • The US can save a lot of money by eliminating or scaling down unnecessary branches of law enforcement. The DEA and our overcrowded prison system are some examples.

      However, I don’t believe that immigration laws are something that we should give a pass on. We can also save a lot of money by deporting undocumented workers. You may be able to generate tax revenue by giving them legal status and making them pay into the system. You can also decrease the liability to state and federal governments by making it so they do not take advantage of social services.

    • 2 years ago
  • crob80227
    • 0
      crob80227  
    • "wait till all these illegal aliens take ur jobs, do it better, and for a far less amount that what you are willing to work for" -- rad62864

      Well, if your deeply pro freemarket capitalism rad62864 -- which I assume you are via your slam against "socialized" Police Depts, er, I mean, healthcare -- then you should be in favor of "de-regulating" the labor market and getting government out of the way.

      If Mexicans CAN do it cheaper, faster and better...then as a free-marketer you should be happy! Why use government influence (Immigration law) to unfarily give an advantage to over-paid/unskilled Americans? That's just an example of the government interfering in the free market.....isn't it?

      Why should the government protect "us" from superior and/or cheaper workers?

      In the eyes of a TRUE Conservative these pesky immigration laws banning foreign labor from freely competing in our lands should be viewed as Big Government.

      Instead of "Big Government" expanding its power and creating huge "Bureaucracies" to infringe on the rights of small business owners to acquire the best labor at the cheapest price.......you SHOULD be demanding (as a good Republican) that government total dismantle the huge bureaucracy that is Immigrantion and adhere the strict Constitutionalist intreptreations that ban government from interfering with the rights of citizens to run a business any way they see fit.

      Right?

    • 2 years ago
  • rad62864
    • 0
      rad62864  
    • this is fucking stupid and u idiots believe this shit!!!! How about all the socialized medicine that will have to be given becuase they pay taxes.... You think the economy is bad now!!! wait till all these illegal aliens take ur jobs, do it better, and for a far less amount that what you are willing to work for, then they will ship the money to mexico and beyond!!! Go ahead you lame brain frkn retards

    • 2 years ago
  • Atalanda_Cameron
  • bishopobispo
    • 0
      bishopobispo  
    • Atalanda_Cameron:

      Exactly Atalanda,

      There seems to be very little incentive for an undocumented worker to come forward if the only advantage they have is that they do work for lower wages. If the playing field was equal (i.e. wages, benefits, etc.) why would an employer want to higher a non-English speaking (and possibly) less educated worker? Why wouldn't an employer just a) hire American, or b) hire more undocumented workers who chose not to come forward or have recently crossed the border?

    • 2 years ago
  • MoonLoon
  • remanns
    • 0
      remanns  
    • If absolutely EVERY laborer working for ANY American or American company,.....anywhere,....doing anything,....was guaranteed the same health, safety, and wage standards,....then you could legalize every illegal in this country. As long as business COULD NOT by any means,....cheat a non citizen,....or pay less than the "standard continental domestic" wage,.....your going to improve the living standards of the laborer. Put employers who dont obey the labor laws in jail.Swiftly. Business will tend to choose english speakers if they HAVE to pay any laborer,...citizen or not,....the same wage.
      ( and the bastards could no longer use deportation as a lever to F the working man )

    • 2 years ago
  • crob80227
    • 0
      crob80227  
    • If we leaglize them then we would have to pay them minimum wages and they would also be paying taxes.

      Right now we have millions of workers paying no taxes....but getting the benefits of services that legal workers pay for through taxation. If they pay taxes that revenue will allow ALL our tax rates to be LOWERED....wouldn't it?

      I don't think anything would really change labor market-wise. The reason Mexicans DO some of the labor they do is because it's seasonal and transitory and they are (for a variety of reasons) mobile while most legal Americans aren't. We generally have houses, mortages, kids....we cant pick up and move to follow these temporary constructio/landscape jobs from state to state.

      Who among us can really work 2 weeks and then relocate to another job site 100 miles away to work for another week?

      If we legalize them they'd for all practical purposes still be doing the exact same jobs, just getting paid more and paying taxes which would benefit all of us.

      Someone made the arguement that some businesses can't afford to pay workers more than $1/hr under than table and that if we leaglize them they'd go out of business.

      GOOD!

      If your company is so incompetently run that they only way you can make a profit is by using slave labor, knock off parts and cutting corners in construction....then it is a GOOD thing that your business fails.

      Do you really want a "cheaper" roof installed using one of these fly-by-night operations only to have the thing totally redone 6 months later because the bullshit artist you hired was using untrained illegals, counterfiet parts and cut so many corners that the thing cavedi after the first snowfall? Would you really be saving any money in the long run if you just end up re-doing your roof TWICE?

    • 2 years ago
  • jubal
    • 0
      jubal  
    • crob80227:

      This is a good argument in favor of legalizing the illegals. Employers won't be able to take advnatage of these workers anymore and everyone will be on the same level of competition and paying taxes on wages that are at least the minimum wage.

      So many undocumented workers get shafted for their pay by their employers because of the fact that they are undocumented. Here is your paycheck, I reduced it by $200, tough, if you try to complain I will call ICE and have you deported.

    • 2 years ago
  • aquamammal
  • jubal
  • samthesixth
    • 0
      samthesixth  
    • If one reads the study I think they will conclude that she has some pretty over reaching assumptions, particularly concerning wages and how fast they will rise.

    • 2 years ago
  • trut
    • 0
      trut  
    • Legalizing the illegals is the stupidest idea I have ever heard. Millions of illegals bringing down the cost of labour isn't going to help the common man. Send them ALL back and maybe they can try and fix the screwed up countries they came from. Hasn't anyone heard of laws that's commenting here?

    • 2 years ago
  • Pajarito7
    • 0
      Pajarito7  
    • trut:

      Seems like you have no facts and your just biased. If our government had the power to deport everyone, don't you think we would have deported them already?

    • 2 years ago
  • trut
  • JonRaymond
    • 0
      JonRaymond  
    • The fact is that the undocumented are in this country, like it or not. One of the major problems is that the immigration system in the U.S. is broken (like everything else in the US). It takes people 15 to 20 years just to become naturalized (a.k.a."legal"). They also pay millions of dollars in sales taxes in the meantime. So get the facts before you judge.

      Like AC says, she doesn't know anything about immigrants and it looks like no one else here against this idea does either. Left or right has nothing to do with it. Why must someone always try to polarize people?

    • 2 years ago
  • slarabee
  • remanns
  • trut
  • adveritas
    • 0
      adveritas  
    • Great idea but I think it doesn't solve the problem as to why we're having so much immigration. It's kind of sad that we're more inclined to profit then to fix the problems. Truth be told, there is a lot of competition for jobs, even if they are taking jobs most americans wouldn't take (meat industry for example). But that is still assuming that we would tolerate inhumane profiteering. It's kind of sick.

    • 2 years ago
  • kagemusha23
    • 0
      kagemusha23  
    • Hell no, unless they can pay for the back tax they owe then they need to leave. So far they get better healthcare and education then I do and I'm a citizen of the USA! Not to mention that you're going to have to find them all and possibly have to force some of them to comply with this silly legalization. Also with the economy the way it is do you think employers are going to pay higher wages? Nope, they're going to start laying people off or find people to work for a low wage. The CEO's of corporate america arent going to take a paycut either, they're going to pass the savings on to you which means prices of goods are going to go up.

    • 2 years ago
  • Pajarito7
    • 0
      Pajarito7  
    • kagemusha23:

      Sorry but that's not how economics works but don't worry it won't even get that far as to prices going up. The truth is, companies won't lay off all their workers just because illegals will finally have their rights and fair wages. Otherwise these companies would run out of business but tell me. Which company wants to run out of business? Obviously they would have no choice but to do business the right way. If this happened, it would be really hard to find more undocumented illegals to hire. Sure there will be more coming in, but the total number will be reduced to a few and that's where we need to start fresh on securing our border even better.

    • 2 years ago
  • GavinTheMother
    • 0
      GavinTheMother  
    • The options for not legalizing illegal immigrants don't seem viable. We can't realistically deport them. We can't imprison them. We can't fire them. We can't fine them. Contrary to a lot of popular right-wing rhetoric, most of them have jobs. Jobs you and I wouldn't want or settle for even if we are unemployed ($5 an hour working in a field 50 hours a week...$8 an hour doing dishes in LA). If you were raised in America and an illegal immigrant stole your job, who's fault is that? Many of them speak very little English. The few who have an expertise valuable for a high paying job can't use this expertise to get a job in the US anyway. A retroactive amnesty for existing illegal immigrants is the only realistic possibility.

      Why are the legal immigrants, which 99% of us are, so pissed off at people who have so little and aren't that much different than the we are. We look at our forefathers that took great risks to come here and create a new life as heroes. These people aren't any different.

    • 2 years ago
  • trut
  • Saladin
    • 0
      Saladin  
    • GavinTheMother:

      They come from a place where you have to bribe drug-lord bought police from not arresting you on no charge.

      They come from a place with no running water, barely any food, no job opportunities, homes built out of trash and unbelievable violence and corruption.

      They'd stay, believe me.

    • 2 years ago
  • JohnA
  • trut
  • eskimoe
    • 0
      eskimoe  
    • Barely nobody is from this country. Immigrants built it. It seems like it has more pros than cons. The study I guess proves it.

    • 2 years ago
  • rad62864
  • bishopobispo
    • 0
      bishopobispo  
    • Whoa, whoa, whoa.

      Something about this doesn't sound right. Not to mention, the speaker (Ira Mehlman) spoke over a few points I think should be addressed first.

      When we say 'legalize' workers, what does this mean exactly? Does that mean we are granting only working Visas, or, are we giving workers citizenship?

      Ira also stated that wages among (now illegal) workers would increase and that their legalization will prevent employers form taking advantage of cheap labor. Well I'm thinking this wage increase would lead to either 1)those companies going out of business or 2) those companies seeking workers who haven't be 'legalized'.

      Ether way it seems to be a lose. I can't see companies that prey on illegal workers as those with a viable business model. Nor do I see them realizing the error in their ways and going, 'oh, I guess we're going to have to pay them more now!' Why wouldn't they just hire more undocumented workers?

    • 2 years ago
  • Pajarito7
    • 0
      Pajarito7  
    • bishopobispo:

      Easy, companies wouldn't keep rehiring illegals simply because ALL illegals will now have citizenship. The choices you say? 1. ) Those companies going out of business? Funny cause I don't think any business wants to run out of business, so legalizing gives them NO CHOICE but to treat them fairly with U.S. rights and wages. 2.) Those companies will continue to seek undocumented workers. Sorry but there won't be anymore undocumented. Yes a few will still be pouring in America. But if ALL illegals are now documented, it would be really really hard to keep finding these cheap labor undocumented workers. Eventually these rich companies will have to pay their dues like they're suppose to.

      This why border security is an issue that needs to be fixed before granting illegals citizenship.

    • 2 years ago
  • bishopobispo
    • 0
      bishopobispo  
    • bishopobispo:

      @Pajarito, I think you're making assumptions with information you don't have. Please tell me if I'm wrong.

      Well, first, I'm not sure if undocumented workers will become citizens (as you've stated) through this plan. Ira Mehlman only spoke of legalizing them. Whether this means granting them citizenship or simply giving them working visas are two wholly different things.

      Also, will this program apply to those who can prove they have been here for X amount of time or will it apply to anyone who is able to make it across the border? If it's the former, that would not prevent more undocumented workers from undercutting the newly legalized workers by asking for lower wages. And if it's the latter, that sounds too good to be true (not to mention a politician's nightmare). "Come across the border and you're automatically granted a working visa!"

      Hmmmm.

      And as for the businesses. I in no way implied that any company wants to go out of business. I simply implied that owners will attempt to keep costs down by hiring workers who ask for lower wages. And because Ira Mehlman's program doesn't clearly state or imply that ALL undocumented workers will become legalized (also as you've stated) I'm not sure why these employers wouldn't continue to go after illegal immigrants.

      But back to the root of the problem - border security. Let's go after employers who hire undocumented workers and throw them in jail. If there is no demand for cheap labor, couldn't that prevent undocumented workers from staying or wanting to come here?

    • 2 years ago
  • Atalanda_Cameron
  • Pajarito7
    • 0
      Pajarito7  
    • Atalanda_Cameron:

      Legalization may not get rid of all our problems towards illegals but it will help America financially recover and Yes, it will make their lives better because they will be relieved of fear from being deported. Sure they're not suppose to be here anyway but what can you do when its in human nature to try to survive...financially, healthwise, or even environmentally. For example in Mexico 40% population lives in poverty, their healthcare and their economy is flushed and corrupt. Not to mention the drug problem going on simultaneously. . . If I ever lived in those conditions I too would look for another style of life. We only live one life and its us to make the best of it. There's obviously going to be countries in poor conditions but that's why I believe its up to the U.S. to change the way we help countries that our asking for help. Help should first come to our close neighbors (Canada and Mexico) because that's what will affect us first if they go bad.

      Legalizing immigrants is a good idea but that's why border patrol needs to be increased and military intervention in other countries is not going to get us there either. Knowing that fact that new illegals can immigrate in America tells us that our border security is weak. I propose that if we bring our troops home to America rather than fighting a costly war we can get a better grip on our border security. Destroying families in other countries will simply keep generating even more terrorist and hate onto America. Just like violence creates more violence. Something we don't have to do towards illegals rather than keep deporting them.

    • 2 years ago
  • JonRaymond
  • Pajarito7
    • 0
      Pajarito7  
    • Yes! Good Idea! Illegal immigrants are not going to slowly be fished out by ICE or the federal government. Its just impossible to take that many people out of the country. Even so, why keep destroying lives? Why make America worse? Especially because they play a huge role in our economy within the labor market, if all illegals were to be deported our economy would most certainly go down the drain even further. Realize that its not about illegals taking our jobs. There are labor jobs out there that citizens simply just don't want to take! It's time to just give them what they came here for, an opportunity to live a better life. Isn't this why Anglo-Americans came to North America anyway? To live a better life and future away from the aristocracies and monarchies in Europe? America is about to be one of the most diverse countries in the whole world if it isn't already. It's time for change, and this is a great way to address the problem.

    • 2 years ago
  • JohnA
  • masterzip
  • GavinTheMother
  • adveritas
  • boywhocould
    • 0
      boywhocould  
    • masterzip:

      any cost incurred to the US is off set by the fact that its already incurring the costs, by this I assume you mean the "social" services that we provide to those in need, Welfare, health care etc. . . not only would it generate revenue but it would reduce costs incurred trying to deport people back over the border. of course the problem is getting them to register and actually pay the taxes they should. The optimism that assumes these people would willingly loose the usual 15 - 25 % average in taxes is a bit naive. . .(just saying :)

    • 2 years ago
  • wellhunggimp
    • 0
      wellhunggimp  
    • masterzip:

      "The optimism that assumes these people would willingly loose the usual 15 - 25 % average in taxes is a bit naive."

      Hey boywhocould, you mean more naive than expecting Americans to pay taxes?

    • 2 years ago
  • jubal
    • 0
      jubal  
    • Now we're talking. That is boo koo bucks we need to pay down the National Debt. Legalize all aliens and get them paying into the system, what a genius idea.

    • 2 years ago
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