How Undocumented Immigrants make their contribution in the US economy

Student’s name Professor’s name Course code and name Date How Undocumented Immigrants Make Their Contribution in the US Economy A large number of immigrants that come to the US aim to get better work opportunities. Some of these immigrants are legal, while some of them are undocumented. Approximately 11 million US undocumented immigrants pay taxes, are working, and others have started their businesses. Such has created a positive impact on the economy. A high number of undocumented immigrants can be a problem in society in various aspects. Therefore, every nation strives to reduce the number of such immigrants to facilitate the planning of resources. As governments plan to distribute resources, they use the documented number of people within the country. If the nation has many undocumented people, it will be challenging for the government to plan effectively because the allocated resources will be consumed by a number higher than what the government had planned for. Therefore, this paper will focus on how undocumented immigrants in the US positively contribute to economic growth by consuming products, paying taxes, and creating job opportunities. Consumption of Goods and Services Undocumented immigrants contribute to economic growth through their consuming power. As businesses manufacture products and offer services, they expect to have a ready market for such products and services. The undocumented immigrants in the US highly contribute to the number of consumers, increasing the market sager for businesses. The higher the demand for products, the more of such products will organizations produce. This will create an economic benefit for the organizations because they will make huge profits from increased sales. In the absence of undocumented immigrants, there would be a lower level of demand for goods. Therefore, businesses will not make many profits as they would make in the presence of a higher population caused by immigrants. The amount of goods consumed or produced by undocumented immigrants is approximately $800 million (Hinojosa). Such has resulted in a debate about whether to legalize them or not. Their contribution to the US economy through the consumption of goods is noticeable, and therefore, deporting such a large number of people would negatively affect the economy. Undocumented immigrants have already occupied jobs in different sectors of the economy. Hence, deporting them would affect the job sector and lead to an economic decline. Their paycheck helps in economic growth because they use such money in purchasing goods and services (Nadadur). The immigrants are scattered in different parts of the country and no longer shop in mom-and-pop shops but buy goods and services from other stores. Such indicates the huge contribution they make to economic growth due to their demand for goods. The immigrants have a ready job market in the US, which means their consumption patterns are regular. Hence, they create a reliable market for many businesses. Consumer behavior plays a major role in determining the profitability of businesses. For a business to remain profitable in the long run, it needs reliable consumers. A consumer that has a regular paycheck would be considered a part of a reliable market share. This means undocumented immigrants have created a reliable market for businesses due to the regular paychecks obtained from a ready job market (Hinojosa). It is expected that more immigrants will come to the US in search of better job opportunities. Most of the income obtained by the immigrants is spent on local stores while purchasing foodstuffs and clothing. A small percentage of this amount is sent to their loved ones in other parts of the country. The fact that the immigrants consume certain goods and services in the US indicates their contribution to economic growth. The higher the number of undocumented immigrants that come to the US, the higher the demand for goods and services. Given that demand is directly proportional to economic growth, the immigrants make a reliable contribution to the US economy and are therefore not a problem to the nations. Paying Taxes Another contribution of the undocumented immigrants in the US is that they pay taxes. The immigrants might not pay taxes directly from their come, but they pay it through the purchase of goods and services. Every good and service has a value-added tax that every person pays as they purchase the goods. The immigrants require goods and services, so it is unavoidable for the immigrant to pay taxes. Undocumented immigrants pay approximately $11.64 billion in local and state taxes each year. Approximately 8% of every immigrant's income goes to taxes. Such indicates their contribution to making the US economy grow (Gee, Lisa Christensen, Gardner, Matthew, Hill, Misha E., and Wiehe). The taxes collected by the government is used to fund projects and facilitate other activities that contribute to economic growth. Without such taxes, the government would not have enough funds to fund projects, negatively impacting the economy. It is expected that the amount of taxes paid by undocumented immigrants will increase by approximately $2.1 billion. These taxes will increase the amount of money available to the government for funding civic and social deeds. Such would help raise the living standards of people in the US. The better the living standards of people, the higher their consumption power would be. A high level of consumption is a leading factor that contributes to economic growth. Raising the living standards of undocumented immigrants might increase the number of immigrants coming to the US in the future (Gee, Lisa Christensen, Gardner, Matthew, Hill, Misha E., and Wiehe ). However, this will not negatively impact the economy because the immigrants will increase the amount of taxes paid to the US government. Such will facilitate economic growth and the creation of job opportunities through the funding of public projects. Meeting Demand in the Secondary Labor Market  Undocumented immigrants contribute to economic growth by meeting the labor demands in the secondary labor market. The largest number of these immigrants come to the US in search of employment opportunities. The minimum...