TIME: Immigration Is Powering the U.S. Economy

Wendy Edelberg and Tara Watson for TIME look at the recent economic benefits of immigration, including analysis by the Congressional Budget Office [CBO]. “The numbers . . . explain[] what we’ve been asking ourselves,” Federal Reserve Chairman Jerome Powell said [earlier this week], “which is, ‘How can the economy have grown over 3 percent in a year where almost every outside economist was forecasting a recession?’”

The U.S. economy has made a strikingly strong comeback from the pandemic. Recession fears retreated as economic indicators exceeded expectations.  Employment growth has been red hot. Consumer spending has been high.

According to the article, “[t]he increase in immigration estimated by CBO helps to explain this unusual economic recovery and means the labor market may not need to slow much to bring down inflation.”

The conclusion:

“Decades of research have shown the value in significantly expanding immigration. To maximize the economic benefits, Congress will need to create more pathways for legal immigration, reimagine the enforcement system, and support communities that welcome large numbers of immigrants.

It’s well past time for Congress to act on immigration. There are humanitarian reasons to welcome migrants from nations in crises, and the past few years have proven that there are also economic reasons. In future years, the vitality of the U.S. population and economy will hinge on immigration policy decisions made now.”

Fo a similar analysis by NBC News, click here.

KJ