Migrant Influx Brings Economic Growth

By Paul Kiernan of The WSJ. Excerpts:

"The precise scale of that economic boost was laid out in the Congressional Budget Office’s latest long-term budget and economic outlook, released Feb. 7. It estimates the labor force will be larger by 1.7 million potential workers in 2024 and 5.2 million more—about 3%—in 2033 than the nonpartisan agency expected one year ago. Gross domestic product—the value of all goods and services produced in a year—should be 2.1% larger.

Because those extra workers will be paying taxes and generating economic activity that also yields tax revenue, the federal deficit should be smaller at 6.4% of GDP in 2033, rather than 7.3% as projected last year."

"Federal Reserve Bank of Richmond President Tom Barkin said Feb. 8 that the recent rebound in immigration has “helped alleviate labor-market pressures” and thus inflation."

"In the long run, many economists say, immigration is a net economic positive. Because most newcomers are in their prime working years, they tend to contribute more in taxes than they draw in federal benefits. This is especially important as the U.S. population ages."