There has been a lot of talk about the economic impacts of the migrant crisis, like where taxes are going, who is paying for all of this, and if the Migrants contribute to anything. A crucial element that should be acknowledged is that I am in the group of people that views economics as more of social science than mathematical so I keep the numbers brief, and focus more on social economic theories. Before diving into the effects, we must think about the economy as an iceberg.You have the part that is above the water which everyone can see. This is the regular economy, this is anything. Below the iceberg you have the shadow economy, this is anything illegal, off the books, or conducted in a way that is not normal. This economic theory is extremely important to understanding that this migrant crisis affects as it can dispel many misconceptions.
Overall the effects are mainly positive as the Migrants are willing to work and have a reputation for a strong work ethic. They are employed in minimum wage jobs as many of them often lack qualifications. These jobs are almost always undocumented and a good portion do violate labour laws. There is a grey area in which neither party wants OSHA to shut them down. One major misconception is that the Migrants don't bring anything to the table and are a burden to society. They cite the fact that they don't pay taxes and still use public services, this is a slight twist of facts. Taxes are an interesting thing as most people think of “taxes” as income, asset, inheritance, state taxes which happen annually. This part is true in that Migrants don't pay these. However a sandwich is like $14.99 yet that's not what it truly costs right? Then how does it come up to $16.32, where does that $1.33 come from. That is a sales tax, and Migrants do pay those taxes, so they do contribute into the economy. They affect the GNP(Gross National Product) and GDP (Gross Domestic Product) as they produce and consume the goods and services. It should be noted that the shadow economy does include criminal enterprises such as the drug trade yet there has been very little evidence to support that migrants are involved in it, other than the fact that they often become victims of it. Another contribution to funding the government that seems to go unnoticed is they also pay MTA fees for using public transit. Something that most people who study macroeconomics or public policy learn is that the movement of people regardless if its migration or immigration is that they stimulate the economy. The United states is naturally in a native population decline relying on immigration to have a net positive population. This means that without immigration more people die compared to those born, eventually leading to societal and economic stagnation. At the current moment we can see this happening with China, Japan and a few other countries. We are also seeing the emigration of people from the countryside to cities leaving rural America to die. These Migrants after immigrating are being forcefully migrated to blue cities like NYC where the population is denser. A majority stay while a small number head out of the city. The entire crisis, economic-wise, can be solved simply by moving people to where there are jobs. This could be in rural America, the federal government has done this before with Haitian and Vietnamese refugees with great success.
The movement of people is crucial for a prosperous economy as they toe the line between stagnation and growth. The economic effects in general are beneficial even if it requires us to do more homework on the matter. Migrants may face poverty on the microeconomic wise yet on the macro scale it adds money to the economy.