The hidden costs of illegal immigration: Why short-term gains mask long-term pain

By willowt // 2025-01-28

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While illegal immigration provides short-term economic benefits like increased consumer spending and job growth, it ultimately suppresses wages for American workers and may not significantly boost GDP per capita.
Unauthorized immigrants place a heavy burden on public resources such as schools, hospitals and social services, leading to increased costs for state and local governments.
The presence of millions of illegal immigrants undermines the rule of law and sends a message that laws can be ignored, weakening public trust in government and incentivizing further illegal immigration.
Previous large-scale deportation efforts, such as Operation Wetback, demonstrate that strict enforcement can restore order to the labor market and protect American workers, despite short-term economic concerns.
A solution requires a combination of border security, workplace enforcement, and legal immigration reform to protect American jobs, reduce illegal immigration incentives and maintain the integrity of the immigration system.

The debate over illegal immigration often centers on immediate economic impacts, with proponents arguing that migrants contribute to GDP growth, fill labor shortages, and boost consumer spending. However, a deeper examination reveals a troubling reality: while illegal immigration may provide short-term economic benefits, its long-term consequences are detrimental to American society, straining public resources, depressing wages and undermining the rule of law.

The illusion of economic growth

On the surface, the influx of illegal immigrants appears to bolster the economy. According to recent data, over a million people enter the U.S. annually, many of whom are unauthorized. This surge has led to increased demand for housing, goods and services, with economists like Stephen Stanley of Santander US Capital Markets LLC noting, “The flows of the magnitude in the past two years that we’ve seen have to be having some sort of an impact on the broader economy.” Indeed, job growth has exceeded expectations, with foreign-born workers accounting for a record share of the labor force. Industries like construction, agriculture and hospitality—sectors heavily reliant on immigrant labor—have seen robust employment levels. Federal Reserve Chair Jerome Powell has even credited immigration with providing a “supply-side boost” to the economy, enabling faster growth without stoking inflation. But this rosy picture obscures the darker side of illegal immigration. While migrants may fill low-wage jobs, their presence often suppresses wages for American workers, particularly in industries where they are concentrated. Research shows that past deportation efforts, though controversial, have consistently benefited U.S.-born workers by reducing labor market competition and raising wages. Trump's new pick for Secretary of the Treasury, Scott Bessent, agrees. Earlier this week in an interview with Bloomberg Radio, he disputed their claim that illegal immigration boosts American GDP, saying: “If it were good, we’d just have a road from Tierra del Fuego to the Rio Grande and let everybody who wants to come in, in. We could double GDP, but per capita GDP per American would drop substantially. It’s about American citizens’ standard of living.”

The strain on public resources

Beyond the labor market, illegal immigration places a significant burden on public resources. Schools, hospitals and social services are often overwhelmed by the influx of unauthorized immigrants, many of whom lack access to employer-provided healthcare or other benefits. This strain is particularly acute in border states and cities like New York and Los Angeles, where local governments struggle to accommodate growing populations. Moreover, the long-term fiscal impact of illegal immigration is deeply concerning. While migrants contribute to tax revenues through payroll taxes, their net fiscal impact is often negative. A 2017 study by the National Academies of Sciences, Engineering and Medicine found that first-generation immigrants, particularly those without legal status, cost state and local governments more in public services than they contribute in taxes.

The erosion of the rule of law

Perhaps the most insidious effect of illegal immigration is its erosion of the rule of law. When millions of people reside in the country unlawfully, it undermines the integrity of our immigration system and sends a dangerous message: that laws can be ignored with impunity. This not only weakens public trust in government but also incentivizes further illegal immigration, creating a vicious cycle that is difficult to break. Historical context underscores the importance of enforcing immigration laws. Past large-scale deportation efforts, such as Operation Wetback in the 1950s, were controversial but ultimately successful in restoring order to the labor market and protecting American workers. While critics argue that mass deportations harm the economy, the evidence suggests that the long-term benefits—higher wages, reduced strain on public resources and restored respect for the rule of law—far outweigh the short-term costs.

A path forward

The solution to the illegal immigration crisis lies in a balanced approach that prioritizes border security, workplace enforcement and legal immigration reform. By cracking down on employers who hire unauthorized workers, we can reduce the incentive for illegal immigration while protecting American jobs. At the same time, expanding legal pathways for skilled and unskilled workers can ensure that our economy continues to benefit from immigration without undermining the rule of law. As we grapple with the complexities of immigration policy, we must remember that the stakes extend far beyond economics. Illegal immigration is not just a matter of GDP growth or labor shortages; it is a question of national sovereignty, public safety and the future of our society. By addressing this issue head-on, we can build a stronger, more prosperous America for generations to come. In the words of one immigration expert, “The short-term gains of illegal immigration are a mirage. The long-term costs are all too real.” It’s time we stop chasing illusions and start confronting the hard truths. Sources include: TheNationalPulse.com Carsey.unh.edu Bloomberg.com