They Left Everything and Built America
“The American ideal is not that we all agree on everything, or that we all look alike, or that we all come from the same place. The American ideal is that we come from every place, and we are all welcome here.”
On a warm September evening in 1970, my mother, grandfather and grandmother arrived at JFK International Airport in New York. They had made the difficult decision to leave all of their worldly possessions, their home, their farm, their friends and family, all back in Armenia.
My grandfather had family members who lived in Boston. It took several years, but with their help, my mom and grandparents were able to get a Visa to enter the country.
For my mom, who was 17 at the time, Armenia was all she knew. She had never traveled anywhere else before and had to start a new life in America. My grandfather, who grew up in Egypt and my grandmother who grew up in Lebanon, were eager to leave Armenia and start a new life in the US.
My family had experienced so much heartache, economic hardship and suffering in Armenia, which was part of the USSR at the time. My mother shared stories of times when they barely had enough to eat. She told me how they buried her brother when he was just a young boy. My grandpa had the worst memories of his homeland when he realized all that they had lost and vowed to never return.
Arriving in New York was poetic as they flew over the Statue of Liberty. Inside the pedestal which Lady Liberty stands is a bronze plaque featuring the poem "The New Colossus" by Emma Lazarus. The poem's most famous lines are: "Give me your tired, your poor, your huddled masses yearning to breathe free". Unfortunately, life in the United States was not much better for them in the beginning.
After a week on the East Coast, my family made it out to Los Angeles. My grandparents took whatever job they could get a hold of. My mom, who was still a student, would work early in the morning till lunchtime at a restaurant. After the lunch crowd left, she would go to school till 6 pm. Then she would go to her second job at a factory and work till 1 am. She recalls how she would come back to their tiny room where she slept on a coffee table for 6 months. All together, my mom, grandmother and grandfather made $200 a month.
A year later, my father came to the States with the help of his brother, who had been working in Downtown LA as a jeweler. The next day after my dad landed in the US, he went to work with my uncle. A couple of years later, he met my mom and they decided to get married and start a family.
I wanted to share this story because I believe it’s important to realize the positive impact that immigrants make in this country. Immigrants aren't just building new lives in America; they're building America's economy, contributing trillions of dollars annually.
My parent’s journey, much like that of countless others, stands as a powerful testament to this truth. They arrived here, driven by the desire to forge a better life for their loved ones and to contribute to the prosperity of this nation. America was founded as the land of opportunity, intended to embrace individuals from all backgrounds.
Regardless of whether your ancestors arrived on the Mayflower or your family immigrated to the US decades ago, you too are a descendant of an immigrant. Unless you have Native American or Indigenous roots, your family, at some point, journeyed to America.
My family's experience is just one example of the countless ways immigrants have fueled and continue to fuel America's prosperity. Immigrants are a vital engine of the US economy, contributing trillions of dollars through tax payments, consumer spending, entrepreneurship, and filling crucial labor needs. Their financial impact is multifaceted, benefiting the nation's GDP, innovation, and fiscal health.
A comprehensive analysis reveals that in 2022 alone, the nearly 48 million immigrants in the United States generated an estimated $1.6 trillion in economic activity. This immense contribution is a result of their participation in various facets of the American economy.
Tax Contributions: A Significant Influx to Public Coffers
Immigrants, both documented and undocumented, are significant taxpayers, contributing to federal, state, and local revenues that fund essential public services.
Total Tax Contributions: In 2022, immigrants contributed over $579 billion in taxes. This includes federal, state, and local taxes.
Undocumented Immigrant Contributions: Undocumented immigrants alone paid an estimated $96.7 billion in taxes in 2022. This comprised $19.5 billion in federal income taxes and $32.3 billion in federal payroll taxes (Social Security and Medicare). At the state and local level, they contributed $37.3 billion.
Tax Rates: Notably, undocumented immigrants often pay a higher effective state and local tax rate than the top 1% of households in 40 out of 50 states.
Consumer Spending Power: Driving Demand and Economic Growth
Immigrant households wield substantial spending power, fueling demand for goods and services and stimulating economic growth.
In 2022, the spending power of undocumented immigrants was estimated to be over $254 billion. The combined income of undocumented households reached $330 billion.
Entrepreneurship and Innovation: A Catalyst for Job Creation
Immigrants demonstrate a high rate of entrepreneurship, founding businesses at a rate higher than the native-born population. These businesses, ranging from small local enterprises to major corporations, are a significant source of job creation for all Americans.
Immigrants or their children have founded or co-founded nearly two-thirds of "unicorn" companies (start-ups valued at $1 billion or more).
Between 1990 and 2016, immigrants, despite making up only 16% of the US inventor workforce, were responsible for roughly 23% of all patents.
Impact on GDP and Economic Projections
The contributions of immigrants have a demonstrably positive impact on the nation's Gross Domestic Product (GDP).
The CBO projects that increased immigration will boost US GDP by $7 trillion over the next decade.
Conversely, the deportation of millions of undocumented workers could lead to a significant economic contraction, with estimates suggesting a potential reduction in GDP of $1.1 trillion to $1.7 trillion.
The financial contributions of immigrants to the US economy are substantial and wide-ranging. From their significant tax payments and consumer spending to their high rates of entrepreneurship and their vital role in the labor force, immigrants are an indispensable pillar of America's economic prosperity. Now let's delve deeper into the economic contributions of undocumented immigrants in the United States.
Economic Contributions of Undocumented Immigrants
Even without legal status, undocumented immigrants are significant economic contributors. Their participation in the labor market and consumer economy generates substantial revenue and fills critical gaps in the workforce.
Tax Contributions: As previously mentioned, in 2022, undocumented immigrants paid an estimated $96.7 billion in taxes. This included $19.5 billion in federal income taxes and $32.3 billion in federal payroll taxes, which fund Social Security and Medicare. At the state and local level, their contributions amounted to $37.3 billion.
Consumer Spending: In 2022, the spending power of undocumented immigrants was estimated to be over $254 billion. This spending injects money into local economies, supporting businesses and creating jobs.
Filling Labor Gaps: Undocumented immigrants are heavily represented in industries that often face labor shortages, such as agriculture, construction, and hospitality. They make up a significant portion of the workforce in these vital sectors, ensuring their continued operation and helping to keep prices for goods and services down.
Social Security: A One-Way Contribution
A crucial aspect of the economic contribution of undocumented immigrants is their role in funding Social Security.
Paying In, Not Taking Out: Many undocumented immigrants work in the formal economy using an Individual Taxpayer Identification Number (ITIN) or a Social Security number that is not their own. In these cases, payroll taxes, including Social Security and Medicare taxes, are automatically deducted from their paychecks.
No Pathway to Benefits: Despite these contributions, federal law prohibits undocumented immigrants from receiving Social Security benefits. This means they are funding a system from which they will never benefit, effectively subsidizing the retirement and healthcare of American citizens. The Social Security Administration has estimated that undocumented immigrants have contributed trillions of dollars to the Social Security trust fund that they will never be able to claim.
The Economic Consequences of Removal
The removal of the estimated 10.5 million undocumented immigrants from the US would have a significant and detrimental impact on the nation's economy.
GDP Loss: The deportation of millions of undocumented workers would lead to a substantial contraction of the US economy. According to the Center for American Progress, this could result in a $4.7 trillion reduction in US GDP over 10 years.
Labor Shortages and Industry Disruption: Industries that rely heavily on the labor of undocumented immigrants would face immediate and severe labor shortages. This would disrupt supply chains, increase labor costs, and potentially lead to the collapse of some businesses. For example, the agriculture industry would face a critical shortage of workers for planting and harvesting crops.
Reduced Tax Revenue: The loss of tax contributions from undocumented immigrants would create a significant shortfall in federal, state, and local revenues, impacting the funding of public services for all residents.
Lower Economic Growth: The removal of a large segment of the consumer base would lead to a decrease in overall demand, further slowing economic growth.
Common Misconceptions
Lower Crime Rates: Extensive research has consistently shown that undocumented immigrants have lower crime rates than the native-born population. They are less likely to be arrested, convicted, and incarcerated.
Long-time US Residents: A significant portion of undocumented immigrants are not recent arrivals. Many have been living in the United States for a decade or more, establishing deep roots in their communities.
"Well Alex, why don't they just become citizens?" That's a great question, but I wish it were that simple. Unlike my family, who immigrated to the US over 50 years ago, the path to US citizenship has become much more difficult.
For undocumented immigrants in the United States, the journey to lawful permanent residence and ultimately citizenship has become significantly more arduous and, for many, an unattainable dream compared to previous generations. While never a simple process, legislative changes and stricter enforcement have systematically narrowed the avenues for legalization that were available to undocumented individuals in the 1970s and 1980s.
The most profound illustration of this shift lies in the comparison between the era of the Immigration Reform and Control Act of 1986 (IRCA) and the landscape of today.
The 1980s: A Period of Broader Opportunity
In the 1980s, the primary route to legalization for a significant portion of the undocumented population was the landmark Immigration Reform and Control Act of 1986. This act, a product of bipartisan compromise, offered a direct path to a green card for two main groups of undocumented immigrants:
Those with long-term residence: Individuals who could prove they had been living in the U.S. continuously since before January 1, 1982.
Certain agricultural workers: Those who had worked in qualifying agricultural jobs for a specific period.
A path to a green card would have looked something like this:
Application: An individual would have filled out a relatively straightforward application, providing evidence of their continuous residency since 1981. This could include things like rent receipts, utility bills, employment records, and affidavits from community members.
Interview and Basic Requirements: They would have attended an interview with an immigration officer to review their case. They would also have needed to demonstrate a basic understanding of English and U.S. civics.
Temporary Lawful Residence: Upon approval, they would have been granted temporary lawful resident status. This would have provided them with a work permit and protection from deportation.
Permanent Residence (Green Card): After a period of 18 months as a temporary resident, they could apply for permanent residence, provided they had not committed any serious crimes.
For the nearly three million individuals who benefited from IRCA, the process was a direct and achievable one, allowing them to regularize their status and, after the requisite five years as a green card holder, apply for US citizenship.
The Present Day: A Labyrinth of Limited Options
Fast forward to today, and the landscape is starkly different. For an individual in a similar situation, having lived in the US for decades without authorization, there is no general amnesty program. The pathways to a green card are extremely limited and often fraught with legal complexities and long waiting periods.
Today’s potential paths, all of which are highly uncertain, might include:
Marriage to a US Citizen: If an individual were to marry a US citizen, the process is still not straightforward. If they entered the US without inspection, they would likely need to leave the country to complete the green card process. However, their departure could trigger a 10-year bar to reentry due to an "unlawful presence." To overcome this, the US citizen spouse would need to apply for a provisional waiver, a complex and discretionary process requiring proof of "extreme hardship" to the spouse—a high legal standard to meet.
The "Registry" Provision: This is a very old and rarely used provision in immigration law that allows certain individuals who have been in the US since before January 1, 1972, to apply for a green card.
Cancellation of Removal: If they were to be placed in removal (deportation) proceedings, they could potentially apply for a form of relief called "cancellation of removal." However, the requirements are incredibly stringent: they would have to prove ten years of continuous physical presence, good moral character, and that their removal would result in "exceptional and extremely unusual hardship" to a US citizen or lawful permanent resident spouse, parent, or child. This is an even higher standard than the "extreme hardship" for the marriage-based waiver.
The lack of a direct and accessible pathway means living in a constant state of uncertainty, despite their long-term contributions to their communities and the US economy. In essence, the "goalposts" for obtaining legal status have not just been moved; they have been removed from the field of play for the vast majority of the long-term undocumented population.
The broad, inclusive approach of the 1980s has been replaced by a narrow, exclusionary system, making the path to US citizenship for those who have built their lives in the country a significantly harder, and often impossible, journey.
The challenges faced by undocumented immigrants in their pursuit of legal status are undeniably complex, yet the enduring spirit of hope and the potential for positive change remain. As a nation built on the promise of opportunity, America has historically found solutions to seemingly insurmountable problems.
The economic and social benefits of a more inclusive and streamlined immigration system are clear, offering a path to greater prosperity and stronger communities for all. By acknowledging the invaluable contributions of immigrants and working towards comprehensive, humane immigration reform, we can once again align our policies with the values of compassion and opportunity that have long defined the American dream.
Since the day my parents arrived in this country, they started to contribute to help it become the resilient nation that we know today. A future where all residents can fully contribute and thrive is not merely an aspiration, but a tangible goal achievable through collective commitment and a renewed vision for a welcoming nation.
~Alex
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