Immigration_Positive_for_U.S._Companies

Hiring of immigrant by U.S. Companies has been a positive factor for our Economy Team Five [pic] [pic] October 12, 2006 MG 473 ZA Business Policy Table of Contents Introduction……………………………………………………………..…………………………1 Immigration positive factors from 1776 to 1890……………………..…………………………...1 Immigration positive factors from 1890 to 1920………………………………………….………4 Immigration positive factors from 1930 to 1970………………………………………………….6 Immigration positive factors from 1970 to 1990………………………………………………….8 Immigration positive factors from 1990 to 2006…………………………………….…………..10 Conclusion……………………………………………………………………………………….12 Works Cited……………………………………………………………………………………...13 Contribution Page Team 5 Introduction America is a nation of immigrants. In a country that is just over 200 years old, and a continent settled in the early 1600s (originally settled and colonized primarily by the English). We have grown into a great melting pot of many cultures, races, and backgrounds that provides the United States with one of the most ethnically diverse populaces the world has ever known. The effects of legal immigration through the centuries has helped nurture and grow our economy, and provided much of the backbone to what the U.S. is today. 1776 to 1890 The time from the Declaration of Independence up through the booming Industrial Revolution is one of great change, from a largely agrarian society with small cottage industry to an industrial giant primed to become the world leader in the 20th Century. At the time of Independence, the U.S. was made up primarily of English, German, Dutch, and Africans who had been brought over as slaves. It is of note that the largest boom of English immigrants occurred prior to 1660, and after that, the British government officially discouraged immigration to the New World. In 1718, the British Parliament prohibited immigration of skilled workers from the British Isles to the American Colonies. In 1775, with the outbreak of revolutionary violence and from that point forward, only a trickle of British immigrants came to America, compared to the rest of Western Europe (Chao/Spencer, Immigration, 2006). Moving into the 1800s there were three great waves of immigrants that stand out; the Irish, Chinese, and German. The contributions from these large waves of immigrations were to stretch everywhere across our nation, and provide some of the most important foundations to our economy. The Irish started coming in the early 1800s, and in numbers, between 1820 and 1860 always numbered at least a third of all immigrants, and this was even more intense in the 1840 to 1860 period due to the horrible Potato Famine of the 1840s. Altogether about 3.5 million Irishmen entered the U.S. during this period of 1820 to 1860 (Chap/Spencer, Immigration 2006). Most of the Irish arrivals were peasants, poverty-stricken and with not much to offer than the labor off their backs, and that was just what America was looking for during this period. The country was growing by leaps and bounds and there was a desperate need for cheap labor. Some of the most significant accomplishments by predominately Irish laborers were the New York City subway system tunnels, the Brooklyn Bridge, St. Patrick's Cathedral, the great canals (such as Erie), and the westward expansion of the railroad system. The use of Irish labor to build out the railroads helped to have the infrastructure for the growth of our nation westward and to provide a method for commerce to expand. Without the railroad would, Sears & Roebuck would not have been as successful as it was, and the nation would not have grown as fast as it did. Not only that the burgeoning ranks of the Irish provided much of the bulk of public servants such as the police and fire departments in the 1800s (Daniels, 1990). They also made up a predominant amount of the male labor force and by the late 1800s were almost a third of the plumbers, steamfitters, and boilermakers.  While the German emigrants had been coming over since the early 1700s, their numbers accelerated in the 1800s, as modernization of industries and political upheaval and resulting violence swept through the nation. Most of the Germans settled in the countryside in contrast to the Irish who had concentrated in the larger cities, and as farmers, they spread far and wide into the Midwest and Texas. Some of the most prevalent industries that the Germans brought along with their entrepreneurial spirit were bakeries, butchers, cabinetmakers, cigar makers, distillers, machinists, and tailors. The Germans were not known to labor in much of the large factories, but were highly sought after as bakers, domestic workers, hotelkeepers, janitors, laundry workers, nurses, peddlers, saloonkeepers, and tailors (Chao/Spencer, Immigration, 2006). There was also a good amount of German Jews that immigrated in this period, which led to establishment of large amounts of financial institutions, mostly concentrated in the Northeast and New York City. In contrast to the large waves of European immigrants with the Irish and Germans, there was the large wave of Chinese immigrants that was mainly on the West Coast. In fact, they were the first Asian immigrants to reach our shores and their numbers intensified with the California Gold Rush; their use by the Railroad system that was being built eastward. Many of the early Chinese immigrants were wealthy, successful merchant, skilled artisans, angler, and hotel and restaurant owners, but the predominant image is of the large group of coolies, or unskilled laborers, who worked for very little pay and immigrated mostly in the mid-1800s. The Chinese took many of the lower paying and dirty jobs no one wanted. They were instrumental in helping to build the Railroad system on the West Coast and meeting up with the westward bound railroad in 1869 at Promontory Point in Utah. In fact joint Irish and Chinese work gangs completed the last ten miles of this railroad. One sad point that is despite their large contribution to the railroad there are no Chinese workers in the famous photo of the meeting of the rails. On the other hand, there were more problems with the Chinese immigrants versus the Irish or Germans. Chinese encountered prejudice from Americans, which lead to laws such as the Chinese Exclusion Act of 1882. This law being passed led to a highly imbalanced male to female ratio (19 to 1 in the 1860s, to 27 to 1 by 1890) and as a result many immigrants returned to China toward the late 1800s (Chao/Spencer, Immigration, 2006). The large impact that they made on the labor force during this period had a very large impact on the expansion of the U.S. Economy By the time these large waves subsided, the U.S. had grown in leaps and bounds, with an expansion of rail lines all across the nation, and the Industrial Revolution was in full swing. The labor and entrepreneurial spirit of the Irish, German, and Chinese immigrants provided significant positive contributions to the U.S. economy. 1890 to 1920 This time is marked by two major changes that shaped the American history; post Industrial Revolution and pre World War I. By the end of this period, America had grown by an additional 15 million. Most came from Russia, Hungary, Poland, Italy, and Greece. The majority was either Catholic, Jewish or Eastern Orthodox (Kohler, 2006). The Industrial Revolution meant a boom in manufacturing, transportation, and food production. The constant wave of immigration helped fuel the industrial boom by providing this era of constant change and growth with an unlimited supply of cheap labor. Women and children made up a large percentage of the work force. Due to the strong labor demand, “20% of the nations children between the ages of ten and fourteen were employed in factories or farms” (Kohler, 2006). By 1890, the transcontinental railroad system had penetrated to most regions of the U.S., primarily due to the Irish and the Chinese immigrants. The railway connected the Agricultural West to the Industrial East, carrying produce, livestock and packaged meat among others. It also accelerated industrialization, which “spurred other industries such as iron, steel, coal, and tourism” (Kohler, 2006). Thanks to the industrial boom, by 1890 there was a gradual movement from the Agricultural West to the Industrial East. Two decades later, with one-half of the U.S. population living in cities in the northeastern part of the country, certain improvements to the cities had to be made. For instance, fire departments and city parks were created and improvements were made in the quality of the drinking water and transportation (Kohler, 2006). With the growth and improvement of the cities came the rise of big businesses. Certain technological innovations became popular, such as the Samuel B. Morse’s invention of the telegraph and Thomas Edison’s invention of the incandescent light bulb. The Industrial East, a “relative stable cultural hierarchy of power between owners, managers, industrial workers and unskilled labor was being established” (Ballantyne, 2002). The construction of the railroads changed the environment of the Agricultural West. Around the 1900’s, the corporate structure, perfected in the East, took over the cattle industry of the West. Coy boys became wage earning ranch hands and the white farmers who were originally homesteaders soon became commercial farmers producing food and grain for an international market. By the turn of the century, the West was just another part of the global economy of capitalism (Kohler, 2006). Until World War I, immigration had generally increased in volume annually. From 1905 until World War I, an average of more than 1,000,000 immigrants a year came to the U.S., according to Walt Whitman, a student from Bergen County Academics. With the outbreak of World War I, those numbers decreased to about a quarter of a million per year. He went on to say that “in 1918, the numbers showed a small rise, but soon fell in response to a changing situation in Europe, as well as new legislation that was placing a cap on immigration.” 1930 to 1970 The restrictive legislation of the 1920s and the Great Depression virtually cut off immigration in the period leading up to World War II. By 1942, nothing was definite. The brutal battles between the rival factions remained bloodier than ever. The U.S. instituted an enormous rearmament program; which materially consumed the country’s entire manual labor force. For the size of the war production, the U.S. utilized all of its available resources. Men and women of all ages worked day and night in factories. In this context of conflict of war, in which the destiny of humanity was at stake, is when the Mexican laborers made their appearance. On August 4, 1942, the government of the U.S. and Mexico signed a treaty for the recruitment and employment of Mexican citizens in order to alleviate the shortages of manual labor in the agricultural fields and to help maintain the American railways. The Bracero Program is one of the most significant contributions to the growth of the agricultural economy. More than 4 million Mexican farm laborers came to work the fields of this nation. The braceros converted the agricultural fields of America into the most productive in the planet. The majority of the braceros were experienced farm laborers who came from places such as “la Comarca Lagunera,” Coahuila, and other important agricultural regions of Mexico. They stopped working their land and growing food for their families with the illusion that they would be able to earn a vast amount of money. Independent farmers associations and the “Farm Bureau” controlled the bracero contracts. The contracts were in English and the braceros would sign them without understanding their full rights and the conditions of employment. Despite their enormous contribution to the American economy, the braceros suffered harassment and oppression from extremist groups and racist authorities. In 1950, Puerto Ricans provided a work force of seasonal employees at the close of World War II. Most of the workers returned to Puerto Rico in the off-season, but a few remained in the states and began working at factories in various cities. With the U.S. victory over Spain in the early 1900’s, Puerto Rico became a possession of the U.S., making it easier for Puerto Ricans to come to the mainland. Under the provisions of the Jones Act of 1907, Puerto Ricans officially became citizens of the U.S. One source of the positive employment effects of immigration is the retention of industries that would otherwise have moved overseas. If no Mexican immigration to Los Angeles County had occurred between 1970 and 1980, for example, 53,000 production jobs, 12,000 high paying non-production jobs and 25,000 jobs in related industries would have been lost (Muller and Espenshade, 1985). Immigrants generate significantly more in taxes paid than they cost in services received. Average household incomes of legal and refugee immigrant household rise with time in the U.S. and surpass those of natives after ten years in this country. Another source of job creation is the entrepreneurial activities of immigrants themselves. Self-employment, as defined by the census, covers a wide range of possibilities – from a businessperson or professional practitioner to a domestic worker, casual laborer, or someone who drives a cab. Evidence points to the self-employed as among the most economically successful of all immigrants. Average incomes for self-employed immigrants (slightly over $30,000 a year, according to the 1990 census) exceed those of all other classes of immigrant workers by a substantial amount and are about the same as the average incomes of native entrepreneurs (Portes and Rumbaut, 1990). 1970 to 1990 Since the early 1900’s, there has been a definite change in the immigrants entering the U.S. Early in the 19th century, the majority of people entering the U.S. came from Europe. Now the majority of immigrants are coming from Mexico, Cuba, and Asia. They are arriving for various reasons but the main reason is poverty and unemployment in their homelands. They come to the land of opportunity because they can find work and feed their families. Statistics show that in 1990, approximately 1,536,500 legal immigrants entered the U.S., in 2000, the number was approximately 850,000 (Worldbook, 2006). This number appears low and many speculate that many others are crossing the border illegally. Once in the U.S. immigrants assimilate quickly and contribute to the culture and economy. Diversity is one aspect that makes America such an interesting place to live and the wealth of cultures in our country is broad. In 1970, about 373,300 legal immigrants were admitted to the U.S. (Worldbook, 2006). Many of the immigrants were from Vietnam. After the Vietnam War, the U.S. government allowed many refugees into our country and many were educated, urban professionals. Some were closely associated with American interests during the war so the move to the U.S. was somewhat familiar for them. Two more waves of Vietnamese followed and many of these immigrants had found the U.S. to be paradise compared to the harsh lives they were living post Vietnam War. Once here they picked up where they left off as merchants, farmers, and blue-collar workers in mainly the western region of the U.S. In 1980, approximately 530,000 legal immigrants entered the U.S. (Worldbook, 2006). As in the 1970, many of the people entering were from Asian countries. Besides Asian immigrants, there was a large concentration of people entering from Mexico. There is a belief among some American’s that Mexican immigrants are taking American jobs. Some may say that Mexican immigrants take jobs that Americans do not want, but a more sensible statement is that Mexican immigrants take jobs that Americans do not want at the going wage (Harvard, 2000). Immigrants add value to our economy and they are not usually paid as much as the value they add. Businesses gain the surplus and have positions filled that would not be filled by higher waged demanding Americans. This in turn provides employment for other people in these business sectors. From 1980 to 1990 the number of legal immigrants entering the U.S. tripled to approximately 1,536,000 (Worldbook, 2006). The U.S. had not seen an immigration wave this high since the early 1900’s. The vast majority of those entering the U.S. were of Mexican descent. These available workers provided a boost to our economy by providing available workers to fill mostly blue-collar positions. Research shows immigrants have revitalized cities that would have otherwise lost population (USA Today, 2004). There is not a huge supply of people to fill these positions so employment would not have grown in the 1990 as it did without these people. Another benefit of immigration is Social Security. Since most of the immigrants entering the U.S. from Mexico are young, they will help offset the rapidly aging native population that will be retiring in the near future. Recently, over 500 economists signed a letter for President Bush reminding him of the benefits of immigration. The Open Letter of Immigration reminded President Bush and Congress of the overall economic and social benefits of immigration, and the power of immigration to lift the poor out of poverty (Independent, 2006). The letter enforces how immigration is the greatest anti-poverty tool there is and it is a net gain to Americans in general. It also attracts industries, which would not be able to fill low wage positions, and provides available workers. Without such workers, these industries would move offshore to find low wage laborers. Since immigrants fill many of the low wage positions, U.S. natives can fill the jobs that have been created and often reap the benefits of higher wages. 1990 to 2006 In the last decade, the role of immigration has become increasingly important and gradually more political. As the native U.S., population has declined the “immigrant workers have filled in, providing half of the growth in the U.S. labor force since 1990” (Immigration, 1, 2006). Because growth in the economy relies on the amount of available workforce, it is easy to see that immigration has not only been positive for the economic growth of America, but will need to continue in order to fill the workforce being vacated by the baby boomers (Immigration, 2006). Immigrants fill not only unskilled and technical jobs such as “constructions, restaurants, hotels, nursing and homecare,” but they also fill skilled positions such as scientists, engineers and a number of other professional occupations (Immigration, 2006). It is the latter fields in which the U.S. higher education system has failed to produce sufficient numbers of students to allow a continued excellence on the international level (Immigration, 2006). Immigration has allowed the American industry to have a reliable workforce and to maintain low prices. A current study showed that immigrants “make up 14.7 percent of the nation’s total workforce” (Hensley, 2006). Research has shown that “immigration adds $10 billion a year to the economy” and strengthens average working wages (Sperling, 2006). This alone shows that the U.S. economy would be greatly affected if immigration were to continue to slow. It is easy to see “that the money the immigrants pump back into the economy and their value as workers outweigh any negative effect” (Hensley, 2006). After September 11, 2001, the number of legal immigrants decreased. This was in reaction to the attacks, which caused the U.S. to heighten security and initiate a lengthier visa process. After the attacks, the economy slowed and went into a reactionary mode. This, along with an increase in the number of illegal immigrants brought the immigration debate to light the U.S. in 2005. At the height of the debate, both legal and undocumented immigrants from “Central and South America” chose not to work or attend school on May 1, 2006 (Vesna, 2006). This was “dubbed “A Day without an Immigrant” (Vesna, 2006). This was a way to show American’s the importance of immigration to the U.S. Immigrants are coming to America “to work and to build better lives for themselves, and their families” (Hensley, 2006). Immigration has allowed Americans to maintain low prices and work jobs that some would consider being less desirable. Between 1990 and the present immigration has seen times of great growth and a backlash that nearly shut the borders. Through all of this, immigrants have found their voice and have chosen to show the American public the importance of their daily work. The economic impact of immigrants on the U.S. will continue to be affected by the policies that lawmakers enact. Conclusion From the establishment of our nation to the current day, the United States has and continues to be the most immigrated to nation in the world. America is a nation of immigrants. In a country that is just over 200 years old, and a continent settled in the early 1600s (originally settled and colonized primarily by the English), we have grown into a great melting pot of many cultures, races, and backgrounds that provides the U.S with one of the most ethnically diverse populaces the world has ever known.  The effects of legal immigration through the centuries has helped nurture and grow our economy, and provided much of the backbone to what the U.S is today. A prevalent theme is that these waves of immigration provided the injections of cheap labor to grow industries and the economies at fortuitous times, and helped propel America to the richest nation the world has ever known. Immigrants founded this nation hundreds of years ago, made significant contributions throughout our history, and continue to make significant impacts as they arrive on our shores. Works Cited 500-Plus Economists Sign Open Letter Reminding President Bush of the Benefits of Immigration. 19 Jun. 2006. The Independent Institute. Retrieved Sept. 9, 2006 from http://www.independent.org/newsroom/news_detail.asp'newsID=74 Ballantyne, Paul F. “American Schooling, Administrative Reform, and individual Ability Testing: Assimilation and sorting before World War I.” Online. Retrieved Sept. 10, 2006 from http://www.comnet.ca/~pballan/C3P1.htm Borjas, George J. “Mexico’s One-Way Remedy.” Harvard University Website. 18 Jul 2000. Retrieved Sept. 9, 2006 http://www.ksg.harvard.edu/news/opeds/2000/borjas_mexico_nyt.htm Carter, Pat. “Immigration: A Fiscal Boom of Financial Stran'” USA Today. 22 Jan. 2004. Retrieved Sept. 9, 2006 from http://www.usatoday.com/money/economy/2004-01-22-immigration_x.htm Chao, Adam and Spencer Dan. “Immigration: The living mosaic of people, culture & hope.” Online. Retrieved Sept. 15, 2006 from http://library.thinkquest.org/20619/index.html Daniels, Roger. “Coming to America: A History of Immigration and Ethnicity in American Life.” Princeton: Harper Collins, 1990 Hensley, Laura. “Immigrants out to prove contribution to economy.” Knight Ridder Tribune Business News. 30 Apr. 2006. ABI/INFORM Dateline. ProQuest. William Allen White Library, Emporia, Kansas. 1 Sept. 2006 http://www.proquest.com “Immigrant Drive Economic Growth.” The Washington Times. 1 May 2006. LexisNexis Academic. William Allen White Library, Emporia, Kansas. 8 Sept. 2006. Jaksic, Vesna. “Immigrants step up protest.” Knight Ridder Tribune Business News. 30 Apr. 2006. ABI/INFORM Dateline. ProQuest. William Allen White Library, Emporia, Kansas. 9 Sept. 2006 Kohler, John. “Chapter 17 Study Guide.” Rev. of American Passages, a History of the United States, 2nd edition. By Edward L. Ayers. Belmont, California: Thomson Wadsworth, 2005. Online. Retrieved Sept. 10, 2006 from http://a-s.clayton.edu/jkohler/Chapter17 The Triumph of Industrial Capitalism.htm Muller, Thomas and Espenshade, Thomas J. The Fourth Wave. Washington, D.C.: The Urban Institute Press. 1985 Portes, Alejandro and Rumbaut, Ruben G. Immigrant America: A Portrait. Berkley: University Of California Press. 1990 Sperling, Gene. “Let’s Do Immigration Right: [1].” Fortune. 1 May 2006: 53. ABI/INFORM Global. ProQuest. William Allen White Library, Emporia, Kansas. 9 Sept. 2006 http://www.proquest.com Whitman, Walt. “The American Immigration Home Page.” Online. Retrieved Sept. 12, 2006 from http://www.berge.org/AAST/Projects/Immigration/waves_of_immigration.html World FactBook Website (2006). Facts About Immigration. Retrieved Sept. 9, 2006 from http://www.worldbookonline.com.www.whitelib.emporia.edu/wb/PrintArticle'id=ar273120&ss=h2&ed=na