Consider immigration into the US and remittances sent home - Essay Example

Immigrants in United affiliation Immigrants in United Who should the US try to attract immigrants and why? United State has a comparative advantage since it is capital intensive. The economy is endowed with capital and therefore produces capital-intensive commodities. There is a low level of labor in the economy that hinders it to attain its economic potentials. In this perspective, the economy needs to attract skilled workers, especially from African nation to work on the excessive capital in the economy (Gylfason, 2009, p. 77). What recent immigrants are vital to our economy?

Highly skilled immigrants are vital to the united state economy. These immigrants provide significant inputs into the economy since they apply their competence and skills that helps to improve the economic outputs thereby increasing economic growth. On the other hand, entrepreneurs make the use of unexploited economic potential in the country, thereby increasing employment opportunities and bring in additional revenues in the region.Do we need more low-end workers? Do we need more high-end professionals?

United State is a high-income economy and therefore it attracts highly professional workers. The economy does not need low-end worker, but rather high-end professionals. What about the people that are already here illegally – what should the US government do?The immigrants who are in the united state illegally increased competition in the labor market. This community offers a threat to the economy since the competition reduces the employment opportunities for Inuit communities. The national government should therefore strive to reduce the community that is illegally in the region.

Why are remittances sometimes more effective than foreign aid?Remittances are funds that a foreign individual sends to home country, mainly to their families. In this perspective, remittance is very effective in the economy since the remittance funds are earned by foreign individuals, therefore adding value to the economy (Gylfason, 2009, p. 109). On the other hand, these funds are tax deductible and therefore provide the government with revenue through taxes. However, foreign aids are tax-free and have no economic value to the host country.

How can minimum wage workers afford to send money home?A minimum wage worker can earn and afford to send the remaining homes. They can achieve this through saving in either home bank or national banks. This therefore helps them to accumulate more funds. ReferenceGylfason, T. (2009). Immigrants and economic implications Oxford: Oxford University Press.