STUDY: Mass Migration Hurting, Not Helping, Western Economies

A new study released last month by the Center for Policy Studies (CPS) is challenging the left-wing narrative that immigration, including illegal immigration, is by default a net positive for economic growth. The study analyzed the results of mass migration into the United Kingdom and found that it was causing intense “pressure on housing, public services, and infrastructure” while failing to deliver the promised economic benefits.

In 2022, the United Kingdom experienced its largest immigration spike in decades. That year, net immigration exceeded 745,000, and has remained high since. In London, a city of nearly nine million, less than 40 percent of residents are now ethnically British.

Along with legal immigration, illegal immigration has also become a growing problem for the U.K. despite the fact that it is an island nation. Tens of thousands of migrants have illegally crossed the English Channel and entered Britain, despite attempts by Prime Minister Rishi Sunak’s government to crack down on the illegal entries.

As mass migration, legal and illegal, continued to place pressure on Britain’s economy and public services, migration advocates reassured English citizens that the immigration increase would be a net positive for the U.K., boosting growth and diversity across the country.

But CPS’s report reveals that the record immigration has actually hobbled economic opportunity and is placing an unsustainable strain on public resources.

The study specifically finds that “89% of the 1.34 million rise in England’s housing deficit over the last decade has been due to net migration.” It also notes that the majority of private homes in London are rented out to “individuals born overseas,” and 33% of all social housing placements now go to foreign-born individuals.

As EuroNews reported, the study concludes that “large-scale migration has not delivered the economic benefits its defenders argue it should – with the era of mass migration coinciding with a significant slowdown in GDP per capita growth.”

Anecdotal evidence suggests that Britain is not alone in experiencing difficulties as a result of unchecked migration. Economic growth has lagged throughout Europe as migrant arrivals have continued to surge. Moreover, conservative parties and politicians with a tougher stance on immigration have seen a resurgence amid frustration from voters over the large numbers of migrants flooding in.

The unintended consequences of mass migration in Europe serve as a klaxon for America, which is currently in the midst of an unprecedented illegal immigration crisis. At least 7.2 million individuals have crossed the border illegally since Joe Biden took office, many of whom are enjoying taxpayer-funded resources, including cell phones, luxury hotels, and free airline travel.

In an April speech, International Monetary Fund (IMF) Managing Director Kristalina Georgieva made a somewhat puzzling case for how this mass illegal immigration is a positive for the U.S. economy despite obvious evidence to the contrary and what has happened in the U.K.

Specifically, Georgieva pointed to a supposed “force of innovation” as a result of mass illegal immigration. She claimed that because “It’s easier to turn innovative ideas into business development” in the U.S. than in Europe, illegal immigration will be a net positive for the United States.

While it is true that being an entrepreneur in America is easier than in most countries, the majority of new arrivals appear to be relying on public dollars more than they’re innovating. According to the Center for immigration Studies, in 2022, “54 percent of households headed by immigrants — naturalized citizens, legal residents, and illegal immigrants — used one or more major welfare programs” –significantly higher than the percentage for U.S.-born residents. Moreover, this figure is also likely an undercount of welfare recipients, as many illegal aliens who benefit from welfare programs are unaccounted for due to “sanctuary city” policies.

Georgieva also argued that the surge in illegal border crossings has made the United States stronger because it represents “abundant labor” for the U.S. economy. “Wages are not pushing up because there is no strong pressure because of lack of labor,” she said.

In other words, illegal immigration is good because it provides cheap labor for corporations.

But what Georgieva and other proponents of mass migration never say is that this “cheap labor” comes at the expense of native-born Americans who are being undercut by illegal aliens. While corporate profits might go up, everyday workers and families struggle. Unsurprisingly, as illegal border crossings have skyrocketed, year-over-year growth in average hourly earnings has now eased to 4.1 percent from 5.9 percent two years ago.

The left has long asserted that immigration, legal or illegal, always benefits America. Yet data from throughout the West points to at best mixed results and at worst precisely the opposite conclusion.

To be sure, America has always been a nation welcoming to immigrants who come here legally to achieve the American Dream. A secure border and controlled immigration policy that identifies those most likely to contribute to their communities continues to be a vital part of America’s identity.

But uncontrolled mass illegal immigration of low-skilled workers with unfettered access to government welfare programs is obviously calamitous for any economy, no matter what the so-called “experts” say.

Andrew Shirley is a veteran speechwriter and AMAC Newsline columnist. His commentary can be found on X at @AA_Shirley.