U.S may lose its largest economy status to China without new immigrants
A study conducted by an immigration advocacy group founded by tech industry leaders, has revealed that the U.S will lose its status as World’s largest economy to China by the end of the decade if it reduces accepting immigrant employees to the country.
The study done by FWD.us shows that the American economy will be three-quarters the size of China’s by 2050 if it does not lure more efficient workforce to the country. FWD.us, an immigration advocacy group founded by tech industry leaders, conducted the study in conjunction with George Mason University.
“Immigration has basically become the fulcrum of nativist and nationalist politics, which is really about a concern for putting America first,” said Justin Gest, the study’s co-author and associate professor at George Mason University, a Bloomberg report said. “If you look at the numbers here, the best way that we can put America first is by welcoming newcomers.”
According to the Bloomberg, the report argues that without more immigrants, the U.S. population will become older in the coming years as the number of elderly rises at a faster rate than working-age adults. The expense of entitlements for those older Americans, such as Social Security and Medicare, risks outpacing taxes paid by younger workers.
The report says that while higher levels of immigration alone would not ensure solvency for the Social Security trust fund, it would help delay its depletion, now anticipated in 2034, by a year or more depending on how many more visas are issued annually.
If legal immigration levels were doubled, an estimated 31 seniors would live in the U.S. in 2050 for every 100 working-age people compared to 37 under current immigration levels, the study shows. Under that scenario, U.S. gross domestic product is projected to rise to $46.8 trillion in 2050 compared to $49.9 trillion for China. China’s economy wouldn’t overtake the U.S. until closer to 2035.
Groups that favor lower levels of immigration argue that granting a pathway to citizenship to immigrants already here illegally, as Biden’s plan does, would strain programs like Social Security and Medicare by making those immigrants eligible for benefits.