Vice President J.D. Vance recently attributed stagnation in GDP per capita and productivity to an influx of low-wage immigrants. In a bold tweet, he stated, “Western societies keep running the experiment of importing millions of low wage immigrants and expecting it to boost per capita productivity or GDP, and they keep failing.” He proposed it’s time for a new approach to immigration.
In response, Alex Nowrasteh of the Cato Institute challenged Vance’s assertions, asserting that GDP per capita has been on the rise alongside an increase in the immigrant population. “GDP per capita has risen even as the U.S. immigrant population has increased,” he highlighted in his rebuttal.
Supporting his argument, Nowrasteh provided two informative charts. The first, sourced from Federal Reserve Economic Data, illustrates a steady growth trend in real GDP per capita since records began in 1947. Although there have been fluctuations, mainly during economic downturns, real GDP per capita has not seen a decline that persisted for more than five consecutive quarters, with the longest period of decrease observed during the Great Recession from 2008 to 2009.
Vice President J.D. Vance claimed that low-wage immigration has not bolstered GDP or productivity, advocating for a new immigration approach. In response, Alex Nowrasteh from the Cato Institute noted that GDP per capita has actually increased with immigration, emphasizing a steady growth trend since 1947, despite brief recessions.
In summary, Vice President J.D. Vance’s claims regarding the negative impact of low-wage immigration on economic growth have been contested by economic experts. Key indicators like GDP per capita have shown resilience and even growth amidst rising immigration. As this dialogue unfolds, it becomes evident that immigration’s role in the economy remains a critical topic deserving of continued exploration and understanding.
Original Source: thedispatch.com
