LOS ANGELES – A UCLA study published Monday found that the exclusion of undocumented residents and their families from the $1,200 given to taxpayers as a result of the COVID-19 pandemic resulted in an estimated loss of $10 billion in potential economic output.
The study, Essential Undocumented Workers But Disposable Mixed-Status Families: Modeling COVID-19 Economic Impacts and Government Relief Policies by Race and Immigration Status in Los Angeles County and the United States, focuses on the impacts of excluding undocumented immigrants from COVID-19 economic relief packages.
It found that the economic benefits outweigh the costs and undocumented workers are essential to the U.S. and California economies.
Research showed that undocumented workers and their families contributed more than $1.6 trillion to the nation’s gross domestic product in 2018 through their shopping and workforce activities, and “their reduced purchasing power amid a looming recession is both a public health and economic crisis,” according to the report by lead author Raul Hinojosa.
“Our undocumented neighbors buy groceries, pay taxes and support local businesses in economic activity that generates $190 billion in government revenue nationwide,” explained Hinojosa, who is a UCLA professor of Chicano studies and the executive director of the North American Integration and Development Center. “It is cruel to deny undocumented residents financial assistance as unemployment rates skyrocket, but it’s also counterproductive fiscal policy that has negative consequences for all Americans who benefit from their economic contributions.”
Besides the loss of $10 billion in potential economic output from not including undocumented workers in the stimulus payouts, Hinojosa and his colleagues estimated that the action cost roughly 82,000 jobs nationally and 17,000 jobs in California. The national unemployment rate for undocumented workers reached 29% in May.
“Undocumented workers have suffered disproportionate health and economic impacts during this global health crisis that we are just beginning to understand yet they are being excluded from critical policy relief discussions and we need to address this through a comprehensive approach to economic recovery,” said Abel Valenzuela, director of the Institute for Research on Labor and Employment and a member of the study’s research team.
The economic activity generated by undocumented immigrants spending the tax credits they would receive under the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, currently being debated in Congress, would support 112,000 jobs nationally and produce $14 billion in economic output. These benefits exceed the $9.5 billion price tag them in recovery efforts.
The study found that:
— Undocumented workers contribute $1 trillion to the country’s gross domestic product and more than $263 billion to California’s GDP. Mixed-status families — households with at least one undocumented immigrant and U.S. citizens — produce $1.67 trillion in national GDP and $425 billion to the state’s GDP. They are deeply embedded in the US economy.
— Undocumented workers generate economic activity that supports almost 20 million jobs in the country and 3.2 million jobs in California.
— They generate $190 billion in government revenue nationally and $63 billion in California, and their unemployment rates and total wages have been particularly impacted by the economic effects of the pandemic.
— The unemployment rate for undocumented workers reached over 29% in the United States and more than 27% in California, the highest of any demographic group.
— The total wage bill for undocumented workers fell by almost 25% across the country and by more than 18% in California. Including undocumented workers and their families in relief and stimulus bills would lessen the economic damage, support recovery, and benefit all Americans.
— Extending the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, to undocumented taxpayers and their families would have added over $10 billion to the U.S. economy creating enough economic activity to support over 82,000 jobs nationally and 17,000 in California.
— Providing undocumented workers with tax credits under the HEROES Act would add almost $14 billion to the economy and would support over 112,000 jobs nationally.
— And the economic benefits of providing relief to undocumented workers would outweigh the costs and would generate more government revenue than the total cost of the tax credits.
The study was a collaboration among the UCLA Latino Policy and Politics Initiative, the UCLA North American Integration and Development Center and the UCLA Institute for Research on Labor and Employment.
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Tt says
Good they’re not real citizens they don’t deserve the benefits and they aren’t essential they are just rats who are willing to undercut others and do half assed work in everything. No attempt to assimilate in the slightest they just want to make everything like their broken, ghettos back home.
Alexis says
Well, after reading this article and many others about their contributions, we need them. Americans don’t want to work hard manual labor, and this is why they are hired by politicians, corporate farms, etc.. Even Donald Trump turns a blind eye to undocumented workers hired for his business’s.
Alby says
Wouldn’t it be great to reap benefits in mexico the same way they do over here. Can I speak english over there till they go crazy? Can I crap out anchor babies over there so when they grow up they can be cholos running mexican streets. Can I impose my American antics over there and sue a rich mexican if they discriminate me? Too bad they cant make mexico great again. They want this. They want that. Ultimately they want to be in your shoes, caress your wife, live your life, chew you up and then spit you out and say, “meh, that was alright. Lets migrate to Canada now.” They are not as poor and unfortunate as they make themselve out to be. They have a problem with safe sex and being responsible for who they bring into this world. And those that are responsible enough thinks they deserve recognition and praise for doing what they are supposed to do. Keep illegals in their own country. Hold mexico responsible for providing work and welfare to there people. They screw eachother over there enough as it is. Border Security! Americans first!
Alexis says
They absolutely are essential.
burn, loot and nurder says
White people owe everything they have and all their privilege to illegals, blacks, and transgender people of color. This country would not have been built without us, so you owe us and we want reparations.
Burning, looting and murdering (BLM) are our right because of your racism and privilege, so shut up and take it, before we get mad and take it all.
Chicano Studies Professor says
They can always go back to their countries of origin.
Kiki says
You can think what u like but let me tell you that if they all did go back to their place of origin you wouldn’t have a nice house to live in and your 5 portions of fruits and veggies
So go ahead just talk out of your you know what.
Laughing says
They are often more resilient than us lazy Americans.
Figuring out ways to make money through working hard.
Well the honest ones, which is the majority.