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David Stanley Ford

Undocumented workers aid economy, study claims
Undocumented workers aid economy, study claims

By Devona Walker    Comments Comment on this article12
Published: July 8, 2008

A recent study conducted by the Waco, Texas-based Perryman Group shows Oklahoma would lose $1.8 billion in spending and nearly 13,400 jobs if undocumented workers were removed.

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Oklahoma ranked 13 among states most heavily impacted by undocumented workers. Consumer spending nationwide is estimated to decline by $1.7 trillion without undocumented workers, and there would be an estimated loss of about 8.1 million jobs.

"The undocumented work force is vital to U.S. business growth and prosperity and in some cases sustainability and thus an enforcement-only and removal approach is simply not viable,” said Ray Perrryman, a financial analyst and president of the Perryman Group.

"It eliminates a huge part of our work force without looking at our work force needs or offering any alternate solutions. If you put a program in place with nothing but building walls and penalizing business, it's going to disrupt the economy.”

In Texas, Perryman said there are about 450,000 unemployed people but 1.2 million undocumented workers.

Consequently, it is not logical that, even if every available worker in Texas was gainfully employed, the state could absorb the loss of undocumented workers.

"And a lot of those domestic workers don't have the skills to do construction or the stamina for agriculture, not to mention they are not located where the jobs are,” Perryman said.

Perryman conceded that while undocumented workers create economic positives for the federal government, many business and ultimate savings for consumers, local governments receive the short end of the stick. Local governments must bear the burden of increased spending on public education and safety, he said.

On one end, undocumented workers pay into programs like Social Security and Medicare even though they are not legally entitled to participate. In fact the Social Security Administration rakes in more than $7 billion annually into its suspense fund — largely made up of contributions from undocumented people working under fraudulent Social Security numbers.

"The federal government sees big profits but where the losses are occurring is for local governments. The money does not go to where it is needed,” Perryman said.

Cost-benefit disconnect
Illegal immigration foes say this analysis is less economic theory than mere eye balling. It does not take the effect undocumented workers have on low-skilled, native-born workers. The Center for Immigration Studies estimates undocumented workers pay about $16 billion per year in various taxes, but they create a tax burden of about $22 billion.

"There is no question that the U.S. economy is significantly larger in size because of immigrations, illegal and otherwise,” said Steven Camarota, the center's director of research. "But that does not in anyway tell us if the native-born population is any better off.”

Immigrants, according to CIS research, have suppressed low-skilled wages by 10 percent in the last two decades.

When looking specifically at men without high school diplomas, that number balloons to about 22 percent. For men with high school diplomas, the effect is about 11 percent.

"Is that really fair? Is that good policy? Is that really what you want? Clearly it's good for the immigrants and in the short-term and for some sectors it's good for business and consumers,” Camarota said, adding those short-term benefits pale in comparison to the burden on taxpayers in the United States.

"The idea that the key to economic success in the U.S. is to dramatically increase the supply of high school dropouts does not make sense. It's problematic. It reduces wages for our own poor. It creates a large cost to our taxpayers. In addition, it retards economic mechanization,” Camarota said.

"You can't just say that all that matters is willing workers and willing employers. There is just so much more to it than that.”

"The undocumented work force is vital to U.S. business growth and prosperity and in some cases

sustainability and thus an

enforcement-only and removal

approach is simply not viable.”

Ray Perrryman financial analyst and president of the Perryman Group

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David Stanley Ford





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wonder how much the state would save if it didnt give welfare and food stamps to anchor babies and pay for the schooling of the illegals children and least not forget the free emergency room doctors and the jobs for Americans at a decent wage, this study is othing but bogus BS
James, Myrtle Beach - Jul 9, 2008 at 9:57 am
What?! You mean what's good for the Gaylord mafia may not be in the best interest for regular working stiffs?
Kevin, Oklahoma City - Jul 8, 2008 at 7:53 pm
don't just blame the traitor to oklahoman citizens, she works for another by the name of kelly. they are desperately trying to pave a road for the criminals so their advertisers keep spending the money while keeping up the "slave" labor trade. it would be so good if we could have a state wide vote in which no one can file any law suites afterwards with the winner being the true citizens of this state and not the criminals being supported by the chamber and the unoklahoman.
richard, oklahoma city - Jul 8, 2008 at 7:17 pm
bryan, i agree that i have noticed a tone in some of walker's articles.
Renee, edmond - Jul 8, 2008 at 2:14 pm
...but just try to find a roofer thats Caucasion anymore! Sure, the guy that comes to give you a bid would likely be white, but who actually does the work?
Kevin, Oklahoma City - Jul 8, 2008 at 1:30 pm
Renee, Ms. Walker has almost exclusively written articles extremely slanted towards illegal immigrants. The articles range from destroying families to economic downfalls. By simply reading her articles in the past, you know exactly what her tone will be on any article she writes. Personally, I don’t condone the vehemence against her, but I strongly disagree with her opinions on the subject.
Bryan, Oklahoma City - Jul 8, 2008 at 11:59 am
why all the hate towards the writer? i'm all about cracking down on illegal workers and those who employ them, but i also realize a reporter doesn't always pick what they write about. be mad at the message not the messenger.
as far as this study goes: duh! of course undocumented workers aid the economy by spending, still doesn't make it right. like ray said, drug smugglers do the same thing on some level. still wrong.
Renee, edmond - Jul 8, 2008 at 9:56 am
To her credit this is one of the few articles on the subject that at least made an attempt to give the other side of the story (the last few paragraphs).
Larry, Oklahoma City - Jul 8, 2008 at 9:40 am
"The federal government sees big profits but where the losses are occurring is for local governments. The money does not go to where it is needed,” FALSE it doesn't "go" anywhere, the sentence before said "more than $7 billion annually into its suspense fund".
Larry, Oklahoma City - Jul 8, 2008 at 9:36 am
"and there would be an estimated loss of about 8.1 million jobs." FALSE those "lost" jobs would be going to Americans or legal immigrants. Or in a down-turning economy, it is like letting workers from a company go and just not replacing them. No one gets fired, they leave on their own.
Larry, Oklahoma City - Jul 8, 2008 at 9:32 am
The Jokelahoman needs to name her articles "Devonna's Drivel"
Rufus, spencer - Jul 8, 2008 at 7:44 am
What a waste of money on a study! The drug dealers, cock fighters, and dog fighters also add jobs and income to our economy. Another weak attempt by Devonna to spread her bias. I still don't see a phone number listed for Devonna at the Oklahoman. I wonder why! She exists to keep the circulation of the Spanish version of the Oklahoman going!
Ray, Edmond - Jul 8, 2008 at 7:11 am
Report as inappropriate or
Ignore Ray

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