Mass Deportation Policy Could Shrink Arizona Economy

sb1070SB-1070 Mass Deportation Policy Could Shrink Arizona Economy By $48.8

When Arizona passed SB-1070 last year, the state began to feel the economic pain almost immediately due to a boycott that was organized in response. This past fall, the Center for American Progress, along with the consulting firm Elliott D. Pollack & Company, found that the boycott itself could cost the State Convention Industry 2,800 jobs and $141 million.

Thursday, the Center for American Progress, together with the Immigration Policy Center, released a report that details the more long-term economic effects of the law itself. According to the study, the SB-1070 approach “would have devastating economic consequences” if its goal of driving out undocumented immigrants was accomplished. “Driving the undocumented immigrants out of Arizona would lead to significant losses of jobs for both native-born and foreign-born workers,” states the report. “It would trigger a significant contraction of the state economy as it struggles to grow its way past the Great Recession. And it would lead to substantial lost tax revenue for the state government which is already reeling from the recession and high unemployment.”

The report compares the cost of mass deportation versus the economic benefits associated with legalizing Arizona’s undocumented population:

Deportation effects in Arizona

  • Decrease total employment by 17.2 percent
  • Eliminate 581,000 jobs for immigrant and native-born workers alike
  • Shrink state economy by $48.8 billion
  • Reduce state tax revenues by 10.1 percent
  • Legalization effects in Arizona

  • Increase total employment by 7.7 percent
  • Add 261,000 jobs for immigrant and native-born workers alike
  • Increase labor income by $5.6 billion
  • Increase tax revenues by $1.68 billion
  • Andrea NillThe report does not include an analysis of the costs associated with defending SB-1070 in court. Since Gov. Jan Brewer (R-AZ) signed the bill into law in April, the state of Arizona has spent over $1.5 million fighting legal challenges against it and will likely spend even more as the lawsuit moves its way through the courts.

    Arizona is currently facing an estimated $825 million budget deficit. Brewer has already proposed a budget containing $1 billion in spending reductions to Medicaid and other services. Republicans are now demanding another $600 million in additional spending cuts, including $200 million from K-12 education.

    Andrea Nill

    Wonk Room

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    Comments

    1. Annette says

      Oh, for Pete’s sake, how about you take a look at what that report you cite is really saying:

      The economic analysis in this report shows the S.B. 1070 approach would have devastating economic consequences if its goals were accomplished. When undocumented workers are taken out of the economy, the jobs they support through their labor, consumption, and tax payments disappear as well.

      So, in other words, the developers, contractors and other businesses who hire illegal aliens to build and repair houses or do other labor, the businesses who cheat America’s blue collar union workers out of jobs, will simply refuse to hire regular American workers because they’d have to pay a reasonable wage and the workers compensation and other legal taxes they are SUPPOSED to pay but get away with not paying when they hire illegally. Those employers who cheat us all by spreading the true cost of those illegal employees onto other Americans who then have to pay more for health care, schools, roads, and educational costs for the illegal aliens the employers hire. The businesses that hire illegal aliens rake in the profits while the American taxpayers have to pick up the bill.

      And the liberal’s solution is to make those people legal immigrants? Or just ignore the problem until they’ve been her so long their kids suffer if they’re deported?

      No. A crackdown is long overdue. Even this year, the adult children of illegal aliens are clamoring for in-state tuition rates (read: taxpayer subsidies) for college. The taxpayers who justifiably speak out against this injustice toward our own children who can’t go to college are criticized for “being mean” to the poor illegal aliens.

      Hey, how about we stop prosecuting criminals who sell drugs to kids because, after all, those criminals then have money to help boost their local economy!

      I’ve got a much better idea on how to deal with illegal aliens. If you want them to work here, give them permission to work LEGALLY in this country, but with absolutely no advantage in immigration over any other person who is respectful enough to wait their turn to immigrate.

      Then make employers pay what they should be paying to hire them, including the legally required workers’ compensation an other taxes. If employers still cheat and hire illegal aliens, confiscate their million dollar properties, give them huge fines, and put them in jail.

      That’s the solution to our illegal alien problem. Stop letting employers profit from hiring them. And stop giving them advantages (like amnesty) over potential immigrants who are willing to respect the law and wait their turn.

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