Refugees Admission and the Economy in the USA - Essay Example

Western Kentucky University

EDU 276: Displaced Persons

Dr. Ellen Godbey

July 16, 2020

Refugees and the Economy

Introduction

Refugee admission and settlement have become a point of focus due to increased news covering border control and humanitarian aid politicization. American citizens have been found to question their country's net gain when their resources have been extended to foreign countries in need. A study showed that for every dollar that the U.S. government spends on displaced persons, there is a return of two dollars within the five-year economy. There is also an increased labor supply in dangerous and unskilled fields, which normally Americans would not do. A 2015 study showed that 2.3million refugees contributed almost $21 billion in taxes.

On the global scale, various countries further points of analysis in this. In Danish, refugees have been found to replace many low skilled Danes in labor-intensive jobs. This caused many locals onto jobs with less manual labor, improving the economic opportunities for locals. Other observations in Africa, which hold close to one-third of the displaced person population and more research, show the presence of refugees is positive for local economies.

This has led me to believe that refugees have a positive effect on their host country's economy.

Examination of Interrelationships between Issues

These issues are prices, labor, income, and consumption.

The high intake of refugees locally and globally leads to high demand for goods and services. This is because there is a subsequent positive increase in real consumption per adult. The high population usually buy necessities and engage in trade with the host locals. This has led to increased immigration of entrepreneurs from neighboring communities ready to serve in the new market and the developed job opportunities. In cases where supply does not meet the increased demand, there is an increase in the prices of commodities.

Most refugees are better entrepreneurs than nationals, making them more likely to create jobs for their neighbors. Most of them also create labor supply for most odd jobs in the host country, causing locals to have improving economic opportunities. There is a high generation of the state revenue through refugees as they contribute through taxation, buying, and investment of houses and land.

Evaluation of Consequences

Local Evaluation of Consequences

Some of the decisions made on a local scale are removing barriers to ensure successful resettlement, access to health facilities, and the right to employment and innovation.

• Removal of barriers that would ensure successful resettlement helps the individuals become familiar with their surroundings and are provided with essentials, education, health facilities, and employment opportunities. This integration will prevent a population that is idle, reducing crime or domestic terrorism.
• Access to health facilities ensures the health of the immediate local communities near refugee camps as it prevents the spread of diseases since they are curbed early enough, preventing their spread.
• Right of innovation and employment- this helps the refugees integrate into the U.S. community, granting the freedom to seek employment and entrepreneurship opportunities. This way, there is high production as they can freely engage in industrial jobs. There is also job creation for the locals and an increase in the country's revenue through taxes.

Global Evaluation of Consequences

Various decisions have been made on a global scale through bodies like the United Nations, which come up with decisions and countries to sign the status in support. The following decisions have been made: obligations to respect the refugees' human rights, express solidarity for those forced to flee,, and major support to countries with high refugee intake.

• Obligations to respect the refugees' human rights – this way, each host country ensures each individual has access to food, shelter, healthcare, and a form of the basic requirement. This will enhance refugee self-reliance, allowing better integration into the community and space to be innovative. They then can be entrepreneurial and seek employment, improving the economy of the country.
• Express solidarity for those forced to flee – in Turkey, refugees from Syria can never be sent back to their country when they seek protection. This seeks to prevent displacement of many, and in turn, help reduce crime or terrorism near their borders. This is because many may join the opposition in Syria in search of survival. High instability may lead the situation to overflow. This is also to prevent any form of bitterness from rejection as it may increase the chances of attack of the refugee homes near the border.
• Major support to countries with high refugee intake – this will help ease pressure on the host countries. This is because they help expand refugee camp and resettlement homes, and more humanitarian aid is brought that can care for the large numbers. Also, good sanitation is ensured, as diseases can easily breed with many people in one place.

This ensures that the host country's resources not overwhelmed, and the health of the locals is protected.

Points of View

Local Point of View

Michigan has had a steady increase of refugees over the last 10yrs. The many young refugees arriving here will positively contribute to the labor force and support of the local population economically. The refugees have revitalized industrial centers like Utica. Also, in Cleveland, refugees' economic impact is expected to increase positively with investment in social supports such as special refugee social providers.

Global Point of View

The major hosting continent is African, the various countries being Burundi, DRC, Kenya, Rwanda, Somalia, South Sudan Tanzania, and Uganda.

In Rwanda, in-kind assistance and cash-aid have boosted local economies due to an increase in the spending capacity of refugees in their country.

In Malawi, there is employment creation, accrual of benefits to the locals, and local commerce stimulation.

In Kenya, it has been found that economic benefit is due to international aid the refugees attract. Refugees in Kakuma brought a boost in the gross regional product and increased employment by 3%. There has been development around Turkana as the refugees brought economic integration that raised per capita host incomes by 6%.

The hosting cities in African show positive economic effects by camps stimulating local economies with greater demand or by attracting international aid, which brings resources, technology, and jobs to an otherwise remote area.

Opposing Viewpoint

As refugees lead to increased demand, there arises a subsequent increase in prices, which may yield to negative wealth effects for those who may not serve the new market and compete in the labor market. There may also be an impact on prices, which differs from an increase in the local population due to varying refugees' preferences. Some documented studies show an increase in demand for the production of aid-related products, including various crops. E.g. there was evidence of international agencies' increasing demand for food and the price of tree farms.

In other cases, it has been noted that refugees who are hosted in isolated borders that tend to be limited in natural resources bring a strain as they share that with the locals, straining their economy. It comes with a concern where some refugees may take jobs from nationals, driving up the cost of goods, housing, and other services. Some costs may also arise from refugees related activities; for example, the state may be required to pay salaries to security and officials involved in refugee-related tasks.

My Argument

My argument challenges the popular opinion that displaced persons bring a negative impact on the host country. I find that they are more likely to deliver a positive outcome.

The majority of findings show improved household well-being. One out of five results shows a decline in household well-being. Employment usually increases more than decrease. In most cases, the decrease in employment has been associated with youth and informal workers.

Refugee data from the U.S. states that the initial assistance cost is high, but over some time, the refugees are a net gain to the economy.. Studies in Ohio also have found that refugees have been an asset to locals and regional areas over the years. They argue that refugees tend to find employment within 5months of their arrival, working up their way of government assistance within a few years.

Data shows that refugees have higher incomes, rates of employment, and taxes compared to other immigrant groups.

Uganda's policy that allows refugees to self-settle makes them more self-reliant, allowing them to contribute to their local communities.

Conclusion

Hosting refugees is an expense that host countries incur, from registration to resettlement into their countries. The costs are in the form of income for personnel and security, food and all basic requirements, and putting aside portions of land for refugee camps and resettlement. Local communities also have to share their resources with them. This can easily bring a strain to a country's economy.

However, it has shown that positive outcomes outweigh the negative economic changes by refugees' presence. Refugees are seen to create jobs by owning businesses that create employment and provide goods and services. For example, the return attributed by refugees in the U.S. is because they are more likely to be employed and creates jobs that U.S. born population and their income grows as their of time in the U.S. is longer. They also contribute to the economy through taxes, purchase of homes, and working in manufacturing and service sector jobs.

Organizations also help in providing humanitarian aid to host countries, easing the burden of the economy.

The above study has been able to show that Refugees contribute positively to the economy of their host countries.

Global Evaluation of Consequences

Various decisions have been made on a global scale through bodies like the United Nations, which come up with decisions and countries to sign the status in support. The following decisions have been made: obligations to respect the refugees' human rights, express solidarity for those forced to flee,, and major support to countries with high refugee intake.

• Obligations to respect the refugees' human rights – this way, each host country ensures each individual has access to food, shelter, healthcare, and a form of the basic requirement. This will enhance refugee self-reliance, allowing better integration into the community and space to be innovative. They then can be entrepreneurial and seek employment, improving the economy of the country.
• Express solidarity for those forced to flee – in Turkey, refugees from Syria can never be sent back to their country when they seek protection. This seeks to prevent displacement of many, and in turn, help reduce crime or terrorism near their borders. This is because many may join the opposition in Syria in search of survival. High instability may lead the situation to overflow. This is also to prevent any form of bitterness from rejection as it may increase the chances of attack of the refugee homes near the border.
• Major support to countries with high refugee intake – this will help ease pressure on the host countries. This is because they help expand refugee camp and resettlement homes, and more humanitarian aid is brought that can care for the large numbers. Also, good sanitation is ensured, as diseases can easily breed with many people in one place.

This ensures that the host country's resources not overwhelmed, and the health of the locals is protected.

Points of View

Local Point of View

Michigan has had a steady increase of refugees over the last 10yrs. The many young refugees arriving here will positively contribute to the labor force and support of the local population economically. The refugees have revitalized industrial centers like Utica. Also, in Cleveland, refugees' economic impact is expected to increase positively with investment in social supports such as special refugee social providers.

Global Point of View

The major hosting continent is African, the various countries being Burundi, DRC, Kenya, Rwanda, Somalia, South Sudan Tanzania, and Uganda.

In Rwanda, in-kind assistance and cash-aid have boosted local economies due to an increase in the spending capacity of refugees in their country.

In Malawi, there is employment creation, accrual of benefits to the locals, and local commerce stimulation.

In Kenya, it has been found that economic benefit is due to international aid the refugees attract. Refugees in Kakuma brought a boost in the gross regional product and increased employment by 3%. There has been development around Turkana as the refugees brought economic integration that raised per capita host incomes by 6%.

The hosting cities in African show positive economic effects by camps stimulating local economies with greater demand or by attracting international aid, which brings resources, technology, and jobs to an otherwise remote area.

Opposing Viewpoint

As refugees lead to increased demand, there arises a subsequent increase in prices, which may yield to negative wealth effects for those who may not serve the new market and compete in the labor market. Read More