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Nature and importance of entrepreneurship
Nature and importance of entrepreneurship
Economic importance of entrepreneurship
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December of 2007: A recession begins in the United States that is to last for the next two years. During this time of crisis, the Center on Budget and Policy Priorities (CBPP) estimates that nearly 8.7 million Americans lost their jobs. Unemployment is at an all-time high and the economy has reached a sudden halt in growth. Immigration slows as well; the Organization for Economic Co-operation and Development (OECD) reports that the number of immigrants entering the country increased by only five percent in 2008 and down to two percent in 2009. This number is meaningless to most Americans if not a positive sign, as many people are convinced that immigrants simply take the jobs that otherwise native citizens would be working, overpopulate the country, and overall weaken the economy. Contrary to this widespread misconception, immigrants, in fact, strengthen the economy through creating jobs in America both by the practice of entrepreneurship and their possessing of individual, unique skills, reducing the need for outsourcing, and adding diversity and furthermore relieving tension between the United States and other nations, while ultimately receiving an opportunity for a better life than they would have otherwise, something this country was initially built upon. For starters, immigrants are simply more likely to start their own businesses. To put this into mathematical perspective, the Small Business Administration claims that immigrants are an astonishing thirty percent more likely to become entrepreneurs, and non-natives own nearly one-fifth of all of the small businesses throughout the country. One may ask, what does this have do with me? Well prior to the recession, the Fiscal Policy Institute listed these small bu... ... middle of paper ... ...s at lesser paying jobs, whereas only twenty-six percent beg to differ. Because many immigrants typically come to America with next to nothing, they are obviously going to be more likely to work for lower wages. This is, also, why it is so beneficial for foreigners to start small businesses. Because they are willing to work harder for less money, this reduces the need for outsourcing. Sourcing Line Computer Economics shows that roughly 2.3 million jobs were outsourced in America in 2012. If immigrants were to replace these positions, shipping costs would decrease significantly. The value of the American dollar would be better protected. The need for communication between other countries in the making of products would no longer be needed. And most importantly, the quality of products would likely increase. Together, this makes for a tempting package.
The United States is admitting more than 800,000 legal immigrants a year, with at least 200,000 more illegal immigrants settling permanently as well (National Review 12.13.93). This figure can also be bolstered by the "commuter" immigrants, illegal immigrants which cross the border for a period of time to work in low-paying, labor intensive jobs. These immigrants are creating one of the biggest burdens facing the government of the United States today, unemployment.
The other aspect is that illegal immigrants have positive effects in the U.S economy by decreasing consumer cost. Most of the illegal immigrants came to the U.S to fill the secondary labor market; therefore products and services become cheaper because illegal immigrants work for lower wages, thus providing a kind of subsidy to American consumers. Nadadur Ramanujan in his article “Illegal Immigrants” states that, “Because illegal immigrants serves to allow businesses to minimize their cost of production in the secondary sector, it positively impacts income of all native workers by decreasing
The United States of America has the largest foreign-born population in the world. With nearly thirteen percent of the total population being foreign-born, one may find it hard to imagine an immigrant-free country (U.S. Bureau of the Census). Immigration has been an integral part of the United States’ overall success and the country’s economy since it was established and without it, would have never been founded at all. Although there are some negative issues associated with immigration and many native-born Americans believe to be more of a problem than a solution, overall it actually has a positive effect. Immigrants in America, among other things, fill jobs where native-born Americans may not want to work or cannot work, they contribute to Social Services and Medicaid through taxes and they help provide the backbone of America, especially by working jobs that natives may have not even considered.
While the legal citizens are complaining about illegal immigrants taking up jobs in the low wage sector, this is not true. Undocumented immigrants are able to access those jobs because of the immobility of the American citizens working in the low wage sector (Nadadur 1048). On the other hand, the efforts of undocumented immigrants are not only realizable in the low wage sector, but also high wage sector that provides for white-collar jobs. Some of the illegal immigrants that reside in United States are highly qualified professionals and their input is significant in driving the U.S economy to greater heights. Within the population of undocumented immigrants,
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
In 2007, the White House issued this statement in hopes to influence a Congressional debate: “Immigration has a positive effect on the American economy as a whole and on the income of native-born American workers” (Pear). This statement relates to the idea that immigrants actually enhance the productivity of American workers and increase their earnings in a significant amount, estimated at $37 billion a year (Pear). This is just one way in which immigrants support economic development in the United States. Since the U.S. is an i...
First, immigrants come to the U.S. to work and bring valuable skills which help grow the economy despite the negative views surrounding their part in the U.S. economy. Since the 2008-2009 recession the view on immigration and its effects on the economy has been more negative than positive (Peri, 2012). A study done by Harvard’s Kennedy School of Government found that about 50 percent of American adults believe that immigrants burden the country because they, “take jobs, housing, and healthcare”, while the other 50 percent believe that, “immigrants strengthen the country due to their hard work and talents” (Delener & Ventilato, 2008). Over the past decade, “over half of the increase in the U.S. labor force,… was the result of immigration-l...
The United States of America, being a country founded by immigrants, is known all over the world as the land of great opportunities. People from all walks of life travelled across the globe, taking a chance to find a better life for them and their family. Over the years, the population of immigrants has grown immensely, resulting in the currently controversial issue of illegal immigration. Illegal immigrants are the people who have overstayed the time granted on their US, visa or those who have broken the federal law by crossing the border illegally. Matt O’Brien stated in his article “The government thinks that 10.8 million illegal immigrants lived in the country in January 2009, down from a peak of nearly 12 million in 2007.”(Para, 2) While some argue that illegal immigrants burden the United States of America and its economy, others believe that they have become essential and are an important part of the US, economy.
Immigration has been the major source for America’s growth.The United States has the most immigrants in the world ("Nation of Immigrants"). Russia has the second most with only one fourth the number in America ("Nation of Immigrants"). The United States currently has over 40 million immigrants (Kirkwood). About 28 percent of immigrants in America are illegal (Kirkwood). Those 11 million illegals make up about 3.5 percent of the U.S. population (Kirkwood). This huge number grows every day as more and more people cross the border illegally.
Mandel, Michael J. "The Immigrants: How they are helping to revitalize the U.S. Economy." Business Week 13 July 1992. 114-18
Those who support immigrants being protected by the law believe that immigrants help the economy by creating lower wages which enables companies to make better profits. According to Becky Akers and Donald J. Boudreaux, immigrants “should be allowed to contribute to the United States economy in the Constitutional and legal precepts that guarantee all immigrants the opportunity to pursue life, liberty, and happiness in the United States” (22). If immigrants were not here in the United States, the jobs they do might not even get done by anyone else (Isidore 103). Immigrants fill up the jobs that many Americans do not want. “Specialization deepens. Workers’ productivity soars, forcing employers to compete for their time by offering higher pay” (Akers and Boudreaux 25). As researcher Ethan Lewis said, “Economics professor, Patricia Cortes, studied the way immigrants impact prices in 25 large United States metropolitan areas. She discovered that a 10-percent increase in immigration lowered the price...
Economically, immigrants greatly boost an economy by providing new job outlets, more money to companies, and reducing the unemployment rate. A large influx of immigrants will help many companies because of supply and demand, more people equals more needs to be provided. With the average immigrant worker working at lower wages, immigrants reduce the amount of money a company loses when paying their employees. A writer at The Fiscal Times connects this idea by claiming, “Without the immigrant labor, prices consumers pay for hotels and restaurants would be substantially higher (Furchgott-Roth).” Other than keeping vacations and dinners cheaper, immigration has yielded great results in the field of education. With a majority of immigrants relocating with their family or having a family in the new country, it is highly likely for them to send their offspring to school so that they can have a good education. This bodes well for the high school and/or college they attend because the children increase the graduation rate, which is one of many factors people use to determine how good a school is. Once acquiring a higher education, many of them will decide to open up their own business or wander into the job market. The former option has yielded excellent results for the United States, with immigrants owning almost one in five of the small businesses in America (Bass). The latter keeps a
Immigration has been a controversial topic for over the past centuries. However, along with the election of a new president. the public has also created a fight to overcome the challenges the government has thrown to those undocumented immigrants. Immigration can be described as a person relocating to a new place and settling in a form of advancement. While there are benefits to having immigration, people do not always view the positive side for both parties. Native people often view immigration as a threat to their country by arguing about the lack of jobs and some illegal immigrants take advantage of receiving help from the government. However, according to the Cato Journal, immigrants both legal and illegal contribute to the growth of the economy and the creation of jobs.Regardless of being a native born citizen, any person living in the U.S mus...
The current effects of immigration throughout the United States has had a negative impact on its economy. Whether foreigners are legal permanent immigrants or illegal occupants, nations must diligently keep track of all individuals. This is a brief analysis on how immigrants impact the U.S and strategies to minimize their effects on this nation. In addition, the U.S must implement and monitor plans of action to lessen unemployment of citizens and reduce the excessive use of benefits and resources by immigrants.
of unemployment from 2000 to 2005 can be attributed to undocumented immigrants, and that jobs disappearing from U.S. born adults aged 16 to 24 and African Americans who has no college degree. It scenes to be that in the employment loss surrounding the age 35 and men without college degrees is due to the more outflow of illegal immigrants into states.”2