econ 100b. Q&A cheat sheet

econ 100b. Q&A cheat sheet - In addition, they also...

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Chapter 6 The Immigration Equation By DAMON DARLIN Published Sunday, September 10, 2006 1. In what way is U.S. economic growth affected by immigration as opposed to population growth with a high birth rate? As opposed to population growth with a high birth rate, immigration immediately increases the amount of labor resources. Therefore, there is less of a drain on the economy as the effect from population due to birth. In other words, immigrants help economic growth through their purchases as well as providing labor supply and starting new businesses. 2. The baby-boom generation is hitting its retirement age. How do immigrants help resolve some economic problems caused by the retiring baby-boom generation? Immigrants help reduce the labor shortages caused by the baby-boomers who are retiring.
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Unformatted text preview: In addition, they also help fill some of the slack in some markets, such as housing, when baby-boom retirees move out of their existing homes. In a sense, immigrants increase both aggregate demand and aggregate supply in the economy. 3. The article highlights the importance of downward mobility. Why is mobility as important as immigration in affecting the U.S. economy? If immigrants are not upwardly or geographically mobile, then they will not be immediately ready to fill in the gaps created by native-born Americans, such as affording homes in the declining markets. These immigrants might concentrate mostly in major cities, such as California, New York, rather than spreading over areas where they are needed....
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This document was uploaded on 10/09/2008.

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