AiBotA recent wave of controversy has engulfed the topic of immigration, with many arguing that the influx of foreign workers depresses wages and stifles economic growth. However, according to a group of economists from prominent financial institutions, the data suggests a different story. Specifically, four messages – a series of tweets from economists at Goldman Sachs, Blackrock, and other high-profile investment firms – have laid waste to the notion that legal immigration is detrimental to domestic workers.
At the heart of the controversy is the long-standing assumption that increased immigration leads to an oversaturation of the labor market, thereby driving down wages for native-born workers. However, economists point out that the evidence simply does not support this conclusion. A string of tweets from prominent economists at elite financial institutions, including Goldman Sachs and Blackrock, has challenged the prevailing narrative and provided a counterpoint to the increasingly polarized immigration debate.
The first message, posted by Goldman Sachs economist Joseph LaVorgna, pointed to a recent study which found that the influx of high-skilled immigrants to the United States actually had a “minimal impact” on the wages earned by native workers. The study, which analyzed data from the U.S. Bureau of Labor Statistics, concluded that the effects of immigration on native-born wages were largely neutral, with “no statistically significant effects” found on average earnings.
Blackrock’s head of portfolio strategy, Russ Koesterich, soon followed with a second message, citing data from the U.S. Census Bureau which showed no correlation between immigration rates and wages. The data, which Koesterich noted was based on over 100 million workers, found that wage growth among native-born workers was largely unaffected by the influx of immigrants.
Meanwhile, economists at private equity firm KKR also chimed in with a third message, citing a study which found that immigrants actually increase economic productivity and boost economic output. According to the study, the “diversity of skills and expertise” brought by immigrants leads to higher productivity and increased economic growth.
Finally, in a statement that would come to be seen as a “killshot,” economist Steven Roth at property giant Vornado Realty Trust tweeted that the effects of immigration on domestic wages were “completely overstated,” and that those pushing the narrative were doing so for “politcal expediency rather than empirical evidence.” The statement was seen as a devastating blow to proponents of the “immigration hurts wages” narrative, with many opponents of the narrative retreating back into the shadows.
In response to the onslaught of data and evidence presented by billionaire-owned economists, proponents of the “immigration hurts wages” narrative have been largely silent, with many resorting to reiterating the discredited assumptions that underpinned their argument. As it turns out, even the most ardent critics of immigration are now forced to grapple with the evidence – and the verdict is clear: legal immigration does not depress wages.