National Review – One of the selling points of immigration reform is that it will boost the economy and raise the U.S.’s GDP. But opponents counter that there will be economic losers in this process, and those hurt by higher immigration may be low-skilled workers who already are having a hard time economically.
This points to a tricky aspect of thinking about immigration: While the total economic gains are important, it also matters to whom those dollars go, because an income gain to one person doesn’t necessarily offset an equal dollar loss to another. Simply put, it hurts more to lose a dollar if you’re poor than it helps to gain a dollar if you’re rich, an effect of what economists call the “declining marginal utility” of money. [Read More]
