Immigration appears fiscally positive in national statistics because the federal government collects tax revenues from immigrants. However, this is misleading as state and local governments bear the brunt of the direct costs for education, housing, and emergency services, creating a net economic burden on local communities.

Beyond its long-term growth benefits, rational immigration policy can be a powerful short-term tool against inflation. By addressing labor shortages in critical sectors like construction, agriculture, and elder care, an increased and targeted immigrant workforce can directly reduce cost pressures on essential goods and services.

Contrary to common political narratives, undocumented immigrants are often a net positive for government finances. They are heavily documented for tax purposes (e.g., Social Security) and pay into these systems but are less likely to draw benefits, effectively subsidizing programs for citizens and creating a highly profitable workforce.

America intentionally avoided solving illegal immigration because it serves a crucial economic purpose: providing a flexible, cheap labor force that doesn't draw on social safety nets. This benefits industries and consumers while placing little burden on the state.

Data from 2004-2023 reveals low unemployment in occupations that heavily utilize H-1B visas, such as tech and engineering. This suggests that foreign workers are filling a talent gap rather than displacing a large number of available American workers, challenging the narrative that immigration is a primary cause of job loss in these sectors.

In a true market economy, labor shortages are impossible; wages would simply rise to attract workers. The argument that a country needs low-skilled immigrants to fill jobs is often a way to artificially suppress wages for the domestic working class, preventing market forces from correcting the balance.

Restricting immigration halts a key source of labor for essential sectors like agriculture and construction. This drives up consumer costs and could cut GDP by 4-7%, creating a direct path to higher inflation and slower economic growth.

The economic cost of zero-migration policies isn't just the loss of immigrant talent, but also the loss of their "spillover effects." Research shows immigrant innovators significantly boost the productivity and output of their native-born colleagues. A third of US innovation, measured by patents, is attributed to immigrants and these crucial collaborative spillovers.

Immigration policy must account for economic incentives. Unlike in the past, modern welfare states make immigration an economically rational choice for survival, not just opportunity. This shifts the dynamic, attracting individuals based on benefits rather than a desire to contribute without a safety net.