Immigration, Economic Impact of

The United States has always been the land of immigrants, from the arrival of English settlers at the beginning of the 17th century to the present day, and from the beginning, immigrants have had a powerful economic impact. The Irish, Germans, Italians, Jews, Polish, Russians, and others played important roles in the development of the new nation. The agricultural needs of the Southwest and the construction of the transcontinental railroad and mining industries drew many Chinese and other Asian immigrants to the United States in the middle of the 19th century. These immigrants provided cheap labor for growing U.S. industry and created diverse communities in previously undeveloped areas in the Midwest and the Southwest.

The beginning of the 20th century saw the tremendous growth of manufacturing industry in the United States, attracting many immigrants from Southern and Eastern Europe. Eastern Europeans also established several dozen garment industries in various industrial cities, reflecting their diverse professional experience from the old country. One study noted that the credit [Page 684]for the development of garment industry in New York must be given to Eastern European Jews because 60% were employed in those industries by 1900. The important role these immigrants played in the local economy is illustrated by the fact that there were 1,000 garment factories in New York City in 1880; by 1910, their number increased to almost 11,000 and made New York the largest clothing manufacturing center at the time.

The most recent immigrants to the United States are from Asian and Latin American countries. Asians consist of several distinct groups from East and Southeast Asia, with diverse cultural norms and values. Today, the largest groups are Chinese, Filipino, Asian Indians, Pakistani, Japanese, Koreans, and Vietnamese. These non-Europeans have something in common with the Europeans who came before them: They all want to fulfill their U.S. dream and to live in peace and prosperity. Spread throughout the country, immigrants are gaining economic stability by getting jobs and education, so they can enjoy a better life for themselves and their families. This entry looks at the economic impact of immigration and how that is related to current debates about immigration.