Immigration vs Deportation: The Financial Impact
Isabel Bernal, John Hancock College Prep, Senior
Under constantly changing policy shifts, one of the most affected populations has become the immigrant community. Immigrants are often seen as having a negative impact on the finances of our society but much research suggests that they are incredibly essential to the economy of our country.
Immigrants have had an important impact on our economy and removing them could create more financial problems for the country. Undocumented immigrant households in 2023 alone accounted for approximately “$89.8 billion in federal, state, and local taxes” (American Immigration Council, 2025). This contribution helped fund a wide range of social services benefiting all American people. Also in 2023, “immigrant households paid over $167 billion in rent and held over $6.6 trillion in housing wealth”(American Immigration Council, 2025).
Others point to a more mixed impact though. For example, a PhD Candidate from UIC notes that “immigration can theoretically impact the wages and well-being of different groups differently. 1) natives with the same skill level, 2) natives with a different skill level, and 3) firms.” The economic impact depends on two forces: the supply effect, which tends to push wages down, and the demand effect, which generally pushes wages up. Given this description you can imagine how increased competition for jobs from immigrants could impact some wages negatively while immigrants spending levels could increase the need and wages for other jobs.
This also does not consider the human component as JHCP senior Ximena R. notes, “The issue with ICE raids at the moment is significantly detrimental, especially to the families personally affected…’”
There is much evidence for the economic contribution of immigrants but it is also important to consider the impact to people affected.
Statistics:
Freking, Kevin, and Lisa Mascaro. “Here’s What’s in the Big Bill That Just Passed the Senate.” PBS, Public Broadcasting Service, 1 July 2025, www.pbs.org/newshour/politics/heres-whats-in-the-big-bill-that-just-passed-the-senate.
American Immigration Council. “New Data: Immigrants Keep Economy Strong, as Congress Considers Wasting Billions on Mass Deportation - American Immigration Council.” American Immigration Council, 25 Feb. 2025, www.americanimmigrationcouncil.org/press-release/immigrants-keep-economy-strong-as-congress-debates-mass-deportation/.
Interviews:
PhD Candidate at the University of Illinois Chicago
Ximena R. John Hancock College Prep Senior xarincon@cps.edu
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