Thinking Economics - Case Study 1.1m

Session 1 — What is Economics?

Case Study 1.1m "United States: Land of Opportunity"

Directions: Complete the following case study and record your answers on a separate sheet of paper.

Topic: The economic motivation for immigration to the United States. A brief history of recent immigration laws is included.

Objective: Understand the reason for and issues around immigration to the United States. Recognize the changes to the immigration laws in the United States.

Key Terms:	immigration	United States
	food stamps	free-market system
	incentive	economic opportunity





Careers:	economist	historian







Web Site Links:	www.ins.usdoj.gov/graphics/index.htm
	www.us-immigration.com/

Case Study:

Since its early beginning as a nation, the United States has been a destination for many immigrants. It is known throughout the world as the land of opportunity. The reason stems from facets of the free-market system employed by the United States:

private property
profit motive
economic incentives for individual effort
business opportunities

Individuals relocate to the United States to improve their economic situation. Many nations are either too impoverished to offer economic opportunities or do not financially reward work effort. Some immigrants were transported to the United States to be used as forced or slave labor. The African slave trade is by far the biggest example of this.

The overwhelming main reason for immigration to the United States is economic. However, individuals also immigrate to the United States is because of the democratic government. Refugees are individuals who flee their own nations where they face persecution for their beliefs. Refugees immigrate to the United States in search of the political and religious freedom. Throughout history, less than 10 percent of individuals have relocated to the United States for religious or political reasons.

CS Question #1: What is the main motivation for immigration to the United States?

The key to economic success in the United States has a lot to do with the professional skill level. This level is often directly proportional to the level of education. The following is a chart of occupations held by the immigrant population by percentage of the total population:

Occupation	Percent of total immigrant population
Unknown or unreported	30.1
Homemakers	16.5
Students	12
Professionals (special or technical skills)	9.2
Unemployed, retired	7.2
Laborers	6.7
Service Occupation	5.1
Executive, managerial, administrative	3.8
Administrative Support	2.6
Precision production, repair	2.5
Agriculture including fishing and forestry	2.1
Sales	2.1

CS Question #2: Based on this information, do you think immigrants, on average, are able to meet their goals of economic success? Explain your answer.

The only true natives to the United States are Native Americans. The rest of the population is made up of immigrants or the descendants of immigrants. Despite this, overall Americans view immigration as a problem because of the extreme number of individuals wanting to enter the nation. The waiting list to enter the United States as a legal immigrant is now over 3 million.

The first laws attempting to limit immigration passed in 1790. This just 7 years after gaining independence after the American Revolution. This first law required a 2-year residency before an individual could qualify for U.S. citizenship. This period was raised to 14 years as part of the Naturalization Act in 1798. Immigration laws continued to be changed and revised throughout history.

CS Question #3: Do you think it is hypocritical for Americans to view immigration as a problem? Explain your answer.

The following is an evolution of major changes to the immigration laws in recent years.

The Immigration and Nationality Act of 1965 enforced:

Limit of 170,000 immigrants per year from nations in the Eastern Hemisphere
Limit of 120,000 immigrants per year from nations in the Western Hemisphere
Spouses, children and parents of U.S. citizens are exempted for the visa limit
Special status is given for immigrants who possess job skills in demand

The Act was later amended in 1978 to state:

Limit of 290,000 immigrants per year for the entire world
A maximum of 20,000 from any one nation

The Refugee Act of 1980 made further changes:

Limit of 270,000 immigrants per year for the entire world
Refugees are excluded from the limit

The Immigration Act of 1990 drastically increased the limits:

Limit of 675,000 immigrants per year

The Illegal Immigration Reform and Immigrant Responsibility Act of 1996 made the following changes:

Easier deportation for individuals attempting to enter the U.S. without proper documents
Established an income requirement to bring family members to the U.S.
Illegal immigrants who reside in the U.S. for more than 6 months are barred from re-entry for 3 years
Illegal immigrants who reside in the U.S. for more than a year are barred from re-entry for 10 years
Broadened the crimes that an immigrant can be deported for
Limited the right of appeal to decisions made by the Immigration and Naturalization Service
Restriction of food stamp benefits

CS Question #4: What do you think are the two most significant immigration laws? Why?

Further Thought:

What is your opinion on immigration?
What do you think about the current immigration laws?
Why do you think immigration laws change so much?

*Occupation data for immigrant population source Immigration and Naturalization 1998 Annual Report.

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