The Border Crisis: The Cost of Chaos

U.S. House Oversight and Accountability Committee, Subcommittee on National Security, the Border, and Foreign Affairs

By Steven A. Camarota on September 25, 2024

View Full Hearing


Summary: My testimony will focus on the impact of illegal immigration on housing affordability, public coffers, and American workers. Adding millions of people to the country through immigration drives up the cost of housing and reduces affordability relative to wages in areas of heavy settlement. Fiscally, illegal immigrants are a net drain — they create more in costs than they pay in taxes. This is primarily due to their low average education levels, which results in low average earnings and tax payments. Their lower incomes and education cause a large share to qualify for welfare programs, typically through their U.S.-born children. Illegal immigration also increases the supply of labor impacting the wages and employment of some American workers, often the poorest and least educated. Further, the availability of illegal immigrant workers allows American policymakers to ignore the decades-long increase in the share of working-age less-educated U.S.-born men not in the labor force — neither working nor looking for work. They are not counted as unemployed because they are not actively looking for work. This deterioration is linked to serious social pathologies such as crime, welfare dependency, suicide, and drug overdoses. Finally, illegal immigrants do increase the aggregate size of the U.S. economy, but overall GDP impact is not a measure of their tax contributions or economic benefits to the U.S.-born. Almost all the GDP increase goes to the illegal immigrants themselves in the form of wages.