How Will the Immigration Bill Impact U.S. Economy?

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June 28 (Bloomberg) -- Bloomberg Economics Editor Michael McKee examines the economics behind the immigration bill passed by the Senate yesterday as the House now takes up the legislation. He speaks on Bloomberg Television's "In The Loop."

Just focusing on the economy.

The legislation would cut the budget deficit, raise employment and wages and productivity and raise return to investors.

Opposing this would leave the country worse off.

Let's start with that what republicans hate above all else, republican that.

Congressional budget analysis finds it would decrease deficits by -- it would cut the deficit $700 billion and 2024-2033. on way it does that, increase the number of people working.

It would increase the labor force by 3.5% in 2023, 5% in 2033. lance moore working and millions more paying taxes.

That means the economy grows a lot faster.

Gdp would be 3.3% bigger in 20 23, 5 .4% in 2033. employing all the new workers and giving them equipment to use would raise investment in the economy, it raises productivity and that mean higher living standards.

Every year, cbo analyzes lots of legislation.

It is hard to find one they are so positive about in terms of the economy.

Really interesting.

But there is always the argument that the immigrants are taking the jobs away from americans.

The analysis did not going to that in depth but they say it is not necessarily true.

The reason the fx may be minimal is all the new workers create their own demand, so it creates new jobs.

The number of jobs rise as well as the number of people working.

Also likely to be among the lowest and highest skilled workers -- in the short run unemployment might rise as new immigrants are absorbed in the labor pool.

Wages in the bottom 20% or top 20% might not grow quite as fast as those in the middle.

But the impact phase within 10 years, the economy overall is better off, and that is why you get such a long-term benefit.

Thank you for explaining that.

Economics editor mike mckee.

This text has been automatically generated. It may not be 100% accurate.

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