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FALLING BEHIND
The Declining Economic Power of Hispanics
February 21, 1997

Questions asked
in this forum:

How has immigration impacted the Hispanic population?
Would foreign aid reduce illegal immigration?
What part does racism play in Hispanics economic troubles?
What role has and should the government play?
Are different groups doing better than others?
ADDITIONAL COMMENTS

NewsHour Backgrounders


Jan. 2, 1997: Jeffrey Kaye looks at the rising political power of Hispanics.
Oct. 23, 1996: Hispanic Americans fight against a possible backlash against immigration.
A question from Richard Mendoza of Santa Ana, CA:

Is there evidence that the greater influx of immigrants in recent years, particularly Latin American immigrants, has caused greater competition for jobs? Are enough private sector jobs being created not only for recent immigrants, but for their children?

Speaker Cruz Bustamante responds:

This is a fair question that ought to be asked. Traditionally, the answer has always thought to have been: yes, more immigrants have produced greater competition for jobs. This is partially true. New immigrants primarily seek low paying manual-labor jobs such as in the service and agriculture industries. Recent studies by the Urban Institute and the Rand Corporation found that while there has been increased competition for jobs, immigrants are generally competing with other immigrants and not with native born job-seekers. This has led to a downward pressure on wages in the jobs immigrants usually seek.

In the early 1990's, California endured several years of recession and a stagnating economy leading to a loss of 800,000 jobs. Since 1995, however, both my state and the entire nation have enjoyed steady growth, but it isn't enough.

Linda Chavez responds:

Immigration certainly can create more competition for jobs, especially among recent immigrants who are in the same labor market as new arrivals. But with a growing economy and low unemployment, we shouldn't slip into thinking that this means immigrants take jobs away from people who were here before them. We don't live in a zero-sum economy with only a fixed number of employment opportunities. The American economy actively creates jobs, and immigrants helps propel this phenomenon through their own consumer spending and entrepreneurship. Also, immigrants occupy many positions that native-born Americans shun -- agricultural labor, meatpacking, and so on. I believe that there is plenty of economic opportunity for both today's immigrants and their children.

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