Newsweek on May 1 protests: "The economic impact was zero"

[Bush_Eats_Beef]

‘Zero Impact’
An economist talks about the economics of illegal immigration—and why we may be overestimating the significance of undocumented workers.

http://www.msnbc.msn.com/id/12599439/site/newsweek/

But the protests didn’t bring the economy to a halt, as some organizers had hoped. And that, says one economist, is because Americans overestimate the actual impact undocumented workers have on our economy. “It’s a positive benefit, but it’s not the be-all end-all of the economy,” says James P. Smith, an economist at the Rand Corporation who specializes in immigration labor. He spoke with NEWSWEEK’s Jessica Bennett about the relationship between the U.S. economy and the nation’s 11 million undocumented workers. Excerpts:

NEWSWEEK: Is it possible at this point to gauge the economic impact of Monday’s protests?

James P. Smith: At most, part of workers lost part of a day, but there’s no real effect on consumption. Whether it had a political effect or not—that’s a different question. But the economic impact was zero.

NEWSWEEK: How would you assess the overall importance of undocumented workers to the U.S. economy?

James P. Smith: Immigration (documented and undocumented) brings in about $10 billion a year more income for the native born. All immigrants are about 15 percent of the labor force, and illegal immigrants are about 5 percent. So it’s a positive effect—an important effect—but relative to a $10 trillion economy, it’s not driving the economy by any means.

[SoCalDem]

1. That was some FAST figuring..

:eyes:

move along..nothing to see here..buy some gas..have a hamburger..look..American Idol's on..

[MessiahRp]

2. The impact wouldn't be immediate...

Most immigrant workers are not working in a place where the impact was immediate. Their day off slowed or halted production on farms, in factories, etc. Those things take time to digest because whatever shortages were caused by lack of production hasn't reached retail shelves yet.

Rp

[tsuki]

3. Marginalize, Marginalize, Marginalize. nt

[jbnow]

4. I hope

this will reduce some of the backlash against the strikers.

I hate that this has all come up now, the last thing we need is another divisive issue!

[Neil Lisst]

5. That is up there with the comet Kohoutek and Al Capone's vault

for flops!!

Not a blip.

[fujiyama]

6. I also wonder

how much "ethnic solidarity" there was. I seriously doubt that such a high percentage of illegal immigrants took part in the protests.

Most are probably earning money to put food on their family's tables or send it to their families in Mexico.

[sinkingfeeling]

7. Gee, CBS News said last night that the boycott costs LA $100 million.

[400Years]

8. No, the impact comes in the form of thousands of people interacting

and becoming politically aware and feeling empowered.

[ProfessorGAC]

9. Stupid Analysis

First of all, no boycott or work stoppage has any enduring economic impact. This buffoon is confusing economics with finance. Of course, there will be no major impact of the protests because eventually people with have to buy the consumables they chose not to buy on May 1st. That's tautological.

And, the idea that the illegal immigrants are only 5% of the workforce means that the impact on the economy is so simpleminded as to stun the brain. 5% of the workforce is a statically relevant segment of the total employment force. If they are making substandard wages, the long term effect will be to depress wages overall, which is a drag on the macroeconomy.

This Smith fella is an idiot. Whatever college gave him his degree should ask for it back.
The Professor

[ProfessorGAC]

10. Dupe. Sorry

.

[gratuitous]

11. It wasn't MEANT to have an economic impact

It was a one day demonstration to protest the proposed criminalization of illegal immigrants, and the proposed criminalization of doing anything that might be construed as helping illegal immigrants.

I wonder why Newsweek (and so many others) are so willfully dense about what the demonstration was protesting?