Monday, June 20, 2005


When immigrants send remittances back their homeland does that harm the US economy on net? Lawrence White doesn't think so. He says:

Hanson's worry overlooks some very basic points. The first is that the money immigrant workers have to remit is money they have been paid in exchange for what their labor contributes to the economy's output. The cash indeed doesn't come out of thin air -- the workers have to help produce the goods that generate revenue for the firms that pay them. The real wealth they transfer is wealth that would not have existed but for their work.