Leading Economist Reaffirms Immigration's Role in Economic Expansion, Debunking 'Fixed Jobs' Notion

Kyle Pomerleau, a senior fellow at the American Enterprise Institute (AEI) specializing in federal tax policy, has publicly challenged a common anti-immigrant argument that posits a finite number of jobs or economic output to be distributed. In a recent social media post, Pomerleau stated, > "Not a fan of this framing. The issue with the anti-immigrant position is that they are wrong about there being a fixed number of jobs or economic output to be distributed between immigrants and citizens." His statement directly refutes the "lump of labor fallacy," a widely discredited economic theory.

This fallacy suggests that there is a static amount of work available in an economy, implying that new workers, such as immigrants, inherently reduce employment opportunities for existing citizens. However, economic analysis consistently demonstrates that economies are dynamic systems where labor supply can also stimulate demand and foster new job creation. Immigrants, as consumers and entrepreneurs, contribute to increased economic activity.

Research indicates that immigration can expand the overall demand for goods and services, leading to increased production and the creation of new employment opportunities. For instance, immigrants often fill critical labor gaps, boost innovation, and start businesses, all of which contribute to a growing economy rather than merely redistributing existing resources. Studies from institutions like the American Enterprise Institute have highlighted that policies reducing immigration can dampen GDP growth.

While the labor market effects of immigration can vary, empirical evidence generally suggests that the impacts on average wages and employment for native-born workers are small, or in some cases, even positive for higher-skilled segments of the workforce. Any localized competition, particularly for low-skilled jobs, is often offset by broader economic benefits, including increased consumer spending and tax contributions from immigrant populations.

Pomerleau's perspective aligns with a broad economic consensus that views immigration as a potential driver of economic growth. By increasing the labor force, fostering entrepreneurship, and boosting demand, immigrants contribute to an expanding economic pie, challenging the simplistic and inaccurate notion of a fixed number of jobs.