US Needs More Babies and Foreigners –

Post-Covid Era: The US Economy Needs More Immigrants and Babies

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For decades, the US economy has continued to remain prosperous and dynamic even as that of other industrialized societies remains stagnant. The major contributing factor to this is the high population growth, which includes both the birth rate in the country and the number of immigrants into the country. However, according to reports from Census Bureau, the engine driving the prosperity of the US economy seems to be experiencing a downturn.

This was particularly caused by the covid-19 pandemic as the nation only experienced a population growth of just 0.1% during that period. The pandemic claimed the lives of about 500,000, causing a population decline. Also, due to social isolation and health concerns, fewer babies were born during that period. And a lower birthrate means there won’t be enough replacements to maintain the pace of the growing economy.

Though, according to recent reports, the birthrate in the United States has pumped up by an impressive percentage. This is the first time the nation is experiencing such a boom in about a decade. In 2021, there was a 1% increase in the number of births. This increase was a new opposition to the 2% yearly drop in years past.

However, the impressive upward birth chart is not enough to steady the economy. The birth rate has increased to a little over 1600 births per a thousand women, against the 2000+ required to keep the economy growing.

Since the post-pandemic period, the American labor force has experienced a shake in its workforce and economy. The current workforce cannot serve the demands of the entire population. In fact, if not for immigrants, the situation would be far worse than this. According to some economists, more than 50% of the American workforce expansion between 2010 and 2018 happened because of foreign workers. And according to reports by the Census Bureau, the country’s population as of December 2021 has increased by 392,665, and about 245,000 were immigrants.

However, the influx of immigrants into the country is also down. This is primarily because of the restrictions and policies imposed during Trump’s administration.

Now, the US immigration service is doing all it can to repair the flaw. The restrictions on work permits and green card allotment are gradually lessening, and they are slowly returning to their pre-covid statuses. There are more rooms to accommodate new workers as the demand has surged higher than the supply. This demand-supply status is the primary factor for increased wages– this is the first time in years.

However, the Federal Open Market Committee is trying to reduce the demand-supply gap from its end by making the monetary policy more stringent. This stringency by the policymakers will also reduce the number of open roles for new workers.

The immigration system will aid the labor supply from its end. However, its laws are not designed to cover up for previous shortcomings. Also, the political distinctions in Congress may largely prevent the immigration from opening wide arms to foreigners. But the best thing that can be done to steady the nation’s economy is to promote a more welcoming and rounded immigration policy, one which ensures the border is secured and at the same time encourages legal immigration. The government should also encourage more birth rates by introducing policies and child-care benefits that make it easier and less daunting in terms of financial commitment to raise children in the US.

Some analysts believe that there are specific steps that the White House can take by itself. However, they have limits. For instance, Washington can raise the yearly allowable number of immigrants without involving Congress.

Robust population growth will ensure that there are enough replacements for the aging workforce and foster idea creation, intellectual exchange, competition, and entrepreneurship that will aid economic growth.

Written by Abisola Fikayomi

Abisola is an accomplished writer interested in US Travel, immigration, passports and visas. She’s passionate about exploring new places and cultures and willing to share her experiences, expertize and findings with others. That is her primary drive for specialising in this industry.


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