Absorption Nation

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By Donald Boudreaux : BIO| 10 May 2006

 

immigrants-statue of libertyIn the Declaration of Independence, Thomas Jefferson complained that King George III "has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands."

People living in a sparsely populated land easily understand that more people mean greater prosperity. And so America was born with its doors open to immigrants -- a policy that remained largely in place until the 1920s.

The policy worked. Americans in the 19th century surpassed all of their European cousins to become the world's wealthiest people. According to economists Cecil Bohanon and T. Norman Van Cott, writing recently in The Independent Review, America's open borders worked so well that the immigrants who came here in the 19th century counteracted the economic harm done in that era by Uncle Sam's protectionist tariffs.

21st-century opponents of immigration often say "Yes. It's wonderful and true that we're a nation of immigrants. But a century ago, when immigration was at its peak, America could better absorb immigrants. We had more land and more natural resources than we have today. We can no longer absorb many immigrants."

I agree that America's ability to absorb immigrants has changed: it's higher today than at any time in history.

Only by naively supposing that a country's ability to absorb immigrants is determined chiefly by the availability of unsettled land do people conclude that America today is less able to absorb immigrants. It's true that more land was available for settlement in the 19th century. That land, however, was never much of an attraction to immigrants. Historically, most immigrants settled in cities -- think, for example, of Manhattan's Little Italy and San Francisco's Chinatown.

And the resources and amenities available in metropolitan areas today are far greater per capita than they were just before Uncle Sam abandoned his open-immigration policy in the 1920s.

Consider that in 1915 the typical dwelling in America housed 5.63 persons; today it houses fewer than half that number -- 2.37 persons. Combined with the fact that today's typical dwelling has about 25 percent more square footage than its counterpart had back then, our ability to absorb immigrants into residential living spaces is today more than twice what it was a century ago.

Also, of course, we're better able to feed ourselves today, even though the amount of land used for growing crops and pasturing animals is no larger now than in 1900. Higher agricultural productivity enables farmers and ranchers to produce more output on the same amount of land.

What about workers? A measure of ability to absorb workers is capital invested per worker. Today, the amount of capital invested per worker is nine times greater than it was just after World War I. Because a worker's productivity rises when he has more capital to work with, and because his pay is tied closely to his productivity, workers today produce and earn more than workers did during the open-borders era.

Don't lose sight of our labor market's great flexibility. In addition to absorbing millions of immigrants in the 19th and early 20th centuries, it easily absorbed the 46 million women who entered the work force during the second half of the 20th century.

In many other ways America today can better absorb immigrants. For example, compared to 1920, per person today we:

  • have 10 times more miles of paved roads
  • have more than twice as many physicians
  • have three times as many teachers
  • have 540 percent more police officers
  • have twice as many firefighters
  • produce 2.4 times more oil -- as known reserves of oil grow
  • produce 2.67 times more cubic feet of lumber -- as America's supply of lumber stands grows
  • have conquered most of the infectious diseases that were major killers in the past.

None of this is causing America to be "paved over" as some people fear. The land area devoted to parks and nature refuges is more than seven times greater today than it was in 1900. More generally, only three percent of the land area of the lower 48 states is devoted to urban and suburban uses. So not even counting the vast wilderness of Alaska, we still have 97 percent of American land to provide space for living, working, and recreation. America isn't close to being crowded.

Fact is, America today is far wealthier, healthier, resource-rich, and spacious than it was a century ago. Our ability to absorb immigrants is greater than ever.

Donald J. Boudreaux is Chair of the Economics Department at George Mason University.