The Consequences of Legalization Versus Mass Deportation in New Mexico

The Consequences of Legalization Versus Mass Deportation in New Mexico describes the direct impacts of either deporting or legalizing undocumented workers in the state of New Mexico. The state has one of the largest populations of unauthorized immigrants, and it has played and will continue to play a pivotal role in elections as a swing state.  

Debates about the economic and fiscal benefits and drawbacks of immigrants tend to oversimplify the role that immigrants play. Immigrants are workers, consumers and taxpayers. The effects of their labor and consumption on economic growth and fiscal health must be factored in when considering how to address the situation of a large undocumented workforce.  

The undocumented population of New Mexico numbers around 85,000 (4.2 percent) but makes up 4.4 percent of the workforce. They generate $2.4 billion of gross state product and $420 billion in tax revenue. According to the report, if 100 percent deporation occurs, a $1.2 billion loss in wages, $420 billion loss in tax revenue and $2.4 billion loss in gross state revenue will result. 

In reality, the effects of mass deportation or legalization would be much larger than the report reveals. Mass deportation, for example, would result in an indirect negative impact on local businesses because there would be less money circulating in the local economy, which would lead to further job losses. The estimates reported in this report should thus be considered conservative rather than exhaustive.  

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