Patrick Schwerdtfeger is a motivational speaker who can speak about immigration and its positive impact on the economy at your next business event. Contact us to check availability. The full transcript of the above video is included below.
Full Video Transcript:
Hi, and welcome to another edition of Strategic Business Insights. Today we’re going to talk about immigration and how important immigration is for our economy. Here is the United States, people seem to hate immigration. People are always critical of immigration. They blame immigration for all kinds of problems like crime, and they say that immigrants use social services, they use our emergency rooms because they don’t have healthcare, all kinds of problems.
And you know what? That’s not untrue. It’s true. There are higher levels of crime involved with some of these immigrant populations. They do use the emergency room. They do take advantage of social services when they don’t pay into it, many times with tax revenue. A lot of them do but some of course, the illegal ones in particular, do not. So in this video I am not saying that those things aren’t true. But there’s another side to the coin that people don’t give any credence to, and it’s super-important.
So here’s the deal. Consumer spending is the single biggest component of our economy. Here in the United States, consumer spending accounts for 70 to 71% of our GDP, which is our gross domestic product. In other words, all the business that takes place in our economy, 71% goes to people like you and people like me buying food, shelter, clothing, and energy. Food, shelter, clothing, and energy. That is our economy.
So the immigration population, which in this country is 12-1/2%, so 12-1/2% of our population—our population right now is about 320 million, ballpark—so 12-1/2% is about 38 million. Again, the numbers aren’t exact, but you get the idea. Twelve-and-a-half percent of our population are immigrants, and about 11 million are illegal immigrants. So of the 38 million, about 11 million, which is maybe 30% of that population, is illegal.
But the bottom line is, that represents not only 12-1/2% of our population, but by default it also represents about 12-1/2% of our GDP. All of those immigrants, they’re all buying what? They’re buying food, shelter, clothing, and energy. They’re buying gas. They’re paying rent somewhere. They’re buying food.
Granted, some of them may be living at a lower standard of living than some other people, so maybe it’s not 12-1/2% of our GDP but only 10% of our GDP, but it’s 10% of our GDP. If all of those immigrants left, if we could find a way—let’s talk about some of these views of people who hate immigration—if you could get rid of all the immigration in the entire country, just deport the whole group, we would have the biggest recession in American history. We would have an absolute collapse of our economy, because all of a sudden, 12-1/2% of the population, who’s buying food, shelter, clothing, and energy, would just disappear.
So we do not want immigration to go away because it’s our GDP. It’s our economy is defined by our population. People don’t understand that. Population growth is not good for the planet but it’s very good for the economy. It means our economy can grow.
Now, if you look at the population of the world between 2010 and 2050—it’s a 40-year time span—the world population is going to grow by 34% during that timeframe. Now, the population in Europe during the same timeframe is growing by 0%. Their population is stagnant. It’s not growing. That’s why the European economy is struggling so much. There are other problems like debt and entitlement programs, but the bottom line is that their population isn’t growing, which means that their economy isn’t growing. That’s the major problem.
If you look at Russia, between 2010 and 2050—40 years—their population is shrinking by 12%. It’s shrinking by12%. If Russia didn’t have oil in their economy, their economy would be cratering between now and 2050. But it gets even worse than that. In Japan, which is the worst-case scenario in terms of population, 2010 and 2050 their population is shrinking by 17%. Seventeen percent, their population is going down between now and 2050. Their economy is in huge trouble.
Meanwhile, here in the United States, our economy is growing – by 26%. The world is 34, we’re at 26. Why is that? Now, our birth rate is higher than in Europe and it’s higher than in Japan. So that’s part of it. We’re making more babies. We’re making more babies than those other countries. But a huge part of it is the fact that we have higher levels of immigration. People want to come to this country and we’re letting them in, and that’s a good thing.
It’s a good thing. Stop blaming immigration on everything. Immigration is our population, which is growing, and because our population is growing, our economy is growing. It’s not growing as fast as some people want, but it is growing, and a big part of that is because the population is growing. Immigration is good for this country.
Again, population growth overall is bad for the planet but it’s good for the economy, and our population is growing. We’ve got a lot of space geographically. The United States is a huge country, so we’re not overcrowded yet or anywhere close to it. So the fact that our population is growing because of immigration is a good thing.
Thank you for watching this video. My name is Patrick, reminding you to think bigger about your business, think bigger about your life.
Patrick Schwerdtfeger is a keynote speaker who has spoken at business conferences in North America, South America, Europe, Africa, the Middle East and Asia.