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Cities Using Naturalization Initiatives To Harness Immigrants' Full Economic Potential

Simon Thompson

A recent study by the Urban Institute found cities reap significant economic benefits when eligible residents become naturalized US citizens.  But each year, only 10% of those eligible do so.

108 about to be US citizens from all over the world gathered at the Las Cruces convention center taking an oath of loyalty as part of a ceremony to become a US citizen.

Raksmey Chan came to the US from Cambodia 3 years ago to live with her husband and son in Artesia, New Mexico.

“It is great! I am happy to be one of the people, to be an American citizen.” Chan said. 

Credit Simon Thompson
New US Citizen Raksmey Chan came from Cambodia three years ago.

Now a US citizen.  Chan has the right to vote, can get federal student loans, hold on to her retirement income and petition for family members to come to the US. But the benefits of naturalization go much further.

“Legal immigrants are a tremendous boon for the US economy” said New Mexico State University professor Doctor Chris Erickson.

He said naturalization is a mechanism cities can use to harness immigrants’ full potential and promote local economic development.

http://www.youtube.com/watch?v=Sd5Dpsgfyhs&feature=youtu.be

A study by the Urban Institute found increased naturalization could increase employment by 2.2 percent, home ownership by 6.3 percent and the naturalized individuals’ earnings by almost 9%.

“lf you earn more… you are going to pay more in taxes, you are going to pay more in income tax, you are going to pay more in sales taxes. Your buying more stuff and you are probably paying more in property taxes. If incomes are higher it tends to boost up properties. Overall in promoting income growth is a benefit to government in terms of generating additional revenue.” Erickson said.

Erickson said new citizens’ resulting sense of security and willingness to make long-term investments can reap even broader economic benefits.

“They have more of a stake in society so they invest more in society” Erickson said.

Especially if those investments are in starting new businesses, innovating technologies or working in high-skill jobs.
 

It is not high tech and it is a far cry from the Silicon Valley, but Chan and her husband did open a donut shop in Artesia, and are working towards opening another store.

“We can open a couple of more kind of expanding our business and get more income to support the family.” Chan said.
 

But what about claims that immigration will increase costs to government?  New citizens are eligible for more government support programs. But the Urban Institute study found while naturalization can sometimes result in higher use of government assistance those costs are heavily outweighed by increased tax contributions through higher earnings and spending.

“The net contribution of immigrants is positive” Erickson said.

Nationally there are about 8.8 million immigrants eligible to become U.S. citizens. But less than 10 percent of those eligible do so each year.

Recognizing this untapped economic potential, at least 20 US cities including Denver, New York and Los Angeles have initiatives aimed at increasing citizenship.

 “We work hard, and that is what everybody dream of coming to this free land and get opportunity to do what they want and feel free.” Chan said.

Chan says the process took her three years, but otherwise she didn’t have too much trouble navigating the naturalization process by herself.

According to The University of California Santa Cruz between 2006 and 2010, there were 11,440 new immigrant business owners in New Mexico. And the potential is high in Dona Ana County where 1 in 5 residents are foreign born.

 

Simon Thompson was a reporter/producer for KRWG-TV's Newsmakers from 2014 to 2017. Encores of his work appear from time to time on KRWG-TV's Newsmakers and KRWG-FM's Fronteras-A Changing America.