Tuesday, September 16, 2008

Fewer Want To Become U.S. Citizens Due To Higher Price

This may be a good example of the law of demand. Both of my macro (ECON 2301) sections recently read the chapter on immigration in the book The Economics of Macroissues. One of the things that chapter deals with are the costs and benefits immigrants face. My guess is that only one cost or benefit has changed significantly recently, the citizenship fees.

"Following a 69 percent increase last summer in citizenship fees, about 281,000 immigrants have applied to become U.S. citizens in the first half of 2008 — less than half the number of applicants in the same period last year, according to the U.S. Citizenship and Immigration Services."

To read more, go to:

Citizenship filings decline after fee hike


Cliff Perez said...

You said that immigrants coming to our country is a large contributor to our success, prosperity, and growth. Do you think this will have a negative effect on our economy? Do you think that the price should be reduced for the application?

Cyril Morong said...

If the research and stats they quote in the chapter we read are correct, reducing immigration will hurt. The important question is how much it will hurt. I don't know.

It is hard to say if the fees should be cut. The article did not even say why they were raised. Maybe there are administrative costs that went up. But in general, we should be open to immigration and make it easier. If that means lower fees, then that is what we should do.