The Truth About Immigration Book Summary - The Truth About Immigration Book explained in key points
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The Truth About Immigration summary

Zeke Hernandez

Why Successful Societies Welcome Newcomers

3.5 (133 ratings)
19 mins

Brief summary

The Truth About Immigration by Zeke Hernandez delves into the multifaceted realities of immigration, unpacking misconceptions and providing an in-depth analysis of its economic, social, and political impacts. It offers valuable perspectives for informed discussions.

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    The Truth About Immigration
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    Immigrants as key players in local economies

    Pollo Campero, a Guatemalan fast-food chain, started with a mobile cart in Guatemala City in 1971 and grew to become a household name in Central America. By 2002, the company decided to expand into the US, starting in Los Angeles due to its large Central American population. It hoped to make $850,000 in the first year, but the store hit $1 million in just 47 days. Similar success followed in Houston and Washington, DC, leading to 51 stores by 2009. Its strategy of targeting Central American immigrants, others of Latin American descent, and eventually the broader American market fueled its rapid growth.

    Pollo Campero’s success illustrates how immigrant networks can drive investment and create jobs, in contrast to traditional tax incentives used by governments, which often result in high costs and disappointing returns. For example, the deal between Wisconsin and the Chinese manufacturing giant Foxconn, which promised significant investment and job creation, ultimately failed. Foxconn pledged to build a $10 billion LCD screen factory employing 13,000 people in exchange for $4 billion in subsidies. But due to declining global demand for LCDs and the high cost of manufacturing in the US, Foxconn’s investment fell short. By 2019, only $280 million had been invested, and a mere 281 workers were hired, far from the original promise.

    Studies confirm that immigrant communities enhance the profitability and sustainability of foreign investments. For example, South Korean banks thrived in Chinese provinces with large ethnic Korean populations due to trusted local networks. This local knowledge and trust were essential for successful business operations.

    The long-term benefits of diverse immigration are significant. Historical migration patterns show that communities with various immigrant backgrounds attract more investment and achieve greater economic complexity. Hazleton, Pennsylvania, revitalized economically due to Mexican-owned factories, including those by Bimbo and Mission Foods, which settled there partly because of the existing Mexican immigrant community.

    Understanding these dynamics reveals the deep connection among immigration, investment, and job creation. Welcoming immigrant communities leads to sustainable economic growth, transforming declining towns into hubs of economic activity and making local economies more prosperous and diverse.

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    What is The Truth About Immigration about?

    The Truth About Immigration (2024) offers a fact-based, comprehensive, and nonpartisan look at immigration, debunking common myths and fears. It reveals the overwhelmingly positive impact of immigration on job creation, investment, innovation, cultural vitality, and national security, showing how newcomers benefit local communities and the nation as a whole.

    Who should read The Truth About Immigration?

    • Policymakers shaping immigration laws
    • Community organizers advocating for social integration
    • Business leaders interested in workforce diversity

    About the Author

    Zeke Hernandez is the Max and Bernice Garchik Family Presidential Associate Professor at The Wharton School of the University of Pennsylvania. A thought leader in global and corporate strategy, Hernandez has won three consecutive emerging scholar awards and was named one of Poets & Quants’ Best 40 Under 40 business professors in the world. His research on the economic impact of immigration has been featured in prominent media outlets such as NPR, Forbes, and the Wall Street Journal.

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