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Make Me Smart

The economic case for taking in refugees

Make Me Smart

Marketplace

News, Business

4.65.4K Ratings

🗓️ 20 April 2022

⏱️ 28 minutes

🧾️ Download transcript

Summary

The U.S. has a long history of resettling refugees who are fleeing war and persecution. The current program goes back to the ’80s, after the Vietnam War.

Today, as the Joe Biden administration prepares to welcome 100,000 refugees from Ukraine, we’re wondering what happens to an economy when refugees become part of it.

On the show today: the costs associated with refugee resettlement along with the contributions refugees make to our economy and why arguments about their being a drag on the labor force are overblown.

In the News Fix, we’ll talk about why investment firm Blackstone is betting on student housing, even after a couple of years of remote learning. Plus, the story behind right-wing social media account Libs of TikTok.

And later, a rooster makes a cameo on the show (see if you can spot it), and Kai and Amy give a listener career advice. </p>

Transcript

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0:00.0

Hey everybody, I'm Amy Scott. Welcome back to Make Me Smart. We're none of us as smart

0:12.6

as all of us.

0:13.6

I'm Kyle Rizdolid, it's Tuesday as we tape this, it is time for our weekly deep dive

0:17.7

into a single topic. Today, refugee resettlement, the economics thereof in the United States,

0:24.1

there is of course a long history of resettling people here who have been fleeing war persecution

0:29.9

started for real sort of after the Second World War and then after Vietnam, officially

0:35.6

the government decided it was going to do something about it in the refugee resettlement

0:38.9

act of 1980, I guess. And we're going to talk about that a little bit.

0:44.9

Yeah, since then, the US has resettled hundreds of thousands of refugees across the country.

0:51.5

The Biden administration has said it's going to welcome 100,000 refugees of the war in

0:56.4

Ukraine and is talking about a new program to expedite that process.

1:01.5

So the question for us today is what happens to an economy when refugees become part of

1:06.9

it? And here to make a smart is Romeo Vigia, she's a professor of economics at Stockton University,

1:11.6

professor of things coming on the pod. Thank you for having me.

1:14.9

So I'm going to lead with the big picture question and then we can sort of tear it apart.

1:18.2

But generally speaking does happen when refugees come into an economy.

1:25.0

So just to the outset, I just want to emphasize that of course refugee resettlement is a humanitarian

1:30.7

imperative, but of course refugees also bring with them tremendous economic potential as well

1:36.7

as economic aspirations just like everyone else. And that needs to be recognized. So when

1:43.9

refugees arrive in the US economy, the US model of refugee resettlement assigns them to contract

1:53.8

agencies that are called resettlement agencies. So they're typically given an initial allowance

2:00.6

of about $2,000 it differs by state. And that is meant for the initial phase when they enter

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