Zeke Hernandez, a professor at the Wharton School of the University of Pennsylvania is originally from Uruguay, but has been an immigrant in Costa Rica, Guatemala, and Argentina, before arriving to the United States.

In the two years prior to arriving to the U.S., he spent two years doing service work in the slums of Buenos Aires, Argentina, during among the worst economic crises in its history.

Witnessing that level of extreme poverty and economic hardship spoke volumes to him.

“When I came to the U.S. and I entered graduate school to become a professor and get a Ph.D., I deeply wanted to understand what creates economic growth and prosperity,” Hernandez said during a recent conversation hosted by the Greater Philadelphia Hispanic Chamber of Commerce.

Hernandez’s newly-published book, “The Truth About Immigration,” is the culmination of more than two decades of research in the field.

From a historical context, Hernandez notes the passing of the National Origins Act in 1924, which set restrictive quotas based on race and nationality that significantly reduced immigration for individuals arriving from “undesirable countries.”

More than 40 years later in 1965, the U.S. passed what is essentially the county’s current immigration system, which has led to resurgence in immigration and more economic growth throughout the nation.

“The most basic fact about U.S. immigration you need to know is that it’s like a roller coaster,” Hernandez said. “It went up to 15 percent in the 1920s, down to 5 percent in the 1960s, [and] back up to 15 percent.”

Immigration in Philadelphia

At the start of the millennium, Philadelphia’s immigrant population percentage was in the single digits. This low percentage led to blighted neighborhoods and low business activity throughout the city.

“The city was in trouble,” Hernandez noted.

Now, that number is at around 15.7 percent, as the neighborhoods and businesses have each grown in the last two decades.

“I don’t want to say [immigration] is the only factor, but it’s a critical factor. It’s not a coincidence that that rise in immigration has coincided with a city that is doing much better than 25 years ago and is continuing to be on the rise,” said Hernandez.

Keys to Economic Growth

Hernandez outlines five major economic inputs that every resident — immigrants included — provides to an economy: talent, consumption, investment, innovation, and taxes.

All five of these inputs contribute to economic growth.

Hernandez highlights that when immigrants arrive to an economy, they bring those same characteristics, but in different ways that help grow said economy.

“You get a variety effect. You get a greater diversity of things, so you get a bigger economy and a more diversified economy,” he added.

All in all, the thesis of the book highlights the vast positive impact immigrants bring to American society and the overall economy.

Read more about author and professor Zeke Hernandez here, and “The Truth About Immigration” book here.

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Editor’s Note: This post was originally published on PHILADELPHIA Today in October 2024.