In the ongoing debate over immigration in the United States, one economic fallacy continues to dominate public discourse: the belief that immigrants - especially the undocumented—take jobs away from native-born citizens. This misconception, known as the lump of labor fallacy, assumes that the number of jobs in an economy is fixed and that any job filled by an immigrant is one less available to someone else.

         It’s easy to see how some Americans might view immigration as a zero-sum game—where one person’s gain is another’s loss. A job opens, five people apply, one is hired, and the others may feel that job was taken from them. In that narrow frame, yes, it is zero-sum. But to extrapolate from that scenario to the entire economy is to commit the fallacy of composition: assuming what’s true of the part is true of the whole. The economy is dynamic, not static. When immigrants work,  they also create demand and stimulate business growth. The labor market is not a fixed number of jobs; it expands with participation.    Immigration—documented or not—expands the economy, increases productivity, and creates more jobs. The contributions of immigrants are evident in Wisconsin; consider several industries that illustrate this point.

The Dairy Industry

         Wisconsin is America’s Dairyland, producing nearly one-third of the nation’s milk and milk by-products. Yet this iconic industry would collapse without immigrant labor. According to the Wisconsin Dairy Alliance, more than half of all dairy workers in the state are immigrants, seventy percent of whom are undocumented. These workers perform grueling, year-round tasks—milking cows, cleaning barns, maintaining equipment—that few native-born workers are willing to do.  And unlike seasonal crop work, dairy farming has no visa category for foreign labor, leaving farmers with no legal pathway to hire the workers they desperately need.

         The economic impact is staggering. A single dairy farm can support a "multiplier effect," generating millions in revenue, supporting dozens of ancillary businesses, and contributing to local tax bases. Immigrant workers don’t just fill jobs—they make the industry viable. Their labor increases output, which boosts the demand for feed, veterinary services, transportation, and retail. This ripple effect creates jobs across the supply chain, contrary to  the notion that immigrant labor is a zero-sum game.

Agriculture and the Expansion of Food Supply and Labor Demand

         Beyond dairy, Wisconsin’s agricultural sector relies heavily on immigrant labor to plant, harvest, and process crops. From cranberries and corn to potatoes and green beans, immigrant workers are essential to the state’s food system. Their presence ensures that crops don’t rot in the fields and that grocery store shelves remain stocked.

          The U.S. Department of Agriculture has consistently reported labor shortages in farming, and Wisconsin is no exception. Immigrant workers step into roles that would otherwise go unfilled, preventing economic losses and food insecurity. Their productivity increases the supply of goods, which lowers prices and benefits consumers. Again, the economy grows and demand for labor increases—not shrinks—when immigrants work.

Residential and Commercial Building Construction:  

         In urban centers like Milwaukee and Madison, immigrant labor is a cornerstone of the construction industry. These workers build homes and high rises, renovate buildings, and maintain roads and bridges. They bring skills, stamina, and a willingness to work in physically demanding conditions. With Wisconsin facing a skilled-trades labor gap—only 0.6 unemployed individuals per job opening—immigrant workers are not replacing anyone. They are enabling growth.

         Construction is a prime example of how immigrant labor expands the economy. New buildings mean new businesses, new housing, and new tax revenue. Immigrant workers contribute directly to this expansion, and their wages circulate throughout the economy via rent payments, grocery, transportation, and other purchases. They are not just workers—their incomes permit them to participate in the economy as consumers as well.

Hospitality:  

         Wisconsin’s hospitality industry, especially in tourist hubs like Milwaukee County, the Wisconsin Dells and Door County, depends on immigrant labor. In hotels, immigrants handle housekeeping, laundry, and maintenance. In restaurants, they work as line cooks, dishwashers, and servers. These roles are critical to the state’s tourism economy, which generates billions annually.

         Immigrant workers ensure that visitors have clean rooms, hot meals, and pleasant experiences. Their productivity supports local businesses, attracts tourism dollars, and sustains jobs for managers, marketers, and suppliers.   Their contribution is not subtraction—it’s multiplication.

Macroeconomics: The Whole is Not the Sum of its Parts

         At the macroeconomic level, immigration increases both supply and demand. Immigrant workers produce goods and services that expand supply. They also consume goods and services, which increases demand. This dual effect stimulates economic growth.

         As the economy grows, the Federal Reserve and banking system respond by expanding the money supply to accommodate increased transactions. More money circulates, more businesses open, and more jobs are created. Immigration is not a drain—it’s a driver.

         The proof is in the data. During periods of high-undocumented immigration, unemployment, including here in Wisconsin, did not rise among native-born workers.  In fact, studies from the National Bureau of Economic Research and the Brookings Institution have shown that immigration has a neutral or positive effect on native employment.   The lump of labor fallacy simply does not hold up.

Cultural Enrichment:  

         Immigrants contribute more than labor—they enrich American life. In Wisconsin, immigrant communities bring vibrant traditions, colorful clothing, delicious cuisine, music, and diverse languages. From Mexican taquerias in Green Bay to Hmong festivals in Eau Claire, these cultural contributions make the state more dynamic and inclusive.

Entrepreneurship:  

           In Wisconsin, immigrant entrepreneurs run small construction firms, childcare centers, restaurants, and retail shops. These businesses create jobs, pay taxes, and serve communities.  Immigrants are twice as likely to start a business as native-born citizens. Their ventures contribute to economic dynamism and resilience. They create jobs for native-born workers; they do not take jobs from them.    

Conclusion:  

         The problem with immigration is not the immigrants—it’s our inability to do the math. We cling to outdated notions of job scarcity and ignore the realities of economic growth and expansion. Immigrants—documented or not—are essential to Wisconsin’s economy. They work hard, contribute meaningfully, and make the state stronger.  And, contrary to anti-immigration rhetoric, immigrants are not eligible for Medicare and Medicaid or Social Security benefits, even though they pay payroll taxes that help fund these programs. Immigration is a prime example of where well-established economic principles could inform a winning immigration reform policy—if advocates would fully engage with the subject. Polls consistently show that Americans support immigrant employment and a pathway to citizenship. The economics back this up: immigrants contribute to growth, fill critical labor gaps, and often complement native-born workers rather than compete with them.  A smart, humane immigration policy is sound economic strategy.