Peter Schiff says the US could pair open borders and economic growth only by dismantling its welfare state. The Congressional Budget Office projects the immigration surge will add $1.2 trillion in federal revenue and cut deficits by about $900 billion by 2034.
Schiff points to the Gilded Age: US wages rose about 50% from 1860 to 1890, and nearly 12 million immigrants arrived between 1870 and 1900. But immigration was not fully unrestricted; it was less regulated than today, particularly for Europeans, and restrictions included the 1882 Chinese Exclusion Act. The safety net he wants dismantled reaches far beyond immigrants: nearly one-third of the US population received assistance from at least one means-tested program in 2022, and children were 54% of those receiving benefits from three or more such programs.
Evidence for a welfare “magnet” is limited: a 1998 study found immigrants receiving benefits were more concentrated in states with more generous aid, but that does not show benefits drew them to the US. A 2024 Pew survey found Asian immigrants often cited family, economic opportunity and education. Many lawful immigrants face a five-year wait for benefits such as SNAP and Medicaid; the CBO estimates the immigration surge directly cost state and local governments a net $9.2 billion in 2023.
