Spiga

Corp.'s getting hooked on the buying power of 11 million undocumented immigrants

The economic impact could be significant. While most analysts peg the number of illegal immigrants at 10 million to 11 million, a recent study by Bear Stearns Asset Management (BSC ) concluded that data on housing permits, school enrollment, and foreign remittances suggests there could be as many as 20 million. Either way, experts agree that the undocumented, a majority of whom are Hispanic, are one of the nation's largest sources of population growth. They add 700,000 new consumers to the economy every year, more even than the 600,000 or so legal immigrants, according to Pew's new study. What's more, 84% of illegals are 18-to-44-year-olds, in their prime spending years, vs. 60% of legal residents. Corporate sales and profits will get a shot in the arm if more of them move out of the cash economy, put their money in banks, and take out credit cards, car loans, and home mortgages. U.S. gross national product could get a boost, too, since consumers with credit can spend more than those limited to cash. MORE

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