Hispanics are the fastest growing ethnic group in this country. However, many organizations still have…
In the United States, the Hispanic community has a growing presence as statistics show that the population surpassed 60 million in 2019. This is up from just over 50 million in 2010. As the population grows, the impact the Hispanic community has on all aspects of life is going to be more profound especially when talking about the economy.
The Hispanic community has contributed greatly to this country’s economic growth in several different ways. We’re going to explore these and look at how their impact will continue to grow in the years to come.
Wages and Spending Power
One of the major ways that a community impacts the economy is through its spending power. The Hispanic community is a large contributor when it comes to this piece of the pie. When you consider that in 2015 Hispanic households earned more than $902 billion, they will have a lot of spending power to contribute to the economy. The numbers show that Hispanic spending power reaches more than $125 billion per state. From those earnings, they also contributed more than 25 billion dollars to the nation’s Medicare program as well as more than 101 billion dollars to Social Security.
Entrepreneurship and Investment in the Community
The Hispanic community has also had an impact when it comes to investing in communities around the country, including Raleigh. Many Hispanics who are immigrants come to the United States and start their own businesses. Cities around the country have benefited from Hispanic entrepreneurs who have set up shop in their downtown areas, helping with much-needed revitalization. Research shows that between 1990 and 2012, the number of Hispanic entrepreneurs has tripled. They have grown from 577,000 to more than two million across the country. Hispanic-owned businesses include waste management, construction, food services, health care, and more.
With all of those businesses opening their doors comes plenty of job opportunities. These opportunities not only help the Hispanic community but also every person living in the area where that new business has set up shop. By creating more jobs with these businesses, the Hispanic business owners are helping entire communities thrive while watching their businesses grow.
Besides offering jobs, many Hispanics contribute to the economy by providing much-needed labor. More than three out of every four Hispanics are part of the workforce, making them a critical component of the U.S. labor picture. Their talents and skills range from agriculture to construction, transportation, trade, and more.
U.S. Tax Revenue
A large part of the U.S. economy revolves around tax revenue. Nationwide, it’s estimated that Hispanic households contribute $139 billion in federal taxes and nearly $76 billion in state and local taxes. This money is used for education, infrastructure, community programs, and much more. When you consider the amount of money and various areas that taxes play a role in, the impact the Hispanic community has on the national economy, as well as local economies, is profound.
When talking about the Hispanic community’s impact on the economy, you must also take into consideration voting power. Many of the Hispanics in America are U.S. citizens, giving them the right to vote and have a say in who helps to run the economy and develop plans that shape the nation.
Statistics show that Hispanic voter participation surged 30 percent in 2020 compared to 2016 with more than 16 million Hispanics exercising their right to vote. This shows that Hispanics want to have their voices heard in who represents them in the government. The people they vote for will have an impact on the economy.
When you’re talking about the Hispanic community’s impact on the economy, it’s important to consider several factors. Job opportunities, entrepreneurship, spending power, and tax contributions are among the major areas that the Hispanic community has impacted. As the population continues to grow, the contributions and influences in these areas and others can only be expected to expand as well.