Guest opinion: Refugees are more than just part of a financial equation

Gov. Gary Herbert, center, chats with philanthropist Pamela Atkinson, at Herbert’s left, and others after he was given a lifetime achievement award from Utah’s refugee community during the Refugee Employment Conference at the Sheraton Salt Lake City Hotel on Friday, May 31, 2019. | Scott G Winterton, Deseret News

After reading the news of Gov. Gary Herbert’s letter to President Trump asking for more refugees to be resettled in Utah, I made the error of all errors on the internet: I read the comments section. As one would expect, there were individuals both praising and criticizing the governor, but I was disappointed when I saw many reduce the argument to a mere financial equation.

We need to change the narrative around refugees, because as it turns out, refugees have had an outsized impact on our economy for decades. Refugees start businesses at a rate higher than the U.S.-born population: 13% vs. just 9% of the U.S.-born population (as reported by the New American Economy).

Refugee-founded businesses include Google, WhatsApp and PayPal. The founders of Oracle and Ebay, while not refugees, were both Iranian Americans. Steve Jobs was the son of a Syrian immigrant and Jeff Bezos of Amazon is the son of a refugee who once lived in a Cuban refugee camp in Florida.

There appears to be a magical economic concoction when blending the ambition, hunger and resolve of refugees with the freedom and opportunity of the United States. Over and over again, our world has been changed by U.S. immigrants and their children.

In a recent study conducted by OPEN, an international think tank, it was found that for every dollar invested in a resettled refugee, the U.S. yielded $2 of economic benefit within five years.

Refugees are also often highly skilled and educated and integrate well in our communities. Twenty-seven percent of Syrians who have come to the U.S. have advanced degrees, compared to 10% of the U.S.-born population (according to the Center for American Progress). Eighty-four percent of refugees who have been in the United States for 16-25 years have become American citizens compared to roughly half of all other immigrants.

So how much does resettling refugees end up costing tax payers? A study by the National Bureau of Economic Research showed that, on average, refugees who came to the United States as adults from 2010-2014 paid $21,000 more in taxes than they received in welfare payments. According to the Urban Institute, refugees in 2015 earned $77 billion in income and paid $20 billion in taxes.

However, the life of a newly resettled refugee is not easy. Before even entering the United States, they sign a promissory note agreeing to pay back the cost of their travel, so they are in debt from the first day they arrive in the country. They often spend their first several years working to overcome trauma experienced in their home countries, acquiring new job skills and learning English. Most refugees initially struggle with low employment rates and reliance on government assistance. Nevertheless, after only six years, the same group of refugees surpass U.S.-born Americans in labor force participation and rely less on welfare and food stamps, according to the National Bureau of Economic Research.

The data is abundantly clear: Refugees have higher employment rates, start more businesses, and rely on welfare at lower rates than U.S.-born Americans. Accepting refugees in the United States and in Utah is not only the right thing to do, but is also a particularly good economic investment.

Accepting refugees in the United States and in Utah is not only the right thing to do, but is also a particularly good economic investment.

So, how can we help refugees get on their feet faster and ensure we provide them with opportunities to contribute to our communities?

Support refugee entrepreneurs

Supporting the businesses of fledgling refugee entrepreneurs is tremendously impactful. Example: Support the Spice Kitchen at your next catered event. It is a business incubator which helps refugees and other disadvantaged individuals start their own food businesses.

Find a place for refugees in your business or organization

Find ways to employ refugees. Example: At Cotopaxi we’ve had refugees work in accounting, photography, computer engineering, warehouse work and as thank-you-card writers. We’ve created a Job Club together with the International Rescue Committee where we teach refugees how to create a resume, to do a job interview and to get started with their new lives here in Utah.

Welcome refugees into our communities and homes

We can make sure we welcome refugees to our community events and into our homes. Example: My local neighborhood has invited local refugee families to a Thanksgiving dinner, and my family has hosted refugees in our home, which has been a beautiful experience for us and our children.

Support refugee resettlement organizations

Lastly, you can donate time or resources to the International Rescue Committee or Catholic Community Services, two world-class resettlement agencies that do tremendous work in helping resettle refugees here in Utah.

While the economics create a compelling argument for accepting refugees, as Utahns and Americans, I hope that we will not let economics alone drive our decisions when it comes to compassionately helping those in need. Over the whole of human history, with billions of people having lived on earth, we are among the richest, healthiest and freest to ever live. We have so much, and it is our responsibility to find ways to lift others with the incredible resources we’ve been given.

Davis Smith is the CEO of Cotopaxi, an outdoor gear company with a humanitarian mission. He is on the United Nations Global Leadership Council and holds an MBA from the Wharton School and an MA from the University of Pennsylvania.

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