Study Finds that Without Latinos, the U.S. Economy Would Plummet

Sadly, a stereotypical perception of the Latino community still persists, especially when it comes to large industries and politicians. Latinos are thought of as the last link in the economic and labor chain, but nothing could be further from the truth. If they were an independent country, the GDP of Latinos in the United States would be the fifth largest on the planet, above the United Kingdom, India, France, Italy, Canada, and South Korea, according to a new report.

Researchers Dr. David Hayes-Bautista and Dr. Matthew Fienup of California Lutheran University and UCLA Health released a report on May 16. The report, which was funded by the Bank of America Charitable Foundation, analyzed economic data for Latinos over the last decade. They concluded that this community is vital to sustaining the labor market and the country’s economy.

Economic contribution of Latinos

The economic impact of Latinos was $2.8 trillion in the year 2020. Among the ten largest GDPs in the world, Latino GDP is the third fastest growing over the last decade, only behind China and India. The growth of U.S. GDP without Latinos ranks fifth.

Moreover, between 2010 and 2020, the population of this community grew 2.6 times faster than the non-Latino population in the United States. Latino personal income and consumption grew three times faster than that of non-Latinos over the same period.

Why is this important?

In economics, it is known that the ingredients that lead to the growth of a country’s Gross Domestic Product (GDP) are more capital (both physical and human), a workforce that is ready to produce, and greater productivity. Latinos offer all of this. Let’s look at some data.

Population growth n Despite accounting for only 18.7% of the population, Latinos are responsible for 65% of the country’s population growth, five times greater than that of non-Latinos in the last decade.

Diego Barahona