The Chinese Exclusion Act Drags Down Economic Growth in Western States
- The Chinese Exclusion Act outlawed the entry of Chinese-born laborers for ten years, significantly impacting labor markets.
- Research indicates that the departure of Chinese workers led to economic decline and vacancy of white workers in western states.
- Overall, the Act was detrimental to economic vitality, undermining job opportunities that were anticipated to benefit U.S.-born workers.
In the late 19th century, the Chinese were the largest immigrant group in the western United States, primarily arriving through organized efforts by Chinese merchants. The Chinese Exclusion Act of 1882 banned Chinese laborers from entering the U.S. for ten years, profoundly impacting labor dynamics. As Chinese workers left, areas dependent on their labor experienced economic decline, with white U.S.-born workers also vacating these regions. This resulted in a stagnation of economic opportunities in affected areas, as new labor inflow failed to compensate for the departures. Researchers found that the act impeded growth in various sectors, notably mining, until at least 1940, demonstrating that the legislation's premise of favoring native workers led to adverse consequences for the economy as a whole.