Immigration boosts innovation and wages in the US. The positive dynamic impact of immigration on innovation and wages dominates the short-run negative impact of increased labor supply. Increased immigration to the US since 1965 is estimated to have increased innovation and wages by 5%.

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Update, February 27, 9PM ET: This story was updated twice after publish. First at 6PM ET to include a link to and quotes from Hegseth about the designation of Anthropic as a supply chain risk. Later, a quote from Anthropic was added, along with a link to the company’s blog post on the subject.