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Study of Correlations Between Multiculturalism and Economic Growth in the United States

November 21, 2019

 


Abstract: In our modern world, the concept of multiculturalism is not only prevalent but also encouraged. To have people from a diversity of backgrounds coexisting in one single area was an unfathomable concept nearly a century ago. Multiculturalism at its root refers to an amalgamation of different cultures and a single bounded territory; the inhabitants are protected by right to practice and enact on their views—regardless of whether they are in line with those of the majority. Everyone makes up a part of the whole. This paper discussed the effects of political and geographical isolation and cultural diversity in different eras and countries, as well as the details of successful heterogenous makeup of America together with the changes in the population of the United States and the impact of multiculturalism on the economy. The “ethnic minority” and mixed-race population is increasing every year in America, along with the increase in bilingual populations. Finally, this research states the reasons why diversity makes us smarter and more effective: racially diverse groups share information better, diversity enhances creativity, different points of views leads to broader thinking, having different points of views gives you new platforms and tactics of analyzing/solving a problem, and diversity encourages you to push the boundaries and reconsider your perception.

Keywords – Multiculturalism, cultural diversity, political and geographical aspects, and economic growth


Introduction: The United States, in particular, is a paradigm of a multicultural nation. Home to millions of immigrants, the US serves as a beacon of potential. Since the second half of the twentieth century, multiculturalism has quickly risen among various nations. Naturally, debates have also arisen regarding the productivity of such a concept; some believe there are various negatives to the rise of multiculturalism. But, research has revealed that diversity and co-existence can actually give rise to many positive events within a nation. According to Vincent Parillo, the diverse, heterogeneous makeup of the US is steadfast and integral to the nation. As a nation’s strength lies in its citizens and inhabitants, the US serves as a model for the true power of the people. The diversity of the US constitutes a large part of the American identity; from inception to modern times immigrants have contributed largely to the country’s evolution.

Some counter that diversity is a product of economic development rather than a contributor, that multicultural populations are attracted to certain locations because of affluence or gained economic success. An important new study by economists Quamrul Ashraf of Williams College and Oded Galor of Brown University, "Cultural Diversity, Geographical Isolation and the Origin of the Wealth of Nations," was recently released by the National Bureau of Economic Research. The paper carefully follows the role of geographic isolation, proximity, and cultural exchange in regard to economic development—spanning from pre-industrial times to the modern era. The study shows that "the interplay between cultural assimilation and cultural diffusion have played a significant role in giving rise to differential patterns of economic development across the globe." Diversity in fact gives way to economic growth whereas homogeneity enacts the opposite effect.

During the formative years of the United States’ industrialization, immigrants contributed greatly to the workforce. They helped create transportation systems, cities, and labor unions. Similarly, immigrants now also strengthen American economy. The United States is influential on the world stage due to the immigrants who have devoted themselves to advancement and the potential to be greater. They have brought billions of dollars with them — boosting the nation’s economy via business, consumerism, and labor.


References

[1] Clayton-Pedersen and Musil, 2008
[2]https://www.psychologytoday.com/us/blog/life-bilingual/201809/the-amazing-rise-bilingualism-in-the-united-states
[3] “Prosperity 2050.” Center for American Progress, 2011
[4] “Current Population Survey, 1968 through 2015”, Annual Social and Economic Supplements, U.S. Census Bureau, 2015
[5]“Multiculturalism: America's Competitive Advantage.” The Atlantic, Morgan Stanley Smith Barney LLC, 2016, www.theatlantic.com/sponsored/morgan-stanley-wealth-management-2016/multiculturalism-americas-competitive-advantage/1007/.
[6] https://www.nielsen.com/wp-content/uploads/sites/3/2019/04/the-multicultural-edge-rising-super-consumers-march-2015.pdf