Here's why Germany is welcoming migrants with open arms

A German official said Tuesday the country can sustain up to 500,000 or more new asylum-seekers or more every year, a comment that comes as hundreds of thousands of people from war-torn countries across the Middle East and Africa are making their way to Europe to chase the promise of a better life.

But what’s the economic effect of so many migrants streaming into Germany? The country expects to receive 800,000 refugees and migrants by the end of 2015. That could cost as much as 10 billion euros, according to local government estimates. Next year, German officials estimate that as many as 460,000 more people could be entitled to social benefits.

Some anti-immigration groups argue foreigners are a drain on a country’s economy, as they seek to avail themselves of government services before contributing to the state themselves. But Germany has a long history of outsiders representing a net positive for the country’s economy. The 6.6 million people living in Germany with foreign passports paid $4,127 more in taxes and social security on average than they took in social benefits in 2012–generating a surplus of 22 billion euros that year, according to one report. German officials are hopeful that, in the long run, this summer’s new flood of refugees could result in a similar economic gain