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📰 MASS DEPORTATION COULD HURT U.S. ECONOMY MORE THAN TARIFFS Trump’s policies on immigration could have more of an economic impact than his promised tariffs, Capital Economics’ Neil Shearing writes. He argues that plans to remove as many as 1 million undocumented immigrants each year could end up reducing economic growth “by around 1% a year.” Immigration, he says, “has been a key reason why economic growth has kept relatively buoyant.” Higher labor costs in sectors heavily reliant on migrant labor “would face a rise in costs that is likely to pass through into higher prices.” Moreover, immigrants “spend too, and so demand would also weaken.”

November 18, 2024
Frank

MASS DEPORTATION COULD HURT U.S. ECONOMY MORE THAN TARIFFS

Trump’s policies on immigration could have more of an economic impact than his promised tariffs, Capital Economics’ Neil Shearing writes. He argues that plans to remove as many as 1 million undocumented immigrants each year could end up reducing economic growth “by around 1% a year.” Immigration, he says, “has been a key reason why economic growth has kept relatively buoyant.” Higher labor costs in sectors heavily reliant on migrant labor “would face a rise in costs that is likely to pass through into higher prices.” Moreover, immigrants “spend too, and so demand would also weaken.”