John Edgar Slow Horses
Diamond Member
- Apr 11, 2023
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Sight. Trump supports both fossil and green energy.Ending Biden's wasteful green spending and deporting illegal aliens is disinflationary.
Deporting aliens is inflationary.
It can be — especially in the short to medium term. Deporting large numbers of undocumented immigrants tends to reduce the labor supply, particularly in industries that rely heavily on immigrant workers, which can lead to wage inflation and higher consumer prices.
- Labor shortages: Sectors like agriculture, construction, hospitality, and food services often depend on undocumented workers. Removing them can cause production delays, lower output, and increased costs.
- Wage pressures: Employers may need to raise wages to attract domestic workers, especially for physically demanding or low-wage jobs. This can push up prices for goods and services.
- Consumer price increases: Reduced supply and higher wages can lead to inflation, particularly in food, housing, and services.
- GDP impact: Deporting millions of workers could shrink the U.S. economy by 2.6% over 10 years, according to UnidosUS, and cost the government hundreds of billions in enforcement and lost tax revenue.
- Automation boost: Some industries may respond by investing in robotics and AI, which could offset inflationary effects over time but also reshape the job market.
Case Study: Florida’s SB 1718
So yes, while deportation may reduce government spending on social services for undocumented immigrants, the net effect on inflation is often upward, due to labor market distortions and supply chain stress.
- GDP impact: Deporting millions of workers could shrink the U.S. economy by 2.6% over 10 years, according to UnidosUS, and cost the government hundreds of billions in enforcement and lost tax revenue.
- Automation boost: Some industries may respond by investing in robotics and AI, which could offset inflationary effects over time but also reshape the job market.
Case Study: Florida’s SB 1718
A 2024 study found that aggressive enforcement under Florida’s immigration law led to labor disruptions and price hikes, especially in agriculture and construction.
So yes, while deportation may reduce government spending on social services for undocumented immigrants, the net effect on inflation is often upward, due to labor market distortions and supply chain stress.
- GDP impact: Deporting millions of workers could shrink the U.S. economy by 2.6% over 10 years, according to UnidosUS, and cost the government hundreds of billionsin enforcement and lost tax revenue.
- Automation boost: Some industries may respond by investing in robotics and AI, which could offset inflationary effects over time but also reshape the job market.