Loss of migrant workers would trigger productivity losses and a new round of inflationary pricing pressure.
US consumers are accustomed to cheap goods and services, and the economic rationale for large-scale immigration has been largely avoided. In a country that relies on a mobile, low-cost workforce, the loss of migrant workers would trigger productivity losses and a new round of inflationary pricing pressure.
“It would be an economic disaster for America and Americans,” says Zeke Hernandez, an economics professor at the Wharton School of the University of Pennsylvania, of Trump’s deportations threat. “It’s not just the immigrants would be harmed, but we, the people of America, would be economically harmed.”
Hernandez, author of a recent book, The Truth About Immigration, argues that immigrants contribute talent, investment, innovation, consumption and tax revenue. “If you lose those things, there are fewer jobs, the economy contracts and becomes less diversified.”
“Undocumented immigrants make up a huge proportion of household services, manufacturing work, kitchen staff in restaurants. Americans simply do not do those jobs, or there are not enough to go around. But if you lose those key ‘bottleneck’ workers, the native workforce also can’t do their jobs,” says Hernandez.
