U.S. Sees Inflation Cool in 2024, But Experts Warn Mass Deportation of Undocumented Immigrants to Have Significant Economic Impacts
Inflation in the U.S. cooled in 2024, but experts are warning that President-elect Donald Trump’s plan to deport a large number of undocumented immigrants could have significant economic consequences. According to David J. Bier, director of immigration studies at the Cato Institute, the mass deportation of immigrants could lead to supply chain issues, increased prices, and decreased services.
One of the primary concerns is the potential impact on the labor force. A 2023 study in the Journal of Labor Economics found that 44,000 U.S.-born workers could lose their jobs for every 500,000 immigrants removed from the labor force. Immigrants, particularly unauthorized immigrants, are more likely to work in jobs that create goods and services, which could lead to price increases, according to Chloe East, a research associate at the National Bureau of Economic Research, who was part of the study’s research team.
While it’s difficult to predict the exact effects of a mass deportation, the study suggests that prices in industries where unauthorized immigrants are concentrated, such as construction and agriculture, are likely to rise as a result of a mass deportation rather than decrease. The plan’s effects on the U.S. economy are likely to be far-reaching, and experts are warning that it could lead to a range of negative outcomes.