EconomyNov 19, 2024
Trump Has Promised To Deport Millions of Undocumented Immigrants — What Does That Mean For the Economy?
Labor Market
Noah Weidner
Discover
Republicans are cheering, Democrats are fearing, and Wall Street is cautiously optimistic that Donald Trump’s fixation on the stock market will prevent him from playing games with the economy. However, the President-Elect has promised policy changes that could make the markets volatile in the years ahead — starting with immigration.
Trump’s threat: During his campaign, Trump promised to attack immigration head-on — looking to rid the country of the criminals and drug dealers here illegally. While these groups make up a small portion of undocumented immigrants, they aren’t the only ones he plans to deport. As part of Republican immigration “reforms,” the controversial leader has committed to undertake mass deportations — and he’s already making plans.
Trump’s plan to deport millions of undocumented immigrants is framed as a solution to scarcity and safety, with Republicans arguing it would free up resources like housing and healthcare while making the country safer. However, pundits warn of potential economic risks:
Economic costs: The Congressional Budget Office acknowledges that more than 3.3M immigrants who entered the US last year will contribute over $8.9T to GDP through 2034. If immigration were to slow, it could have negative financial effects on the economy, particularly in industries that rely on immigrant labor. As a result, a smaller population could cause GDP growth to suffer, according to many estimates. Making matters worse, the US would need to spend $88B annually — nearly a trillion dollars over a decade — to carry out mass deportations. That sure won’t help the national debt.
