A gathering orchestrated by Democrats at the U.S. Senate Judiciary Committee bore significant insights into America’s economy. A researcher from a pro-immigration group warned of potentially dire consequences if President-elect Donald Trump followed through on his mass deportation rhetoric. Aaron Reichlin-Melnick, senior fellow at the American Immigration Council, ominously stated, “The president-elect’s mass deportation plans would crash the American economy,” suggesting even attempts would have repercussions.
Indeed, multiple economists echo the sentiment that ejecting millions from the workforce could jolt already tight labor markets. The impact would likely extend to supply chains as well, becoming a costly endeavour for the nation. Industries, particularly in farming, construction, hospitality, and food services, might bear the brunt of such actions.
Supporters of Trump’s policy posit that thinning the number of immigrants accepting low-paying jobs may ultimately boost wages for Americans in those roles. Yet, various studies contest this. They predict these seemingly better-paid jobs might result in heightened consumer prices.
“Building, maintaining, and repairing houses would become more expensive,” Reichlin-Melnick remarked, with costs for groceries, restaurants, travel, and even child care likely following suit. A model drawn by the independent Peterson Institute for International Economics posits that prices could surge by roughly 9%, coinciding with a downturn in U.S. production and employment.
Having a quick look backward to times post-pandemic could offer insights into possible consequences. Federal Reserve Chairman Jerome Powell signalled that “a plunge in immigration” had a hand in an inflation spike. It’s apparent the potential fallout might not be unmatched.
Aside from economic repercussions, questions linger about the operational costs of enforcing such deportations. Estimates reach into the hundreds of billions of dollars, making all of this an expensive venture.
Although uncertainty persists regarding a foreign-born population’s abrupt egress—unprecedented on this scale—Trump has expressed that deporting undocumented immigrants holds such import that financial aftermaths ought not to be priority considerations.
Meanwhile, Trump’s team remains resolute. Transition spokeswoman Karoline Leavitt disputed pessimistic economic forecasts. She asserted in a statement, “President Trump will enlist every federal power and coordinate with state authorities to institute the largest deportation operation… while simultaneously lowering costs for families and strengthening our workforce.”
Additional apprehensions arise as the state of Texas turns a spotlight on unaccompanied migrant children, foreshadowing the impending deportation drive. The humanitarian angle, aligned with economic probabilities, adds a complex layer to an already multifaceted issue of deportation.
