Trump’s Immigration Plans Could Backfire on the U.S. Economy and Tank the Job Market

Each candidate has a very different plan for the United States, especially for the on-going immigration issue. Trump says he will deport anywhere between 15 million and 20 million people if he wins the race, but financial experts are worried about what this grand plan will do to the nation’s already unstable economy. 

When asked if Trump would implement the military to enforce this massive deportation, he responded, “It would, [and] when we talk military, generally speaking, I talk National Guard.”

So technically, Trump doesn’t have the legal right to send the National Guard to execute his orders against Americans. But as Trump explained, “[Undocumented migrants] aren’t civilians. These are people that aren’t legally in our country. This is an invasion of our country.”

Some economists argue that the supply of native-born workers simply cannot meet the demand of the nation’s businesses. So without non-American employees, there will be an intense shortage of workers and, therefore, a substantial jump in inflation. 

As chief economist at Moody’s, Mark Zandi, told CNN, “If he follows through in deporting a significant amount of immigrants, that’s going to be very difficult for businesses. It’s going to cause them to raise wages and prices.”

However, according to the experts, that is simply not the case. Because hundreds of thousands of U.S. businesses utilize the millions of migrant workers to keep their business running, without them, there will be thousands of closures. That means fewer jobs for everyone, including native-born Americans. 

Joe Brusuelas, a chief economist at RSM, explained, “In reducing the flow of workers, it’s likely we would face a serious shortage of workers and a renewed bout of inflation. You would drive the unemployment rate down to 3%, and wages would pop. You’d get classic inflation.”

Zandi noted, “Most Americans view [the current] high inflation and high prices as unfair. It’s a rip-off. How is it possible I’m paying more for something – a lot more for something – today than three years ago?”

Additionally, the longer the Federal Reserve borrows money to cover rising inflation, the longer American consumers’ costs will stay high. This is truly a domino effect, and the U.S. economy will continue to worsen over the next several years. 

Zandi explained, “My sense is President Trump’s policies are inflationary. It’s higher tariffs, it’s more deportations. … I think these things are going to lead to higher prices for American consumers.”

And they do have some evidence to support their claim. Since Biden took office, U.S. inflation has been both high and inconsistent. As previously mentioned, Americans are unquestionably spending more on rent, groceries, utilities and absolutely everything else than they were when Trump was in the Oval Office. 

That being said, the fate of America, including its undocumented and documented residents, as well as its economy, is yet to be seen. Whoever does win in November will influence the U.S. economy and inflation rates, for better or for worse.