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The United States saw inflation cool in 2024, but economists warn that President-elect Donald Trump’s plan for mass deportation of undocumented immigrants could greatly affect prices.
“Certainly the economic impacts will be felt,” said David J. Bier, director of immigration studies at the Cato Institute. “There will be supply chain issues. There will be price increases and service decreases.”
Experts worry that deporting such a large number of undocumented immigrants at once could leave a gap in the workforce. TO 2023 study in the Journal of Labor Economics found that 44,000 American-born workers could lose their jobs for every 500,000 immigrants removed from the labor force.
“Immigrants, especially unauthorized immigrants, are much more likely to work in the types of jobs that create the goods and services where we are seeing prices rise,” said Chloe East, a research associate at the National Bureau of Economic Research who He was also one of the researchers behind the 2023 study.
“We can’t say for sure what the effects will be,” he said. “But based on what we know from past mass deportation efforts, it appears that prices of goods and services where unauthorized immigrants are super concentrated, such as construction and agriculture, will likely increase as a result of a mass deportation effort. instead of going down.”
look at the video above to find out what other economic effects mass deportation could impose on the US.