How The Immigration Surge Boosted The Economy | Global News Avenue

According to a recent analysis, President Donald Trump’s crackdown on the border is killing a surge in immigration that has brought $8.9 trillion to the economy.

In less than a month in the second Trump administration, the new president’s tough immigration policies have been affecting the economy, although the scope is unclear. In his First day in the officeTrump ordered the call to summon immigrants who lack permanent legal status, declared a state of emergency, and sent troops to the border.

Fed Chairman Jerome Powell pointed out in a press conference last month that businesses rely on immigration labor have felt the impact.

“Businesses that rely on immigration labor say it’s getting more and more difficult to attract people,” Powell said. “You haven’t seen this in the aggregate data, but yes, you hear the anecdote.”

Hotels, agriculture and construction are In the industry of hiring Large numbers of immigrants may be the worst impact of deportation and reduction of immigration.

How does immigration affect the labor force?

Data on the crackdown may not be available, but there is a lot of information about the impact of the surge in immigration.

According to a July analysis by the Congressional Budget Office, the surge in immigration after the pandemic has increased the population, increased economic growth and reduced the federal budget deficit because immigrant workers pay more taxes than they get in services.

The general manager of Congress estimates that between 2021 and 2026, the country’s 8.7 million people will reach the country more than 8.7 million people will arrive in the country compared to the stable pandemic rate of about 200,000 people per year. Newcomers include those who enter the country legally, those who enter the country illegally, and those who get visas to enter the country but stay after they expire.

The CBO estimates that a surge in immigration will increase US total economic output by 2034. Immigration is expected to have a positive impact on the federal budget after taking into account economic growth, reducing the deficit by $900 billion during this period.

The analysis does not state the impact on state and local budgets, but points out that local governments usually have to spend more new immigration services on education, health care and other services than what they get in new tax revenues.

According to an analysis by researchers at the Federal Reserve Bank of Kansas City, new workers often work hard to fill in jobs employers after the pandemic.

The analysis found that from the perspective of workers in affected industries, these effects were not all positive: wage growth slowed down in sectors that adopted large numbers of immigration.