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U.S. inflation has eased in 2024, but economists warn that President-elect Donald Trump’s plan to deport undocumented immigrants en masse could have a big impact on prices.
“Certainly, the economic impact will be felt,” said David J. Beer, director of immigration studies at the Cato Institute. “There will be problems with supply chains. There will be an increase in prices, a decrease in services.”
Experts worry that deporting so many undocumented immigrants at once could leave a hole in the workforce. A 2023 study in Journal of Labor Economics found that 44,000 US-born workers could lose their jobs for every 500,000 immigrants excluded from the labor force.
“Immigrants, especially undocumented immigrants, are much more likely to work in the kinds of jobs that create goods and services whose prices are rising,” said Chloe East, a research fellow at the National Bureau of Economic Research who was also one of the researchers behind 2023 study.
“We cannot say exactly what the consequences will be,” she said. “But based on what we know from past mass deportation efforts, it seems that goods and services where unauthorized immigrants are highly concentrated, like construction and agriculture, are likely to see price increases as a result of mass deportation efforts. rather than decrease. “
Follow up video above to learn what other economic consequences mass deportation could have on the US
