“Without the cheap labor of migrants, America faces an economic crisis and inflation.”, — write: www.unian.ua
Donald Trump may not fulfill this promise if things go badly in the economy, say experts / REUTERS photoIf the US president follows through on his promise to deport all illegal immigrants, the US economy will shrink by 8%. Bloomberg writes about this with reference to economists.“President Donald Trump’s immigration policies are likely to have a devastating impact on corporate America’s growth and profits, but that has not yet deterred investors — largely because they don’t believe he will fully follow through on his plans,” the publication said.
According to analysts, mass deportations are likely to deal a painful blow to the most diverse sectors of the US economy – the tourism sector, the service sector, some sectors of agriculture, food production, industry and construction.
However, there is an opinion among experts that in his actions, Trump will still look back at the key indicators of the economy, in particular at the stock market indices, in order not to really harm the economy.
“People are very quick to forget that there is often a lot more talk than actual execution. So we don’t want to over-extrapolate what could be a short-term flash,” said Parnassus Investments Chief Investment Officer Todd Alsten, commenting on the first news of illegal deportations.
In addition to Trump’s penchant for over-promising that can’t be kept, analysts are also somewhat reassured by the fact that many of his actions will be blocked in the courts and face funding problems, as Trump himself has promised to cut federal spending.
According to Jefferies LLC strategists, in theory, Trump can deport 1-2 million illegal immigrants per year. But this is not at all the same as the rapid deportation of 11 million people. That’s how many illegals are believed to be living in the US.
If we assume that Trump does drive 11 million low-wage workers out of the country, it will reduce America’s gross domestic product by 8%, according to Bloomberg Economics. This will lead to a drop in production in industries where a significant amount of work is done by cheap labor. To replace them, businesses will be forced to raise wages, which will make their goods and services more expensive. This will cause a wave of inflation.
Trump took aim at illegal immigrantsAs UNIAN wrote, on the eve of his inauguration, Trump announced the largest deportation in US history. He said border security would feature prominently in his first executive orders.
And indeed, immediately after returning to the White House, Trump gave an order to close the southern border of the United States and begin the deportation of illegal immigrants.
The first batches of illegal migrants began to be flown to Mexico. After Colombia refused to accept a plane carrying Colombian migrants, Trump imposed sanctions against the country.
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