Trump’s mass deportation plan will have a big impact on inflation

Inflation is set to slow in the U.S. through 2024, but President-elect Donald Trump’s plan to mass deport undocumented immigrants could have a significant impact on prices, economists warn.

“There are certainly going to be economic impacts,” said David J. Bier, director of immigration research at the Cato Institute. “There will be supply chain issues. There will be price increases, reductions in services.”

Deporting such a large number of undocumented immigrants at once could create a huge gap in the workforce, experts said. A 2023 study in the Journal of Labor Economics It found that 44,000 native-born workers could lose their jobs for every 500,000 immigrants removed from the labor force.

“Immigrants, especially unauthorized immigrants, are more likely to work in the types of jobs that create goods and services where we see prices rise,” said Chloe East, a research associate at the National Bureau of Economic Research. He was one of the researchers behind the 2023 study.

“We can’t say for sure what the damage will be,” she said. But based on what we know from past mass deportation efforts, goods and services in which unauthorized immigrants are concentrated, such as construction and agriculture, are more likely to rise in value than fall under mass deportation efforts. “

Look Video Above to find out what other economic effects the mass evacuation will have on the US