The massive deportation of undocumented migrants as planned by President Donald Trump will become a nightmare for U.S. agriculture and construction, pushing food and housing prices up, and hurting the American economy overall.
The aggressive tariff policy, if enforced, will pale in comparison with the loss of migrant workers who have filled in more than half of jobs that require physical human labor, according to American economist Paul Krugman, the 2008 Nobel Memorial Prize in Economic Sciences.
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In an analysis published on his Substack page, Krugman exposes in detail and with figures how Trump's cruel deportation crackdown is going to “hurt everyone” in America and “set off a devastating chain reaction.”
Cracking down data from the U.S. Bureau of Labor Statistics, Department of Agriculture, Pew Institute, and the National Association of Homebuilders, Krugman predicts that Trump's avalanche of anti-immigrant policies is going to "hobble" the nation's ability to produce food or build homes.
In his research, the Yale and MIT graduate warns that "blocking imports of foreign-made goods and deporting foreign-born workers are, in some ways, similar in their economic implications… But tariffs are about dollars and cents; a crackdown on immigrants is about people. And because it’s about people, Trump’s hostility to immigrants is likely to do far more damage, humanitarian and even economic, than his trade policy."
The principal danger comes from the “forces of hatred” which Trump has unleashed and which he “won't be able to put back in the box even if he decided to do so.” The cruelty employed by the new administration will destroy innocent people and does absolutely nothing to help the rest of citizens.
According to Krugman, immigrants without permanent legal status constitute roughly 5% of America's workforce. Losing a large fraction of these workers would be a serious blow to the economy, especially because immigrants, legal and not, play a much bigger role in some industries and occupations than they do in the economy as a whole.
The agriculture industry will be decimated if these people are forcibly removed. "Push those workers out, either by actual deportation or detention or simply by creating a climate of fear, and just watch what happens to grocery prices," Krugman wrote.
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Ironically, Donald Trump ran on lowering grocery prices but instead he is going to skyrocket them.
"So, at a time when Americans are still angry about the price of groceries and, with more justification, about the unaffordability of housing, Trump’s immigrant crackdown seems set to hobble food production and home construction," Krugman stated.
Dr. Paul Krugman gained notoriety in 2011 for making the most accurate predictions regarding the evolution of the U.S. and global events.
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