Trump's deportation plans may spike inflation, warn experts
Experts are warning that the mass deportations planned by Trump, anticipated since the start of his presidency, could impact inflation and cause price increases in the USA, reports CNBC.
In 2024, inflation in the USA decreased, but economists caution that the proposed mass deportations of immigrants residing illegally in the country by President-elect Donald Trump might affect prices and the overall economy. Trump and his appointees in the incoming administration have announced that deportations are set to begin on a large scale immediately following his inauguration as President of the USA in January.
"Certainly the economic impacts are going to be felt," said David J. Bier, Director of Immigration Studies at the Cato Institute. "There’s going to be supply chain issues. There’s going to be increases in prices, decreases in services," he added.
Trump and mass deportations of migrants. The economy will feel it
There is concern that deporting such a significant number of undocumented immigrants could lead to a noticeable gap in the labour market. According to a 2023 study in the "Journal of Labor Economics," it was found that 44,000 American workers could lose their jobs for every 500,000 immigrants removed from the labour market.
"Immigrants, especially unauthorized immigrants, are much more likely to work in the types of jobs that create the goods and services where we’re seeing the prices go up," said Chloe East, a researcher at the National Bureau of Economic Research and co-author of the 2023 study, to CNBC.
Although the precise effects cannot be predicted, East notes that based on previous experiences with mass deportations, the prices of goods and services that immigrants influence, such as construction and agriculture, are likely to rise.
