Thursday, January 30, 2025

Potential Effects of Deportation on The Economy


    President Trump's campaign promise to follow through with mass deportations of

undocumented immigrants as of 2025 has officially started. Columbia recently

accepted the president's flights of undocumented immigrants after Trump

threatened Tariffs. According to Michael Gapen (Morgan Stanley’s

chief US Economist), the impact of this could slow down the economy's

future growth. 

  

 Previous studies found that anti-immigration laws set in place in Arizona between

2008 and 2015 showed that each year of deportations GDP decreased by 2%

per year. Predicted results of the future economy from Morgan Stanley GDP will

grow at a rate of 1.9% which is low compared to the 2.5% growth observed in

2023. Deportations could also potentially cause a slowing of employment rates,

as well as a decrease in productivity rates according to JPMorgan’s Michael

Feroli. 


Megan Leonhardt (2025), Trump’s Immigration Crackdown Could Play Havoc with the Economy, Barron’s. https://www.barrons.com/articles/trumps-immigration-crackdown-could-play-havoc-with-the-economy-f4c41411

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