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What “Mass Deportation” Would Mean for the Economy Donald Trump has pledged to remove all undocumented immigrants from the U.S.—but such a policy could have a slew of unintended consequences.

 


Economic Impact of Mass Deportation Policies

  1. Trump's Proposal: Former President Donald Trump has pledged to conduct a "mass deportation" of immigrants if re-elected, potentially targeting both undocumented and some legal residents.
  2. Cost of Deportation:
    • A one-time operation to deport 13.3 million people could cost at least $315 billion.
    • A decade-long operation deporting 1 million annually could cost $88 billion per year.
  3. Economic Impact:
    • Significant loss of tax revenue and contributions to Social Security and Medicare.
    • Major workforce reductions in key industries:
      • Hospitality: 1 in 14 workers
      • Agriculture and construction: 1 in 8 workers
    • Potential milk price spike and $32 billion economic cost to the dairy industry.
    • Reduction in GDP: 4.2% to 6.8% annually (American Immigration Council estimate).
  4. Labor Market Effects:
    • Jobs often filled by undocumented workers (e.g., housekeeping, construction, agriculture) may remain unfilled.
    • Potential for increased automation in agriculture.
    • Cascading effects on higher-skilled positions held by U.S.-born workers.
  5. Childcare Industry Impact:
    • Reduction in childcare workers could lead to higher childcare costs.
    • Potential decrease in labor market participation of college-educated U.S.-born mothers.
  6. Long-term Economic Consequences:
    • Undocumented workers contributed $5 trillion to U.S. private-sector GDP over 10 years.
    • Immigration is expected to be the primary source of population growth, crucial for long-term economic growth.
  7. Personal and State-Level Impacts:
    • Emotional stress and income loss for mixed-status families.
    • Significant effects on states with large undocumented populations (e.g., California, Texas, Florida).
  8. Public Opinion:
    • Mixed views: 54% support mass deportation, but 70% support admitting immigrants to address labor shortages.
    • The sharp partisan divide on the issue.

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