Source: Fortune.com
Summary
The Trump administration’s immigration crackdown has led to a sharp decline in net international migration to the US, which could worsen the country’s national debt. According to census data, net migration turned negative last summer, with more people leaving the US than coming in. This decline is expected to weigh heavily on labor supply, debt sustainability, and long-term economic growth. Researchers at Deloitte’s Global Economics Research Center warn that the US native-born population is also in free fall, below the replacement rate needed to maintain population numbers. Immigrants, who account for 19% of the workforce, have been a key driver of economic growth, contributing over $650 billion in taxes in 2023.
Our Reading
The numbers tell one story. The US is facing a demographic crisis, with a shrinking workforce and a declining population. The Trump administration’s immigration crackdown is exacerbating this issue, leading to a decline in net migration and a potential worsening of the national debt. The Deloitte report notes that immigration tends to have a positive effect on the federal deficit, allowing revenue to rise faster than expenditure. The absence of immigrants would likely lead to a significant increase in national debt, as they contribute more in taxes than they receive in benefits.
Original observation: The US is trading a fiscal engine for a deportation campaign.
Author: Evan Null
