Economic experts 'confident' a key component of Trump’s platform could spark a recession

14 May 2024

During an interview with Time Magazine last month, Donald Trump emphasized his plans to deport "15 million and maybe as many as 20 million" people — using the National Guard, and possibly the US military — if elected in November.

According to a Tuesday, May 14 CNN report, economists believe the former president's mass deportation plan will "backfire."

Brookings Institution economic studies senior fellow Wendy Edelberg told the news outlet "she is 'confident' an immigration crackdown like the one Trump proposes would have 'negative' effects on the economy."

Furthermore, economic experts also say the MAGA hopeful's plan could tank the economy "by worsening worker shortages, reigniting inflation and forcing the Federal Reserve to keep borrowing costs high for even longer."

Edelberg told CNN there's evidence that immigrants have added to "a sharp increase in demands in recent years" for a number of businesses.

"That’s the kind of thing that could spark a recession," Edelberg said of Trump's ploy. "I don’t mean to suggest this would be a cataclysmic recession, but this would be a very abrupt reduction in aggregate demand. Generally, that’s not the kind of thing that our economy likes."

RSM chief economist Joe Brusuelas told CNN one issue with the ex-president's vision "is that the supply of native-born workers simply cannot meet demand."

Brusuelas added, "We need to import workers. If either party oversteps in reducing the flow of workers, it’s likely we would face a serious shortage of workers and a renewed bout of inflation. You would drive the unemployment rate down to 3% and wages would pop. You’d get classic inflation."

CNN's full report is available here.

From Your Site Articles