In President Trump’s first week back in the White House the commander in chief has been signing executive orders left and right as he shapes his new administration. One major focus is on immigration.
On this week’s special episode of Capitol Gains, anchors Madison Mills, Julie Hyman, and Washington Correspondent Ben Werschkul talk with Wharton Professor Zeke Hernandez about Trump’s immigration policies and how they could impact the economy in the future. Martinez says the economy could feel it in a few areas:
Businesses would be impacted by due to labor shortages. Hernandez says, “We’re already hearing businesses say that.”
Due to America’s low birth rate and high retirement rate, companies may contract their output or take their jobs overseas.
Because of these policies, businesses could also experience a decline in aggregate demand, which means fewer consumers are buying their products and services.
He also notes inflation could be an issue with companies forced to reduce output and increase prices due to a lack of workers.
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Government at the city, state, and federal levels will also feel the impacts of these immigration policies because they would be collecting fewer taxes due to fewer workers and consumers in the economy.
To learn more, check out the clip above and listen to the full episode of Capitol Gains here.
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Capitol Gains is Yahoo Finance’s unique look at how US government policy will impact your bottom line long after the Presidential election polls have closed.
This post was written by Lauren Pokedoff.