President Joe Biden’s mass migration is driving up inflation, particularly by increasing housing costs, as reported by the Economist, a pro-globalism magazine for elites based in the UK. The influx of migrants is negatively impacting citizens’ rents, per-capita wages, and productivity in countries like the United States, Australia, the United Kingdom, Canada, and others where governments are attracting migrants from developing nations. This surge in immigration is having significant economic consequences, according to the Economist’s article titled “Immigration is surging, with big economic consequences.”
The article acknowledges that immigration’s effects extend beyond GDP, affecting inflation, living standards, and government budgets. The evidence suggests that migrants immediately boost demand for various goods and services upon arrival, leading to price increases, especially in rental housing in countries like Australia and Canada. This phenomenon has not been widely discussed in the US media, including in the GOP’s campaign messaging, which tends to focus on border chaos, crime, and taxpayer burdens associated with migrant welfare.
Despite the lack of focus on the connection between migration, inflation, and housing prices, some media outlets have begun to recognize the impact. For example, Bloomberg noted the link between a larger labor force due to migration, downward pressure on wages, and upward pressure on prices, highlighting the complex economic effects of immigration.
Furthermore, Biden’s administration has acknowledged the role of housing prices in driving inflation, with housing accounting for a significant portion of the consumer basket measured in the CPI. The rising inflation caused by migration has led to interest rate hikes by the Federal Reserve, further impacting housing costs and consumer decisions.
The Economist article also points out that Biden’s migration policy is contributing to a decline in GDP per person, potentially offsetting the benefits to the overall GDP. Additionally, the policy of importing cheap labor through migration reduces the incentive for employers to invest in labor-saving technology, as highlighted by economist Ethan Lewis at Dartmouth University.
Overall, the extraction migration policy adopted by the US government since the 1990s has had far-reaching economic consequences, including reducing wages, subsidizing low-productivity companies, and inflating rents and real estate prices. This policy has displaced many native-born Americans from various sectors, reduced productivity, slowed innovation, and incentivized officials to overlook the negative impact on marginalized communities.
