President Joe Biden’s immigration policy is leading to an increase in mortgage rates, which is putting a strain on young couples and families, according to the president of the Federal Reserve Bank of Minneapolis.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, stated that while the long-term impact of increased immigration on inflation is uncertain, immigrants still need housing, leading to a higher demand for housing in the U.S. Consequently, mortgage rates are rising due to higher interest rates, with Kashkari suggesting that the neutral interest rate for the housing market may now be higher post-pandemic.
The Federal Reserve, including Kashkari, is raising interest rates to combat inflation caused by the government’s deficit spending. However, since 2021, Biden’s policies have exacerbated inflation by importing millions of legal, illegal, and quasi-legal migrants.
These migrants are being brought in to fill jobs, lower wages, stimulate consumer spending, and increase rental rates. While this may benefit investors and progressives looking for more government dependents and potential voters, it has driven up housing prices, used car prices, and other consumer goods while also decreasing wages for American workers.
The chaos resulting from mass migration is prompting a reconsideration of economic policies among elites. While some countries with declining populations are investing in technology like robotics and AI to boost productivity and living standards, Democrats in the U.S. continue to push for more migrants to fuel the consumer economy.
The extraction migration policy implemented by the U.S. government since 1990 aims to boost the consumer economy by bringing in additional workers, consumers, and renters, ultimately pushing stock values up but shrinking wages, reducing productivity, and diminishing political influence for Americans. This policy has had far-reaching consequences on various sectors, jobs, innovation, trade, and civic solidarity in the U.S., while also negatively impacting heartland states and small nations and resulting in the loss of life among Americans and migrants.
In summary, Biden’s immigration policies are having a significant impact on the economy and are leading to changes in economic strategies and a reshaping of the workforce landscape.
