I understand that there's a lot of opinions on immigration. Without looking into anything, its somewhat a devils deal in that it seems we may need it as a country in the current state but most would probably prefer it was a more legal process.
Say immigration fell greatly, how would that affect business? Would the restaurant industry essentially shutdown (from ether not having enough workers or skyrocket prices? Construction? Cleaning jobs/manual labor? Any insight would be appreciated.
Edit: I was originallly implying what would it look like if illegal immigration went way down. I understand that there are a lot of people trying to enter the US as their home country situation is pretty bad/horrible, but more looking for an understanding of how essentially illegal labor effects the econonmy.
Your answer is going to depend highly on the education level of the immigrants and the industry you’re asking about. Not a one size fits all answer.
Based on the insights from the Wall Street Oasis discussions, the impact of a significant reduction in immigration, particularly illegal immigration, on businesses can be multifaceted. Here's a breakdown of how such a scenario could affect various industries:
Labor Shortages: A decrease in immigration could lead to labor shortages in industries heavily reliant on immigrant workers, such as restaurants, construction, and cleaning services. These sectors often depend on the labor provided by immigrants to fill roles that are less appealing to the native workforce.
Increased Labor Costs: With a reduced pool of workers, businesses may have to increase wages to attract domestic workers, leading to higher labor costs. This could result in increased prices for services and goods, affecting the affordability and potentially reducing consumer spending in these sectors.
Impact on Construction and Real Estate: Specifically, in the context of construction, a decrease in immigrant labor could slow down projects due to labor shortages, increasing the costs of construction and rehabilitation. This could have a ripple effect on real estate development and housing markets, potentially leading to higher costs for buyers and renters.
Economic Growth: Immigrants contribute to economic growth not only as workers but also as consumers. A reduction in immigration could lead to decreased consumer spending, affecting businesses across various sectors. Immigrants also play a role in innovation and entrepreneurship, and a decrease could impact the overall dynamism of the economy.
Wage Growth and Rent Increases: While there might be an argument that reduced immigration could lead to wage growth for low-income, uneducated classes due to less competition for jobs, this could also support rent increases, affecting the affordability of housing for these very groups.
Broader Economic Implications: The discussions also touch on the broader economic implications of immigration policies, including the potential for a hot economy in the short term due to increased spending but followed by a recession as the economy reaches a tipping point.
It's important to note that these effects are interconnected, and changes in immigration policy can have wide-ranging implications for businesses, workers, and the economy as a whole. The discussions on Wall Street Oasis highlight the complexity of the issue, suggesting that the impact of immigration on business is not straightforward and involves a balance of various factors.
Sources: How does Trump influence your opinion about RE developers / investors?, Good For The Economy | The Daily Peel | 4/6/22, Protectionism, what is it and how does it impact trade?, Like Randy Marsh Says | The Daily Peel | 6/9/2023, How will the results of the election affect Wall Street and the overall economy?
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