Migration policies continue to be a critical point of debate as they influence both local economies and the broader socio-economic landscape. The Economist magazine, a well-known proponent of globalist and pro-migration stances, recently acknowledged an often-overlooked consequence of high immigration rates: the suppression of local wages.
In a tacit admission, the Economist highlighted that as immigration surged in 2022 and 2023, per capita GDP in countries like Britain, Germany, and Canada experienced significant declines. This reduction is attributed to the influx of less skilled laborers who are unable to command higher salaries and inadvertently lower overall wage levels. The magazine suggested that a clampdown on immigration could potentially halt this wage decline in the short term. This assertion counters the longstanding narrative that higher immigration universally benefits economic growth and living standards.
The fact that such admissions come from a pro-migration publication should prompt serious reconsideration among policymakers and the public. The Federal Reserve Bank of Kansas City found a stark deceleration in wage growth in industries with the highest immigrant workforce growth, such as construction and manufacturing, from 2021 to 2023. This wage growth slowdown—a 0.7 percentage point decrease for every 1.0 percentage point increase in immigrant employment growth—underscores the tangible impacts on American workers.
While outlets like the New York Times and Vox continue to downplay these findings, arguing that immigrant labor fills jobs that Americans purportedly do not want, the evidence suggests otherwise. Goldman Sachs’ research contradicts the notion that immigrants do not affect wages, revealing that high levels of migration tend to elevate real estate costs and reduce wage growth. This adds to a growing body of evidence that substantial immigration harms native workers and local economies.
Despite this, the Economist’s article largely advocated for maintaining the status quo of high immigration. It warned its elite readership—comprised of investors and corporate executives—of the potential economic chaos that could ensue from mass deportations or significant reductions in immigration. Such a reduction would likely lead to rising wages and declining rents, conditions that would undeniably benefit American workers but threaten the profit margins of investors.
The federal policy of Extraction Migration, adopted in the 1990s, epitomizes prioritizing corporate interests over those of American workers. This policy undercuts wage growth and inflates housing markets by facilitating a systematic influx of foreign labor to replace high-wage domestic jobs lost to offshore relocation. It drives up rents, impeding native-born Americans’ economic mobility. This policy also undermines innovation and civic solidarity, further eroding the foundational elements of American democracy and prosperity.
Donald Trump’s 2024 campaign has highlighted these impacts, criticizing the Biden administration’s immigration policies for saturating the labor market with low-wage workers, thus directly affecting the wages and opportunities of hard-working Americans. The administration’s approach supports coastal investors and government agencies at the expense of heartland states, exacerbating economic disparities across the country.
Beyond the U.S., similar detrimental effects of high immigration rates are observable in Canada and the United Kingdom, where policy missteps have led to declining living standards and heightened socio-economic tensions. Like the U.S., these countries face mounting pressure to reassess immigration policies to better serve their citizens’ interests.
In light of this, there is a compelling need for a shift in migration policies that acknowledge and address the adverse economic impacts on American workers and prioritize their well-being over the interests of a globalist economic elite. As the upcoming election approaches, these issues will remain at the forefront of national discourse, shaping the future direction of America’s economic and social landscape.
