The following article by Mark Humphery-Jenner was posted on the Conversation website February 27, 2017:
President Donald Trump has pledged to deport several million undocumented immigrants and recently set a plan in motion targeting those with criminal records (of any kind).
While the ethical issues with mass deportations have received lots of attention, the economics haven’t been explored as comprehensively. And the costs of mass deportations will likely be significant.
These include the impact on economic growth and the labor force, which have received some coverage, but there are several other factors that ought to be considered, such as the debts and dependents left behind by those deported and the costs of giving them the boot.
Undocumented immigrants and debt
To start with undocumented immigrants are able to amass debt in the U.S., and being deported makes it less likely they’ll honor it. This imposes risks on the financial system and on lenders in particular. Continue reading “Why mass deportations are costly and hurt the economy”