He says if Trump continues deporting immigrants at the current rate, inflation will go from 2.5% to somewhere close to 4% “by the time it hits its peak early next year.”
Zandi says his stark prediction is based on recent inflation data. “Foreign-born labor force is declining, and the overall labor force has gone flat since the beginning of the year,” he added. “That’s causing tightening in a lot of markets, adding to costs and inflation.”
I’m not so sure… Crops are going unpicked and that isn’t being solved with increased wages. If Trump does his plan allow farms to treat the remainder workers as serfs we get the worse of both worlds: not enough labor to stabilize food prices and an enslaved work force.
I also have an inkling in that direction too, and I’m just not an economist. But when he says deporting immigrants will raise inflation, he is saying it will raise wages based on these same mechanics