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How the Business Party Adopted Anti-Immigrant Policies That Harm Business

by Hyacinth

Trump’s Immigration Policy and Its Economic Impact: A Closer Look.

Donald Trump’s immigration stance has profoundly reshaped the Republican Party. Once known for its business-friendly approach, the GOP now backs policies that could severely damage the U.S. economy—specifically, the mass deportation of undocumented immigrants.

Trump has promised that if re-elected, he will launch the largest deportation operation in U.S. history, targeting 11 million people with the help of local law enforcement, the National Guard, and the U.S. military.

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A recent Pew Research poll shows that 88% of Trump supporters favor this plan, compared to only 27% of Harris supporters. Conversely, 72% of Harris supporters oppose mass deportations.

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A Shift in Republican Immigration Stance

The GOP’s hardline immigration stance is a relatively new development. Historically, Republican leaders, including Ronald Reagan, took more compassionate approaches. But in 2016, Trump tapped into fears among white workers who were anxious about job losses. He blamed immigrants for taking jobs, a claim that research does not support.

In Trump’s narrative, immigrants became the scapegoats for the complex economic changes impacting the workforce. Ironically, Trump, a businessman, contributed to these problems by outsourcing much of his company’s production overseas, even during his presidency.

Economic Consequences of Mass Deportation

While Trump claims his immigration policy will benefit American workers, economic studies suggest the opposite. A report from the Peterson Institute for International Economics projects that mass deportations would lower U.S. GDP and reduce employment through 2040.

Researchers analyzed the impact of deporting 1.3 million to 8.3 million undocumented immigrants. In both scenarios, GDP and employment drop compared to projections without deportations. The damage could range from a 1.2% to a 7.4% reduction in GDP.

Trump’s assumption that native workers would easily replace deported immigrants does not reflect reality. Historically, businesses struggle to replace such workers. Employers often turn to technology to reduce labor needs or opt not to expand their operations. This results in fewer jobs, especially in key sectors like services, agriculture, and manufacturing.

Additionally, undocumented immigrants aren’t just workers—they are consumers. Deporting them would reduce demand for goods and services, which in turn lowers demand for workers in those sectors. This effect outweighs the job openings created by the deportations.

Inflation and Job Losses

Contrary to Trump’s claims, mass deportation would lead to job losses, not job gains, for U.S. citizens. Deporting millions of immigrants would also drive up inflation. The reduced labor supply would lead to higher prices, affecting all consumers.

Beyond the economic damage, the humanitarian and moral costs of mass deportation are significant. Rounding up millions of people would disrupt families, workplaces, and entire communities.

A Flawed Economic Narrative

Trump’s policies, including mass deportations, high tariffs, and weakening Federal Reserve independence, are projected to harm the U.S. economy. Yet, many Republican voters still support these ideas.

At the core of this support is fear—fear of demographic shifts that challenge the traditional dominance of white, male privilege. Robert P. Jones and other scholars have repeatedly highlighted this fear, which drives support for Trump’s policies even when they contradict economic logic.

Immigrants now make up 14.3% of the U.S. population. Pew data shows that most Trump supporters (92%) believe undocumented immigrants worsen crime, despite research proving otherwise. However, 69% of Trump supporters acknowledge that legal immigrants either improve or do not affect the economy.

Trump’s rhetoric, which often labels immigrants as “rapists and thugs,” exploits this fear, particularly in battleground states like Ohio and Pennsylvania. It’s less about economic policy and more about stoking fear of non-white immigrants.

A Missed Economic Opportunity

If the Republican Party truly prioritized economic growth, it would integrate undocumented immigrants into the workforce as both producers and consumers. That’s how a strong economy functions.

However, under Trump’s leadership, the GOP has chosen a path that prioritizes fear over facts, risking both the moral and economic future of the United States.

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