The LuLac Edition #4,737, May 11th, 2022

 

WRITE ON WEDNESDAY

Our “Write On Wednesday” logo.

Everyone is complaining about inflation. It seems to me the loudest ones are tose who are against immigration. They’re running our neighborhoods, crime, violence, getting free phones and they can even vote. A recent article by Times Shamrock points out why immigration or lack thereof might have something to do with inflation.

LOW MIGRATION, HIGH INFLATION

 

Pandemic-induced economic disruptions not only have driven inflation, but have illustrated the degree to which immigrant workewrs play a crucial role in restraining inflation.

There are many reasons for current inflation. A principal driver is that diminished consumer demand during the height of the COVID-19 pandemic prompted companies to slow production and eliminate jobs. Now, with demand approximating pre-pandemic levels, production and supply-chain efficiency have yet to catch up, increasing prices. Add trillions of dollars pumped into the economy by the federal government to counter the pandemic, and inflation probably was inevitable.

It is clear that vast reductions in immigration during the pandemic have contributed heavily to work force shortages in some industries, helping to prolong supply problems and to keep prices high.

The Associated Press reported recently that the United States has 2 million fewer immigrants than it would have had without the pandemic. That has created major labor shortages in agriculture, construction, and some elements of manufacturing and transportation.

It’s not a short-term problem. Because of a sharp decline in the U.S. birth rate over the past 20 years, many economists forecast that the pool of native-born workers will decline rapidly beginning in 2025.

Meanwhile, the United States continues to treat immigration as a matter for crisis management, rather than adopt a comprehensive immigration policy that is fair to prospective immigrants while driving U.S. population growth and economic security.

“At some point we either decide to become older and smaller or we change our immigration policy,” said economist Douglas Holtz-Eakin, president of the conservative American Action Forum.

The smart choice is better immigration policy.