Hey Senator, Will Restrictive Immigration Policies Shrink The Economy?
TRILLIONS. The Congressional Budget Office (CBO) reported last month that the recent, so-called migrant surges will grow the U.S. economy by a staggering $7 trillion. So this week we asked seven senators if they were concerned that tightening immigration restrictions will shrink the economy. First, some context —
MONEY QUOTE. CBO Director Phillip L. Swagel, in his own words: “In our projections, the deficit is also smaller than it was last year because economic output is greater, partly as a result of more people working. The labor force in 2033 is larger by 5.2 million people, mostly because of higher net immigration. As a result of those changes in the labor force, we estimate that, from 2023 to 2034, GDP will be greater by about $7 trillion and revenues will be greater by about $1 trillion than they would have been otherwise. We are continuing to assess the implications of immigration for revenues and spending."
EDITOR’S NOTE. Because immigration is such an emotional topic for many, including us, we think it’s important to include verbatim the question we asked and the responses we got from Senators.
OUR QUESTION. The CBO has said the migrant surge will grow the economy by $7 trillion over the next decade. Are you concerned at all that tightening immigration restrictions will shrink the economy?
SENATORS RESPOND
Sen. Tim Kaine (D-VA)
They have already [shrunk the economy]. I mean the inability to get a bipartisan deal going back to 2013 has already had that effect that employers around Virginia, almost all now are saying please do immigration reform.
Sen. Bob Menendez (D-NJ)
There's no question that it will [shrink the economy]. I mean, these are the people who, even during the pandemic, were out there performing the duties that no one else was. If they go back into the shadows and ultimately are afraid, the economy will contract. There's no question about it. And at a time in which the Fed is deciding whether we're going to hit the benchmarks for interest rates, an economic contraction can be a negative influence.
Sen. Rick Scott (R-FL)
In the long term, we need to have legal immigration. We need to get rid of the drugs, the cartels, the illegal immigration. I'm from an immigration state, but it's gotta be legal. We've gotta vet people. We've grown our economy in Florida through legal immigration, not illegal immigration.
Sen. Ron Johnson (R-WI)
I'm concerned of unrestricted illegal immigration being a clear and present danger to this nation. Can you imagine how the economy would contract with a terrorist attack? So I'm all for legal immigration but we won't be able to achieve it as long as President Biden has his open border policy.
Sen. Chuck Grassley (R-IA)
What I'm interested in is how we get 1 million people illegally entering the country. It's against our laws for people to come here without our permission. The president should be enforcing the laws. And then in conjunction with that, I'm willing to admit based upon studies when there's labor shortages or professional help in this country that's in short supply, we need to increase the numbers. But that's legal immigration. I can't give you any opinion that would justify people illegally entering our country.
Sen. Ted Budd (R-NC)
I'm not concerned about [shrinking the economy] because there's so much that comes along with it including the loss of life to fentanyl. How much does that take away from the economy? It's priceless. It's heartbreaking.
Sen. John Cornyn (R-TX)
I don't know what CBO report you're talking about. I'm sorry.