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How immigration affects inflation

The Squeeze: Economist Adam Smith rightly acknowledged the link in 1776 and politicians should take note
March 12, 2024

Taken from a purely economic perspective everyone should want immigration into their country.

In both the US and UK, immigration is a sensitive topic. There are record amounts of illegal immigrants entering the US and they have become pieces in a game of political chess. Donald Trump recently pressured the Republicans to block President Joe Biden’s border deal, as Trump doesn’t want this to be solved so he can use it as a line of attack in the upcoming election.

However, it is not just illegal immigrants that have received political backlash. During Trump’s time as President, he banned legal immigration from Muslim countries and complained about immigrants from African countries which he referred to as “shitholes”. He even issued an executive order to deny visas to highly skilled workers in the tech sector, thinking it would mean more high-paying jobs for Americans, rather than realising it would undermine America’s world-leading tech sector.

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