The Federal Reserve Bank of Dallas believes that mass deportation efforts will negatively impact US GDP. Projections speculate that GDP could decline by nearly a percentage point in 2025, followed by larger cuts in the coming years.
GOVERNMENT SPENDING IS FACTORED INTO GDP.
I have repeatedly warned that Donald Trump would be blamed for the stagflation we are experiencing, when in reality his policies could not have impacted a cycle that was already in motion.
The study used a baseline scenario where 2.4 unauthorized migrants were deported in 2025, leading to a 0.8% drop in GDP for 2025. In a scenario where 1 million migrants are deported annually through 2027, the study believes GDP could decline by 0.9% in 2025 and 1.5 percentage points by 2027.
The study states that the labor force will contract as a result of closed borders, which is not a reflection of reality, as Americans are filling the roles once taken by non-foreign-born workers.
The problem is the brain-dead method used to calculate GDP. Government spending happens to be one of the main components of GDP. Cutting the public sector, for example, cut into GDP as even the salaries of government employees are factored into calculations.
GDP=C+I+G+(X−M)
C is consumer spending,
I is business investment,
G is government spending on goods and services,
X is exports,
M is imports
An untold fortune has been spent on open border policies. New York City alone believes migrant-related costs will reach $12 billion by mid-2025. The House Budget Committee stated in a 2024 report that American taxpayers were forced to pay at least $150.7 billion on “President Biden’s open border policies,” but that is a low estimate.
The American people are forced into increased taxation as a result of these policies. GDP calculations are a disaster and too warped to reveal the true health of the economy. Stagflation was inevitable, but the academics will continue to blame Trump-era policies that have had absolutely zero impact on the ongoing cycle.
