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Trump’s Immigration Policies Drive Wages Up and Spark Economic Transformation

It is revealing when politicians accidentally share truths, allowing voters insight into discussions typically reserved for private conversations with colleagues or influential donors.

A recent video resurfaced featuring New York Democratic Representative Yvette Clarke acknowledging that her Brooklyn district could accommodate a considerable number of Haitian migrants. She further stated that she requires more people in her district for redistricting purposes. This remark surfaced during a time when former President Joe Biden’s open border policies resulted in a humanitarian crisis, with approximately 11,000 migrants gathered under a bridge in Del Rio, Texas.

Ironically, Representative Clarke’s appeal for noncitizens to enhance Democratic political power echoes historical arguments from the 1787 Constitutional Convention. At that time, Southern delegates advocated for slaves to count as full individuals for representation in the U.S. House, while Northern delegates contended that they should not count at all. The eventual compromise concluded with a count of three-fifths.

Meanwhile, former community organizer and current Los Angeles Mayor Karen Bass perceives federal enforcement of immigration laws as a direct threat to Los Angeles. She has urged Immigration and Customs Enforcement to cease enforcing federal immigration law in the city.

Bass has valid concerns regarding the impact of President Donald Trump’s enforcement of U.S. immigration laws, particularly its potential effect on Los Angeles’s population. During Trump’s first term, California’s population saw a decline attributed to heightened immigration enforcement and stringent COVID-19 lockdown measures imposed by Governor Gavin Newsom. For over two decades, California’s high taxes and exorbitant cost of living have prompted many residents to leave the state, resulting in domestic net outmigration. However, the inflow of foreign immigrants, whether legal or illegal, contributed to a slight population increase.

Proponents of immigration policies, including Bass, argue that undocumented immigrants perform jobs that Americans are unwilling to undertake. Recent employment data, however, challenges this narrative. After five years of growth in foreign-born employment while native-born employment stagnated, statistics indicate a reversal following Trump’s election.

In the most recent month, employment among native-born Americans surged by over 1.7 million. In stark contrast, the number of jobs held by foreign-born workers increased by fewer than 400,000 during the same timeframe.

This trend highlights a significant shift compared to the situation in January when foreign-born workers enjoyed annual job growth that exceeded native-born employment growth by almost 1.2 million. By June, the dynamics had completely reversed, with native-born Americans experiencing gains of nearly 1.4 million more jobs than their foreign-born counterparts.

In addition to improved job availability for native-born citizens, low inflation rates have positively influenced real wages, which are wages adjusted for inflation. While under Biden, the average American’s weekly paycheck rose significantly by nearly 20 percent, inflation outpaced these increases. Over Biden’s four years in office, real weekly earnings lost about 4 percent in purchasing power.

In less than six months, Trump’s economic and immigration policies have helped reverse this downward trend. The average American’s real weekly earnings have increased by approximately 1 percent. When assessing the real median weekly wage, it is currently higher than at any point during the Biden administration.

For blue-collar workers who faced significant challenges under Biden’s inflationary policies and had to incur debt just to manage their expenses, the rebound in real wages under Trump offers much-needed relief. However, it has not fully compensated for the losses experienced over the past four years, given that households still carry 1.2 trillion dollars in credit card debt.

Furthermore, the outlook remains promising despite the pessimistic forecasts from many Democrats, who assert that crops will go unharvested if undocumented immigrants are deported. Ironically, similar claims were made during the period of emancipation, where it was argued that cotton would not be harvested if slaves were freed. Historically, the agricultural sector adapted to major changes, just as it will today with technological advancements and increased productivity.

Indeed, industries heavily reliant on low-skilled labor have suffered from insufficient investment, a trend that will likely change as the artificially inexpensive labor force diminishes. Investment, particularly in the age of artificial intelligence, will enhance efficiency and lead to lower costs for consumers.

E.J. Antoni, Ph.D., serves as the Chief Economist and the Richard F. Aster fellow at the Heritage Foundation, also holding a senior fellowship at Unleash Prosperity.