More Immigration Will Do Little to Slow U.S. Inflation
Worker shortages and rapidly rising wages are putting strong upward pressure on prices. But importing labor is politically dicey and economically unproductive.
Which side are you on?
Photographer: David McNew/Getty Images North AmericaIs higher immigration the answer to surging inflation, or at least a big part of the answer? One of the side effects of rising prices has been a spike in the number of people saying so. In January, Chamber of Commerce president Suzanne Clark said we should double legal immigration: “It might be the fastest thing to do to impact inflation.”
The National Immigration Forum, which advocates higher immigration, spelled out the logic: We have too few workers, which means employers have to raise wages, which feeds inflation. Labor shortages also kink supply chains, raising prices. More immigration would relieve both types of inflationary pressure.