The Cost of Mass Deportation: America’s Economy

Mass deportations are often framed as a solution to immigration challenges, but they would wreak havoc on the U.S. economy. Immigrants, including undocumented workers, are deeply woven into the fabric of industries essential to our nation’s stability and growth. Agriculture, construction, hospitality, healthcare, and technology all rely heavily on immigrant labor. Deporting millions of workers from these sectors would not only create labor shortages but also disrupt supply chains, increase costs for businesses and consumers, and stifle economic growth. The economic ripple effects would touch every corner of society, harming both businesses and individuals alike.

Consider agriculture: undocumented immigrants make up an estimated 50% of the agricultural workforce. Removing these workers would leave crops unharvested, drive up food prices, and force many farms to shut down. Similarly, industries like construction—already facing worker shortages—would see projects delayed or canceled, further driving up housing costs in an already strained market. The hospitality industry, reliant on immigrant labor for roles in hotels, restaurants, and tourism, would struggle to fill positions, leading to reduced services and higher prices.

One week after the election, Houston Ethnic Media held a Reflections and Insights briefing. Carla Brailey, Rice University’s Baker Institute for Public Policy Fellow & Associate Professor of Sociology at Texas Southern University, along with Kristin Etter, Director of Policy and Legal Services at the Texas Immigration Law Council, and Jeronimo Cortina, Associate Professor in the Department of Political Science at the University of Houston spoke on what the outcome meant for Texans particularly immigration, reproductive rights, and the ethnic vote overall. Some of the highlights, were the 600,000 alone that are lawfully in Houston under DACA (a status given to them under the Obama Administration) that could add to the Millions losing their status over night Jan 21st, as President-Elect Trump stands on mass deportations being a priority his first day in office. At the time of this briefing, many felt as if Texas would be the epicenter of these deportations; however, the Trump administration named Chicago (home to 1.7 million immigrants) as it’s ground zero.

When asked for one big takeaway, Dr. Brailey spoke on how mass deportations will collapse our economies. How so? Beyond the immediate labor crisis, mass deportations would result in a significant loss of tax revenue. Undocumented immigrants contribute an estimated $12 billion annually in state and local taxes, not to mention the billions they pay into Social Security and Medicare systems they may never benefit from. Removing this revenue would strain public services, exacerbating deficits in states already struggling to balance budgets. Moreover, the economic activity generated by immigrant households—through consumption, entrepreneurship, and investment—would plummet, further destabilizing local economies.

The human cost of deportation policies is undeniable, but so too is the economic fallout. Addressing immigration challenges requires pragmatic reform that recognizes the vital role immigrants play in sustaining our economy. Instead of pursuing mass deportations, policymakers should prioritize pathways to legal status, worker protections, and fair immigration processes. A balanced approach would strengthen the economy, safeguard industries, and uphold the values that define America as a land of opportunity.

What do you think?