Immigration has become a major election issue in recent years, and economist and Nobel Laureate Paul Krugman has weighed in on the merits of concerns surrounding it. In a post on X, formerly Twitter, Krugman stated that there is a strong case that immigration has been a key part of President Biden’s economic success.
Krugman argues that immigrants have played a significant role in bringing down inflation. He points to the fact that inflation has decreased partly because of strong labor force growth, which is mainly attributable to foreign-born workers. According to Krugman, immigrants have not stolen jobs from Americans as widely perceived. He highlights that the US labor market is tight and that the country has full employment, as shown by the positive consumer assessment of the labor market.
Krugman asserts that employment is being constrained by supply, not demand, and that foreign-born workers expand the supply. He believes that immigrants are complementary to native-born workers, allowing the economy to run hotter without inflation and ultimately raising native-born employment. To support his argument, Krugman shares a chart from the St. Louis Federal Reserve, which shows that the relative wages of foreign-born workers have fallen slightly compared to native-born workers since the pandemic.
In addition to the short-term benefits, Krugman emphasizes the long-term advantages of immigration in helping fund programs like Social Security and Medicare. He concludes by stating that immigrants are beneficial to the US economy, while nativists who oppose immigration are detrimental.
The importance of the immigration issue is evident in public discourse and social media. Tesla CEO Elon Musk recently criticized the Biden administration’s focus on legalizing a large number of immigrants, accusing the president of encouraging illegal immigration for political gain. A poll conducted by Redfield & Wilton Strategies in partnership with The Telegraph showed that immigration was the second-most important electoral issue for voters in Arizona. Furthermore, a Monmouth University poll revealed that Biden’s approval rating hit a rock bottom due, in part, to his immigration policy.
It is clear that immigration is a complex and contentious issue that has significant implications for the economy and politics. As the election approaches, it will continue to be a topic of debate and discussion, with differing opinions on its impact and importance.
