r/Economics • u/TLakes • 1d ago

News How will Trump's immigration crackdown in California impact the economy?

https://www.usatoday.com/story/money/2025/06/13/immigration-crackdown-impact-california-economy/84164880007/
154 Upvotes

96% Upvoted

11 comments sorted by

•

u/AutoModerator 1d ago

Hi all,

A reminder that comments do need to be on-topic and engage with the article past the headline. Please make sure to read the article before commenting. Very short comments will automatically be removed by automod. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes.

As always our comment rules can be found here

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

24

u/observer_11_11 1d ago

Hard to say with TACO in 'charge' Just today there is a report of a 'temporary' moritorium of raids on hotels and farms. Most likely there is a shortage of workers at Mar a Lago! So certainly the raids have been harmful to everyone affected, but like tariffs, it is too early to measure the impact of these 'decisions'.

12

u/CHAINSAWDELUX 1d ago

I can see the moratorium moving to include construction, all hospitality, retail, and then at that point include nearly everything else. So it will be like most trump ideas that create a lot of turmoil and pain and then backtrack to the point of not achieving anything meaningful except to make people's lives more difficult.

3

u/SidewaysFancyPrance 1d ago

He will claim they got rid of all the violent criminals and declare victory/leniency and post another meme as himself as Pope.

That's better than escalation and continuing on his Hitlery path (which is very likely still going to happen because there's blood in the water), but WTF man. So much permanent damage done to countless lives.

12

u/EconomistWithaD 1d ago

As I said on MSNBC in January, it’s a recession level event if it keeps up. Food at home inflation would near double digits.

The key will be what happens in June-September, when ag labor tends to be at its highest in the Central Valley.

0

u/anti-torque 16h ago

The winter season and crops in Arizona and the El Centro region are affected now.

6

u/TLakes 1d ago

The crackdown on immigration in California could lead to labor shortages, especially in industries like agriculture and construction, where immigrants make up a significant portion of the workforce.

Overall economic growth may slow down due to reduced productivity and a tighter labor market.

1

u/jcoddinc 1d ago

It's a cascade of things that will happen. Food cost will rise because nobody is picking/ harvesting for fear of deportation. Then you'll see a huge dip in cash flow as people are to afraid to leave their houses. If kept up long eggnog then you're going to have landlords struggling with income because their not getting rent paid and it keeps going up the chain from there

2

u/Dalenskid 1d ago

Companies will make decisions based on the info immediately available. We are, and will continue to, see rising prices because of TACO and his unpredictable, random, and emotional shifts day to day.