President Biden’s mass migration policies are having unintended economic consequences that are hurting the very people he claims to champion – young and working-class Americans.
By allowing over 10 million legal and illegal immigrants to enter the country since 2021, the Biden administration has created a “demand shock” in the housing market that is pushing up inflation, interest rates, and the cost of the American dream.
“We’re going to have a hard time” bringing inflation under control if housing prices don’t start dropping soon as expected, warns Austan Goolsbee, president of the Federal Reserve Bank of Chicago.
His concerns are echoed by other Fed officials like Neel Kashkari, who notes that the surge of new immigrants “has likely also increased demand for housing.”
This rapid population growth, driven by government policy rather than organic economic factors, is great news for landlords, real estate investors, and corporate retailers who are enjoying an unexpected boom in consumer demand.
Ric Campo, CEO of a large Texas housing company, admits “there’s been just a whole lot more demand than most people expected.”
But for the millions of millennials and young workers already struggling with stagnant wages and soaring housing costs, Biden’s immigration policies are making the dream of homeownership increasingly out of reach.
BIDEN EXPOSED ๐๐ ๐๐๐๐ฅ
โItโs also true right now Mr. President that voters by a wide margin trust Trump more on the economyโ
โThe cost of buying a home has doubledโ
โReal income, when you account for inflation is actually down since you took officeโ
Biden ๐๐๐๐๐โฆ pic.twitter.com/jyEi4NBbgK
— American Archer (@CalenArcher) May 9, 2024
A new survey by the New York Fed shows renter pessimism about ever owning a home has fallen to an all-time low of 40.1%, down from 44.4% just a year ago.
The economic impact goes beyond housing affordability.
With so much investment capital being diverted away from business productivity and into real estate, some worry the U.S. could fall behind other nations in developing the robotics, AI and technology needed to drive future economic growth and living standards.
BlackRock CEO Larry Fink notes that countries with declining populations, like Japan and China, will “rapidly develop” these technologies out of necessity.
Meanwhile, the “abundant labor coming across the border,” as IMF chief Kristalina Georgieva put it, continues to suppress the wages of American workers.
It’s a troubling dynamic that sucks wealth away from younger generations to enrich older asset holders, while shifting money from innovation to real estate speculation.
As the Fed scrambles to combat the inflation unleashed by these policies, young Americans are paying the price via sharply higher mortgage rates that can add $30,000+ in interest over the life of a typical home loan.
This massive cost is a hidden “immigration tax” no one voted for.
How some people fail to connect uncontrolled immigration with the lack of housing is utterly beyond me.
Reminds me of this moment during the Kingswood campaign…
Listen to what the Green candidate says, just ludicrously stupid. pic.twitter.com/zShqIQSa8G
— Rupert Lowe (@RupertLowe10) May 9, 2024
Whatever one thinks of the broader immigration debate, it’s clear that Biden’s policies are having perverse unintended consequences.
In the name of openness and compassion, these short-sighted measures are making life harder for the very people Democrats claim to represent.
Without a course correction soon, a generation of young Americans may never experience the upward mobility their parents took for granted.
As the 2024 election approaches, the public deserves an honest discussion about these tradeoffs and a set of policies that better balance America’s ideals with the kitchen table realities facing its citizens.
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The American dream shouldn’t be yet another casualty of our broken politics.
