How Immigration Affects Food Prices: Insights from Econlib

High food prices have been a significant issue for the Biden administration, and it remains to be seen if the new administration will face similar challenges. Recently, Bloomberg highlighted Florida’s tough immigration policies. The law, SB1718, requires businesses to confirm all employees can legally work in the U.S. or risk hefty fines. On January 13, Governor DeSantis suggested further tightening these laws.

Farmers are worried about a shortage of workers for harvesting fruit and vegetables, a task often done by undocumented workers. Many laborers have already left Florida, fearing deportation. Farmers like DiMare have experienced the consequences firsthand, leaving crops unharvested due to the lack of workers.

The article raises concerns that if undocumented workers are pushed out, food production may shift to countries with cheaper labor. This situation could lead to higher food prices as import costs rise.

Currently, there’s a wave of populism around the world. It’s popular to expel undocumented workers, impose tariffs, and run large budget deficits. However, this trend does have its downsides, particularly concerning inflation.

Housing prices are another area greatly affected by these economic shifts. The impacts on supply could be significant. The Department of Homeland Security estimates there are around 11 million undocumented immigrants in the U.S., many of whom are of working age. Notably, nearly 14% of the construction workforce is undocumented, making a potential mass deportation concerning for the housing market.

If deportations occur, experts warn that labor and material costs for builders will likely rise, further shrinking the already limited housing supply.

The conversation around deporting undocumented workers isn’t simply black and white. There are pros and cons to this approach. However, history shows that voters often focus on the immediate costs of policies rather than the potential long-term benefits, as President Biden learned with his green energy initiatives. It’s a crucial consideration for any administration moving forward.