The Economics Show
The Economics Show

What does a second Trump presidency mean for immigration? With Michael Clemens

Michael Clemens of George Mason University is an expert on the economics of migration, and a scholar of its history. With the newly elected President Trump promising to deport millions of immigrants, we thought it was the perfect time to talk about what illegal immigrants mean to the present economy

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Financial Times HostMichael Clemens Guest

Topics Discussed

Episode Summary

Executive Summary: The episode examines Trump’s immigration agenda through an economic lens, arguing that a second term would likely be far more restrictive than the first and could affect legal migration, birthright citizenship, asylum/refugee policy, and mass deportation. Guest Michael Clemens contends these policies would be legally expansive, socially disruptive, and economically harmful, especially by reducing labor supply in key industries and raising inflation.

Main Topics: Trump’s first-term vs second-term immigration restriction level (Priority: 5/5): Clemens rates Trump’s first term as highly restrictive and says the proposed second term would be even more so, with broader and deeper enforcement and exclusion policies. Legal immigration restrictions and birthright citizenship (Priority: 5/5): The discussion covers proposed limits on H-1B visas, family sponsorship, and efforts to challenge or denaturalize birthright citizenship, which Clemens frames as a constitutional and historical break with U.S. norms. Mass deportation and the scope of unauthorized migration (Priority: 5/5): Clemens distinguishes between targeting undocumented migrants and the broader plan to strip status from parolees and potentially others, emphasizing how many U.S. citizens would be affected through family ties. Legal and administrative feasibility of enforcement (Priority: 4/5): The episode explores whether Trump could carry out sweeping enforcement using ICE, the National Guard, and possibly military personnel, and notes the broad executive discretion granted by U.S. immigration law. Economic effects of deportation and immigration restriction (Priority: 5/5): Clemens argues deportation and reduced immigration would destroy jobs, weaken key industries like agriculture and care work, and likely increase inflation rather than help U.S. workers. Political appeal of anti-immigration rhetoric (Priority: 4/5): The conversation explains why Trump’s messaging resonates: voters are frustrated by border chaos and inflation, and politicians often channel those frustrations toward immigrants. Policy alternative: enforcement plus expanded legal channels (Priority: 4/5): Clemens argues that the historically effective approach is not restriction alone but a combination of tougher enforcement and more lawful visas and entry pathways.

Key Arguments: Trump’s proposed second-term immigration policy is substantially more restrictive than his first-term agenda, extending beyond illegal migration to legal pathways and citizenship rules. Birthright citizenship is a long-standing constitutional principle rooted in post-Civil War reforms, and attempts to eliminate or denaturalize it would face legal contention but may be enabled by a sympathetic Supreme Court. Mass deportation would not only target unauthorized migrants but also lawfully present people whose status could be revoked, plus U.S. citizens indirectly affected through family separation and labor disruptions. The administration has a track record of turning difficult-to-administer policies into workable ones, as shown by the Muslim travel restrictions and refugee exclusions in the first term. The U.S. likely has just over 12 million unauthorized immigrants; removing them at scale would affect 4.4 million U.S. citizen children with at least one unauthorized parent. Economic evidence, including evaluations of Obama-era enforcement, suggests deportation reduces employment rather than increasing it; workers in mixed-status sectors create each other’s jobs through specialization. Key U.S. industries such as farming, dairy, construction, and child care rely on unauthorized labor because legal visa channels do not adequately supply workers for those jobs. Tightening enforcement without expanding legal channels can worsen chaos and labor shortages; the most effective historical solutions combined enforcement with broader lawful migration opportunities. McKibben’s modeling suggests large deportation scenarios would shrink GDP and raise inflation, making the policy economically self-defeating if the goal is to help American workers.

Data Points: Trump first-term immigration restrictiveness: 7/10 - Clemens’ rating of Trump’s first-term immigration policy on a scale from least to most restrictive in U.S. history. Trump second-term projected restrictiveness: 8–9/10 - Clemens’ estimate of the direction of Trump’s proposed second-term immigration agenda. H-1B policy: Severe restrictions - Trump is described as advocating sharp limits on high-skill nonimmigrant worker visas. Family sponsorship categories: Multiple categories targeted for elimination - Includes parents of U.S. citizens and spouses/dependent children of lawful permanent residents. Unauthorized immigrants in the U.S.: Just above 12 million - Latest estimate cited from the Center for Migration Studies. Parole entrants: 1.3 million - People allowed in under parole whose status could be revoked, making them deportable. U.S. citizen children with unauthorized parent: 4.4 million children - Represents 6% of all children under age 18 in the U.S. Share of all children affected: 6% - Children who are U.S. citizens and have at least one unauthorized parent. Obama-era mass deportation program size: About 500,000 deportations - Secure Communities is cited as a major deportation program under Obama. Jobs eliminated per deported workers: 8.8 U.S. jobs per 100 workers deported - Estimate from Chloe East and co-authors on employment effects of county-level deportation rollout. Time horizon in deportation study: 4 years - Length over which the county-level employment effects were measured. U.S. national debt under first Trump administration: Rose by $7.8 trillion - Used to argue that fiscal cost is unlikely to constrain spending-heavy enforcement plans. Annual deficit change under Trump: From 3% to over 5% - Referenced as evidence of willingness to finance current priorities with borrowing. Lawful Mexican visa expansion in 1950s: 150% increase - Presented as a historical example of enforcement paired with expanded legal channels. Border crossings in early 2010s: 30,000–40,000 unauthorized crossings per month - Used as a comparison point for border flow levels. Recent border crossings: About 175,000 per month - Used to illustrate the scale of current border “chaos.” Inadmissible entries last December: 10,000 per day - Clemens cites this as a peak indicator of border disorder. McKibben GDP impact, low deportation scenario: -1.2% of GDP by 2028 - Projected four-year macroeconomic effect of deporting 1.3 million workers. McKibben GDP impact, high deportation scenario: -7.4% of GDP by 2028 - Projected four-year macroeconomic effect of deporting 8.3 million workers. McKibben long-run U.S. jobs impact: -0.6% of all U.S. jobs - Estimated long-term employment effect in the high deportation scenario. McKibben inflation impact, low deportation scenario: +0.5% in 2026 - Projected inflation effect after reduced labor supply. McKibben inflation impact, high deportation scenario: +3.5% - Projected inflation effect under a larger deportation campaign.

Pivotal Quotes: "The administration did establish a task force for denaturalization of people who had received birthright citizenship due to their concerns about the legal status of their parents." — Michael Clemens: On the Trump administration’s first-term approach to birthright citizenship and denaturalization. "We are talking about a vast militarized sweep of public and private places across the United States, rounding up millions of people a year into camps for processing." — Michael Clemens: On the campaign’s stated mass-deportation plan and its scale. "What’s deeply, deeply unpopular in both parties, it is chaos." — Michael Clemens: On why anti-immigration rhetoric resonates politically despite its harshness.

Implications: Listeners should expect a much harsher immigration regime if Trump’s promises are implemented. The likely result, per Clemens, is labor shortages, disrupted families, higher prices, and weaker GDP—unless enforcement is paired with expanded legal migration channels.

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About The Economics Show

The Economics Show with Soumaya Keynes is a new weekly podcast from the Financial Times packed full of smart, digestible analysis and incisive conversation. Soumaya Keynes digs deep into the hottest topics in economics along with a cast of FT colleagues and special guests. Come for the big ideas, stay for the nerdery.Soumaya Keynes is an economics columnist for the Financial Times. Prior to joining the FT she worked at The Economist for eight years as a staff writer, where as well as covering trade, the US economy and the UK economy she co-hosted the Money Talks podcast. She also co-founded the Trade Talks podcast. Hosted on Acast. See acast.com/privacy for more information.

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