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Home » Immigration

Look who is driving up inflation

Submitted by Rick Honcho on Saturday, February 23 2008No Comment

How are illegal immigration and inflation tied together?

In 2005, Bear, Stearns Senior Managing Director Robert Justich and a team of his economists issued a study on the impact of illegal immigration on U.S. economic indicators.

They found that undocumented immigrants account for some 8 percent of American workers, a much higher figure than the government reports. Justich’s report explained that the number of people counted in productivity calculations is artificially boosted when there are more people working than are reported to the government.

American productivity is based on the amount our economy produces divided by the number of people working. If there are a lot more people working than the government takes into account, this makes productivity look artificially high. It can also help to conceal underlying inflation.

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