President Joe Biden’s migration crisis raises the mortgage rates that burden young couples and families, according to the president of the Federal Reserve Bank of Minneapolis.
“While the long-run effect of increased immigration on inflation is unclear, immigrants nonetheless need a place to live, and their arrival in the U.S. has likely also increased demand for housing,” said Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said on May 7.
In turn, he said, mortgage rates are nudged upwards with higher interest rates, saying, “Perhaps a neutral [interest] rate for the housing market is higher than before the pandemic.”
Kashkari is a member of the Federal Reserve, which is now raising interest rates to reduce the unpopular inflation caused by the federal government’s deficit spending.
But since 2021, Biden’s deputies have also worsened inflation by importing roughly ten million legal, illegal, and quasi-legal migrants.
The migrants are intended to fill jobs, reduce wages, spur the consumer economy, and boost rental rates. The human-resources stimulus is good for investors who want more consumer demand and lower wages, and for progressives who want more government dependents and potential voters.
But this huge inflow has inflated housing prices, used autos, and other consumer items while also cutting wages for Americans.
“Abundant labor coming across the border” is reducing the wages paid to Americans, Kristalina Georgieva, managing director of the International Monetary Fund, said in April.
“Across the G10 [group of wealthy countries] … there is no doubt immigrants need things as soon as they arrive, boosting demand [for used autos, food, etc.],” the Economist magazine admitted. “Nowhere is this clearer than in the case of rental housing, which is in short supply across the anglosphere.”
Productivity growth came in at a 0.3% annual rate in Q1. It is very volatile so here are annualized growth rates in rough order of meaningfullness:
— Jason Furman (@jasonfurman) May 2, 2024
Since 2019-Q4: 1.5%
Last two years: 1.2%
Last year: 2.9%
Last quarter: 0.3% pic.twitter.com/Xqpgqfwpux
The chaos caused by mass migration is forcing an elite rethink of economic policy.
“The big winners are the countries that have shrinking populations … [such as China and Japan who] will rapidly develop robotics and AI and technology,” BlackRock founder Larry Fink said at an April 29 event hosted by the World Economic Forum in Saudi Arabia. He continued:
If a promise of all that [technology] transforms [per person] productivity, which most of us think it will [emphasis added] — we’ll be able to elevate the standard living in countries, the standard of living for individuals, even with shrinking populations.
Democrats, however, prefer to stimulate the nation’s consumer economy with more migrants.
Migrants — not voting Americans and their children — “are what makes us [economically] strong,” Biden told a May 1 fundraiser for pro-migration groups at the elite Mayflower Hotel in Washington, DC.
Extraction Migration
Since at least 1990, the federal government has relied on Extraction Migration to grow the consumer economy after it helped investors move the high-wage manufacturing sector to lower-wage countries.
The migration policy extracts vast amounts of human resources from needy countries. The additional workers, consumers, and renters push up stock values by shrinking Americans’ wages, subsidizing low-productivity companies, boosting rents, and spiking real estate prices.
The economic policy has pushed many native-born Americans out of careers in a wide variety of business sectors, reduced Americans’ productivity and political clout, slowed high-tech innovation, shrunk trade, crippled civic solidarity, and incentivized government officials and progressives to ignore the rising death rate of discarded, low-status Americans.
I interviewed an amazing young woman who has been on and off the streets since she was 14. She immediately shocked up to it’s the meanest/scariest man to protect her. He was though very mean to her and much older. pic.twitter.com/VQTqj8Sjto
— Kevin Dahlgren 🥾 🥾 (@kevinvdahlgren) May 3, 2024
The policy also sucks jobs and wealth from heartland states by subsidizing coastal investors and government agencies with a flood of low-wage workers, high-occupancy renters, and government-aided consumers. Similar policies have damaged citizens and economies in Canada and the United Kingdom.
The colonialism-like policy has damaged small nations and has killed hundreds of Americans and thousands of migrants, including many on the taxpayer-funded jungle trail through the Darien Gap in Panama.
