Will Deportation Hurt The Economy?

Here are a few questions:

Q: Will a return to products being made in America result in higher prices for consumers due to higher labor costs? – Pete S.

A: No.There are several reasons for this. Better paying jobs in the U.S. will increase savings and tend to lower interest rates. Larger-scale production in the U.S. will also result in economies of scale that reduce unit costs. Finally, foreign investors will need dollars to invest in U.S. manufacturing and to get over high tariff walls. That will make the dollar stronger, which will reduce the dollar prices of those foreign inputs that will still be needed. Reduction in the trade deficit does not mean the end of trade. Some imported components will always be needed, and a strong dollar makes those cheaper. The lower costs from lower interest rates, a strong dollar and economies of scale will offset higher wage costs.

Q: Do you see silver as good an investment as gold for those of us who can’t afford gold at current prices? – Molly P.

A: Silver is a good investment both because it will follow the price of gold higher and because it can be more practical than gold when it comes to buying groceries and other necessities if the power grid goes down or the monetary system collapses. I consider a certain number of one-ounce American silver eagles to be as important as a flashlight, water and food in a crisis.

Q: In what ways do you see mass deportation of illegal immigrants impacting the U.S. economy? – Bobby S.

A: It will not impede the economy. The deportations will begin with criminals and terrorists who do not contribute to society and in fact cause enormous harm. Then the deportations will continue with illegals who currently receive free housing, free cell phones, pre-paid debit cards and free medical care. These illegals cost far more than they produce. It will be impossible to deport all ten million illegals who entered under Biden. Several million will remain in all events and they are likely to be the most productive and resourceful of the group. Deporting the criminals, terrorists and freeloaders will only help the economy.

That’s it for this week. Thanks for all your questions sent in.