The mass deportation of undocumented migrants would cause a $275 billion hole in California’s economy.
According to a study published by the University of California, Merced, this scenario would also mean a loss of $23 billion annually in tax revenue.
“These losses underscore the important role undocumented workers play in sustaining economic production in California’s communities and industries. Without these contributions, California would drop two spots in its global economic rankings,” the document warns.
The report details that eliminating the workforce would result in a loss of nearly $153 billion in direct effects such as the value of labor and wages.
While considering indirect factors such as the disruption of supply chains and reduced business activity, the loss reaches $212 billion.
To this figure, we must add an additional $63 billion in induced effects such as household spending on goods and services, housing, food, transportation, and healthcare.
He also explains that undocumented workers generate almost 5% of the state’s Gross Domestic Product (GDP) and contribute more than $23 billion annually in local, state, and federal taxes.
Therefore, he considers their participation in both the local and national economy vital due to their purchasing power and their contributions to the treasury, which can amount to up to $7 billion annually.
“California also pays $83 billion more in federal taxes than it receives, making it a ‘donor state.’ This means that the economic impact of immigration enforcement in California would extend beyond its borders. Beyond the loss of state tax dollars, the loss of federal tax dollars paid by undocumented Californians would have economic consequences for the rest of the country,” he explains.
