Immigration and Inflation

To understand how immigration can lead to inflation we need to understand what causes inflation.  Inflation is the drop in purchasing power of currency.  The purchasing value of money depends on how much money of a country there is and how many valuable goods a country produces.  The value of the all the money a country prints which is the same as its purchasing power is equal to the value of the goods the country produces. We can write this as an equation

purchasing power = value of goods produced/Amount of dollars

If you print money and spend it on something that does not result in there being more valuable goods, than the denominator goes up, the numerator stays the same and the purchasing power goes down.  When purchasing power goes down inflation goes up.

Milton Friedman was an economist who spoke about how immigration affects the economy.  He said that ironically illegal immigration benefitted the American economy more than legal immigration did.  He said that because at the time he said that, if someone came here illegally they couldn't get welfare benefits, they had to work and be productive and that was good for the economy.  If they came here legally they could go on welfare.  When they went on welfare they didn't produce and were a drain on the economy.  During the Biden administration people who come here illegally get benefits from the Federal government. 

Some states and localities – such as California and New York City – have moved on their own to extend government-funded healthcare benefits to illegal aliens. In the Golden State, Democratic Gov. Gavin Newsom signed a measure expanding state Medicaid coverage to low-income, illegal alien adults aged 25 and under. Since 2016, California has allowed unauthorized foreign nationals under 18 to receive taxpayer-funded healthcare benefits. According to the California Governor’s Budget Summary for FY19-20, the plan will cover approximately 138,000 residents at a cost to California taxpayers of roughly $98 million during the first year. Presently, illegal aliens can receive limited Medi-Cal (the state Medicaid program) benefits, including pregnancy and emergency care. If passed, Medi-Cal expansion for illegal aliens would cost California an estimated $3 billion annually, according to a May 2019 analysis by the state’s Senate Appropriations Committee.

In August 2019, New York City launched a program to pay the health-care insurance costs for the 600,000 city residents who lack coverage, including illegal aliens. Starting with the Bronx, the benefit would be expanded to all other NYC boroughs by the end of 2020. Mayor Bill de Blasio said the plan is expected to cost $100 million. Other Democrats have even called for extending universal healthcare, including for illegals, to the whole state of New York. However, some Democrats, including Gov. Andrew Cuomo, fear it could double the state’s roughly $170 billion budget and require another tax increase to pay for it.

When confronted with the hefty price tag, the city’s left-wing Democratic mayor, Bill de Blasio, asserted brazenly that “there’s plenty of money in this world, there’s plenty of money in this country, it’s just in the wrong hands.” Apparently, the “wrong hands” are those of American citizen and legal immigrant taxpayers who would be compelled to foot the bill.  

One is unlimited immigration across our southern border.  The Biden administration knows that people who come across that border illegally will vote Democrat because they will be afraid that a Republican administration will send them back home.  The Biden administration is flying these people all across America, often secretly and at night, and then using taxpayer money to support them.  The cost of housing, flying and supporting the millions of people who have crossed our borders causes inflation. 


The problem with the above video is today illegal immigrants get benefits.  In addition many of them are hostile to the United States.  Some bring in new diseases.


Supply Chain

Immigration hypocrisy