A new report has found that placing immigration restrictions has been detrimental to the American economy. The Brookings Institution estimated that Trump’s June 2020 Executive Order on immigration has cost the American economy $100 billion.
What was the Executive Order?
American President Donald Trump issued an Executive Order in the month of June so as to restrict the distribution of employment-based visas in the U.S. for the rest of 2020. The Executive Order extended to new employment-based visas belonging to the J, H-1B, H-2B, and L categories. The Trump administration reasoned that this Executive Order would protect American workers who have suffered because of the coronavirus pandemic.
However, the President might have caused more harm than good in his effort to create more opportunities for Americans. The Brookings Institution is a leading U.S. research institute and has issued a report stating that the Executive Order could have cost the U.S. economy $100 billion because of the arrival of 200,000 fewer foreign workers and their dependents. Brookings discovered a $100 billion decline in the market valuation of Fortune 500 companies after the announcement of the Order.
It is important to remember that other factors could contribute to the drop in market valuations since they have fluctuated throughout the COVID-19 pandemic. However, the study emphasizes how important immigration is to the American economy.
Canada is doing it differently
Canada, another country that relies on immigration for improvements in the economy, has taken a different route than the United States and is enjoying more success currently. The country is targeting 340,000 new permanent residents every year through its open and friendly immigration system. Many U.S. residents are now choosing to immigrate to Canada.