Immigration Restriction and the Great Depression’s Economic Lessons

Bishop Nicholas DiMarzio reports that historical immigration restrictions contributed to the Great Depression by reducing the annual migration rate from over 800,000 people before 1922 to approximately 300,000.

This decline in arrivals caused a collapse in new construction because there were fewer immigrants seeking rental housing. Labor shortages in the manufacturing, construction, and agricultural sectors led to decreased salaries and a smaller labor pool. Additionally, slower population growth meant fewer consumers were available to purchase American goods, further depressing the economy.

DiMarzio connects these historical lessons to modern labor market effects caused by ICE enforcement. He cites studies from the Wharton School and the National Bureau of Economic Research regarding these effects, as well as a Brookings Institute study. That study found that in 86 surge cities involving 52,000 arrests, job losses extended beyond those removed; American-born workers and permanent residents lost nearly four times as many jobs as the individuals deported.