Managing director of the International Monetary Fund, Kristalina Georgieva, said “abundant labor coming across the border” is having a devastating effect on wages paid to American employees.
“Not everybody who crosses the border adds positively to the economy,” Georgieva told the media at the IMF’s spring meeting.
“But that labor supply also gave to the United States [overall economy an] advantage: Wages are not pushing up, because there is no strong pressure because of lack of labor.”
According to the Wall Street Journal, the annual growth in average hourly earnings dropped to 4.1 percent in March 2024, down 5.9 percent during the COVID pandemic.
If you also factor in inflation, wages in President Joe Biden’s migration-inflated economy have either remained flat or dropped.
Migration also increases inflation, increasing housing prices as more than 7 million southern migrants and at least 2 million legal migrants have been welcomed under Biden.
“Inflation is down but not gone,” Georgieva said at the meeting.
As Breitbart noted:
“But cheap labor is also very good for employers, investors, government tax collectors, and bankers because it grows the number of revenue-generating workers, consumers, and taxpayers — even though Americans’ wages remain flat or decline. That way the overall economy, Wall Street values, and the size of government, all grow from migration — even when Americans’ wages drop. The mismatch “creates a domestic political problem,” Georgieva admitted. Indeed, many polls that show the majority of Americans reject Biden’s high-migration, low-wage “Bidenomics” economy.
Many business leaders, government agencies, and academics admit that wages are reduced by migration. They include independent academics, the National Academies of Science, the Congressional Budget Office, executives, more academics, New York Times reporters, state officials, unions, more business executives, lobbyists, employees, the Wall Street Journal, federal economists, Goldman Sachs, Goldman Sachs again, oil drillers, Wall Street analysts, fired professionals, legislators, construction workers, New York Times subscribers, Robert Rubin, and even by the Bank of Ireland.”
Moreover, the flood of heap workers also drags down the productivity growth needed for middle-class wealth.
Migration allows companies to generate profits from low-productivity jobs, such as labor-intensive manufacturing.
Also, the flood of migrants is driving up housing costs, pushing American families out of high-opportunity cities, according to WBH.org:
A recent report by Boston Indicators found that Massachusetts lost a population about the size of Winchester. The staggering cost of housing in the Commonwealth is driving people out, and younger residents are feeling the squeeze.
“For younger buyers who want to get out of their rental apartment or maybe they’re starting a family, they need more space. … They’re going to look to communities where it’s more affordable,” said Boston Globe Business Columnist Shirley Leung on Boston Public Radio Thursday.
The concerning amount of people moving out across 2021 and 2022 — almost 23,000 — were between the ages 25 to 44. They were predominantly white, middle- and high-income earners and college-educated.
READ: Mexican Citizen Caught with Child Porn Arrested at Border
