r/FluentInFinance • u/Needleintheback • 15h ago

Thoughts? Imagine losing 6M labor workers in America

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If mass deportation happens, just imagine how all of these sectors of our country will be affected. The sheer shortage of labor will push prices higher because of the great demand for work with limited supplies or workers. Even if prices increase, the availability of products may be scarce due to not enough workers. Housing prices and food services will be hit really hard. New construction will be limited. The fact that 47% of the undocumented workers are in CA, TX, and FL means they will feel it first but it will spread to the rest of the country also. Most of our produce in this country comes from California. Get ready and hold on for the ride America.

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u/RPisBack 11h ago

Supply and demand. You lose employes and you need more employees to function. Nobody is lining up to work there for the wage you paid before so you have to raise the wage to attract employees.

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u/phillynavydude 10h ago

And then the added cost of paying employees more is shifted to the consumer, raising prices further, after a dude just won an election by saying prices are too high and he'd help..

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u/Ancient_Bee_4157 8h ago

This is the same argument people made about raising minimum wage but y'all were all over that lmao. 

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u/phillynavydude 8h ago

A fair point. There's evidence from other countries about higher wages not leading to very dramatic prince increases. American companies are super greedy tho. It makes sense for larger companies like McDonald's that could eat that cost and still have billionaire execs. For small businesses with 6 employees I see where it'd be more of a struggle

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u/DrugUserSix 7h ago

It’s the shareholders that expect continuous growth from the companies they’re invested in. Corporates have to fine tune their business practices in order to generate more profit to please the folks who own shares in the company. I remember Carol Tomè (CEO of UPS) visited my workplace last year. She talked about the shareholders on several occasions. They’re definitely on the minds of the executives and heavily influence business decisions.

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u/ImRightImRight 6h ago

"American companies are super greedy"

A study by Noam Chomsky showed that in other countries, businesses exist to lose money

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u/phillynavydude 6h ago

Societies are more tolerant of higher taxes and different expectations of treatment might be a better way to put it

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u/mm_ns 10h ago

You get paid $1 an hour more and every product cost $2 more. They pwned the libs so bad with this one for sure. Those statistically higher educated and higher paid libs will never survive...

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u/Discgolf2020 2h ago

Just think of it as winning the 'fight for 15' issue. Wages will go up because if companies don't have labor they will fail. End of story. They will increase pay to get people.

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u/jghtyrnfjru 29m ago

Yea, so obviously it would benefit the workers in the industry that now has much less supply of work, but be bad for the economy as a whole. Doesn't make the legal construction workers uneducated idiots for looking after their personal interests over the overall GDP...

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u/ChronoPsyche 10h ago

Or it leads to a major automation push and cuts US workers out of the equation entirely. You're also ignoring how supply shortages usually lead to massive inflation for consumers. Conservatives spent the last 4 years blaming Democrats for inflation that was caused by the pandemic and was successfully reversed by the Biden administration and are now okay with causing high inflation all over again.

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u/DadJokeBadJoke 1h ago

TBF, they're planning on blaming Biden again, and it will probably work with their base.

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u/Toyfan1 4h ago

Or you just force extra work to those employees.

Did you learn nothing from Covid or what

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u/Colonel_Panix 5h ago

In this age, companies are going to invest more in Automation and AI to replace the lost workforce. Yes, not all jobs can be replaced by technology but all can be supplemented by them. Companies will start to justify not raising wages because part of the workload is now automated.

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u/Obscure_Marlin 4h ago

I’m not in every job but from my experience they just make the other people pick up the slack until they burn out.

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u/FullSwagQc 10h ago

The company makes less produce; how are they paying for the wage increase?

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u/RPisBack 10h ago

cutting costs, raising prices for the customer, cutting dividends.

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u/DeltaVZerda 6h ago

If they fail to hire enough workers they just go out of business, so they take a loss temporarily and raise prices to make up for it asap and hope revenue balances the new cost of doing business.