Mon Sep 09 16:13:21 UTC 2024: ## Immigration Boosting US Economy, Dampening Inflation, Says Expert
**New York, NY** – A surge in immigration over the past two years has helped stabilize the post-pandemic labor market and prevented rampant wage inflation, according to Michael Arone, chief investment strategist at State Street Global Advisors. Arone argues that the influx of workers has helped moderate wage growth, which in turn has contributed to slowing inflation.
Arone points to the fact that wage growth for low-skill service positions, which peaked at 8.5% in 2022, has now fallen to 4.2%, a trend he attributes to increased immigration. This moderation in wage growth, he says, is a key factor in the deceleration of the Consumer Price Index, which has fallen from 9.1% in June 2022 to 2.9% in July.
“Immigration is a political football,” Arone wrote in a commentary, adding that “many people underappreciate the role that increasing immigration has played in stabilizing the post-pandemic labor market without fueling inflationary pressures.”
While both presidential candidates have vowed to restrict future immigration, Arone maintains that the economic benefits of immigration outweigh the political rhetoric. He highlights the positive economic impact of increased immigration, including increased entrepreneurship, innovation, consumption, and fiscal contributions.
Arone’s analysis suggests that the economic benefits of immigration are often overlooked in the political debate. His insights highlight the complex economic factors at play and challenge the notion that immigration solely impacts the labor market.
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