Brace for Impact? Economist who predicted one of the biggest crashes in history says immigrant deportations could trigger a faster recession, and Donald Trump will be solely responsible

As the US economy experiences increasing signs of stress, economist Harry Dent, who famously foretold one of the largest financial crashes in history, is sounding the alarm on the possible consequences of president Donald Trump's hardline immigration policies, as per a report.

Mass deportations: A threat to economic stability?

Dent, a veteran critic of the country's economic trajectory, opines that mass deportations of immigrants could drive the economy into recession far earlier than anticipated, as per Fox Business.

He contends that while it is a legitimate concern to decrease illegal immigration, returning millions of workers who have been contributing to the economy for years to their countries of origin could have disastrous effects, as per the report. He said that "to ship people back that are already here in the workforce, contribute to the economy and think it's not going to be felt, it will be," as quoted by Fox Business.

Potential drop in GDP

Dent also mentioned that sending illegal immigrants would "probably reduce gross domestic product by 1% to 1.5% right there," as quoted in the report. He also emphasized that "It only takes a 2%, 3%, 4% drop in GDP to literally throw you physically into recession. So I’m just saying… it's a bit ill-timed… a big trigger," as quoted in the Fox Business report.

Deportations already on the rise

Trump's government has already increased deportation activities and close to 38,000 individuals were deported within just one month, reported Fox Business. All these are part of an overall effort for stricter immigration controls and border security. But Dent warns that this approach could lead to a recession this year, as per Fox Business report. He said, "This is going to make it happen quicker, sooner," as quoted in the report. Dent added that most importantly, "it's going to make it look like whoever threw on these tariffs and whoever sent these immigrants back caused the recession," quoted Fox Business.

Trump administration's stance

Trump's government, however, remains adamant about stricter immigration policies. White House spokesperson Kush Desai justified the deportation efforts, stating the government's actions are needed to safeguard the nation and its economy. Desai claimed, "What America cannot afford is a lackadaisical approach to our border security and immigration laws, and the Trump administration is committed to putting Americans and America First," quoted Fox Business.

Harry Dent's call for reform

According to Dent, the current immigration system is broken, largely due to bureaucracy, and calls for a streamlined process to help integrate undocumented immigrants who’ve been in the US for years, as per Fox Business. He acknowledges the need to curb illegal immigration but warns against punishing those who’ve already contributed to society.

Recessions: A natural economic cycle

Despite his concerns, Dent claimed that recessions are a natural part of the economic cycle, reported Fox Business. He compares them to sleep, suggesting they serve to "cleanse the economy" of bad debts.

He said, "That's free market capitalism in its essence. Things have to be free to succeed, which most countries don't have fully. But they have to be free to fail," as quoted in the report.

FAQs

Why is Dent comparing recessions to sleep?
According to Dent, recessions are natural and healthy for the economy, helping to "cleanse" bad debts and restore balance, much like how sleep refreshes the body.

What is Dent’s stance on immigration reform?
Dent calls for a streamlined immigration process that helps integrate long-term undocumented immigrants.