The Ripple Effect of Trump's Border Closure Policies: Economic Impacts on California and Mexico

With the ever-evolving political landscape, discussions about border closures and their economic impacts continue to gain traction. One notable figure, President Donald Trump, floated the idea of shutting down border crossings. In this article, we explore the potential ripple effects of such a policy on both the California and Mexican economies. We also examine the broader economic implications across America as a whole.

Innovation and Corporate Profits: A Driver of Growth

Recently, President Trump signed new tax revisions that drastically lowered the corporate tax rate. This move has had significant effects on the economy. Corporate profits from these tax reductions have been substantial, with hundreds of billions of dollars in profit being brought back to the USA economy.

These billions of dollars have been allocated to various areas such as dividend payouts to shareholders, debt buybacks, investments, infrastructure repairs, expansion, employment of additional staff, funding raises to retain talent, research and development (RD), and acquisitions of weaker, underperforming companies with the hope of turning them around for profitability.

The widespread economic impact of these new funds can be seen in various metrics:

Welfare and Unemployment: Welfare rates have declined, and unemployment rates have fallen while new hires and job expansions have increased. Consumers and Business Owners: Consumer spending has increased, and the number of new small businesses, especially minority-owned and women-owned, has risen. Investment: Wall Street numbers have improved, and there has been a boost in investments.

The Misconception of Border Closure Rhetoric

Despite the profound economic benefits mentioned above, some critics remain skeptical about border closures, especially in terms of its negative impact. However, multiple new studies document the significant financial and resource drain that illegal immigrants place on the USA economy and local municipal resources.

Furthermore, there is a misconception about the exact scope of border closure policies. For instance, it is often suggested that the policy will only affect people, while allowing goods to continue to cross the border. This is a common misunderstanding. Such a partial closure could have far-reaching consequences. Approximately $2 billion worth of goods cross the border each day, and millions of people cross it for work. A complete closure would not only affect vegetable prices at grocery stores but also delay the delivery of promised jobs in hundreds or thousands of shops on both sides of the border.

More importantly, President Trump's lack of foresight and understanding of the implications of his actions and statements is evident. His trade war efforts and border policies exemplify a tendency to act impulsively without considering the potential fallout.

Conclusion

The potential impact of border closures on the California and Mexican economies, as well as the broader economy of America, cannot be underestimated. While there are valid concerns about the economic and social ramifications, it is crucial to base these concerns on accurate data and comprehensive analysis rather than conjecture and rhetoric.

Understanding these implications is crucial as the political discourse around border policies continues to evolve. It is essential to have informed discussions that consider both economic and social factors to make well-informed decisions.