Lower immigration affecting US household spending power

Low immigration has contributed to increased prices of consumer goods, argues Atlanta Fed

Population growth

An ongoing slowdown in immigration to the US is causing a host of troubles for the country’s labour market, according to research from the Federal Reserve Bank of Atlanta. 

A new paper by Federico Mandelman, Yang Yu, Francesco Zanetti and Andrei Zlate argues that immigration has slowed since the great recession of the late 2000s. The authors claim that this slowdown, which they attribute to restrictive immigration policies, has had three key effects. 

The first is a labour shortage in the service

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