Trump has proved economists wrong in the past. Can he do it again?
The U.S. economy could face a sharp downturn if President Donald Trump’s immigration policies are implemented too abruptly, warns renowned economist Harry Dent. While addressing concerns over illegal immigration, Dent emphasizes the risks that come with sending millions of workers home who are currently contributing to the American economy.
“It’s one thing to reduce illegal immigration, but removing people who are already integrated into the workforce and are economically active will have an impact,” Dent explained in an interview with Fox News Digital. “The U.S. economy is already overstimulated, and losing such a large portion of the workforce could cut our GDP by as much as 1 to 1.5%. A small drop like that is enough to push the country into a recession.”
Dent’s warning comes as the Trump administration ramps up its enforcement efforts. In January, nearly 38,000 individuals were deported under the new policies, with a goal of arresting up to 1,500 illegal immigrants daily, according to reports. Dent, who has long predicted a major economic crash due to unsustainable fiscal policies, argues that the combination of Trump’s immigration push and his tariff policies could significantly exacerbate the situation.
“I’m not advocating for illegal immigration,” Dent stated. “But these people have been here for years, and many have built lives and families. A clear, streamlined path to legalization would be a better solution. We need immigrants, but we need a sensible, fair immigration policy that doesn’t harm our economy.”
While Dent supports efforts to secure the border, he cautions that immediately sending millions of workers back could do more harm than good, potentially accelerating the arrival of a recession that he believes is already inevitable by 2025. He notes that demographics play a crucial role in the economy, and immigrants are vital to maintaining growth and productivity in the U.S.
“The U.S. has always been a country of opportunity,” Dent explained. “Our secret sauce is innovation, which comes from attracting the best and brightest from around the world. If we suppress immigration too much, we risk stunting our growth.”
Though Dent acknowledges that recessions are a natural part of a free-market economy, he warns that abrupt policy changes without careful planning could trigger one far sooner than anticipated, with devastating consequences for the nation’s economic stability.
“Recessions can be a cleansing process, but we need to approach these challenges with wisdom,” he concluded. “Let’s fix the immigration system, make it efficient, and stop punishing people who have already contributed. It’s time for a balanced, forward-thinking approach.”