The Economic Impact of Closing US Borders
The United States, as a global economic powerhouse, faces several challenges that could significantly impact its economy. One of the most contentious issues is the potential closure of its borders. This policy decision would likely have far-reaching consequences, both positive and negative, depending on how it is implemented.
Economic Scenarios: Best and Worst Cases
From a purely economic standpoint, the best-case scenario for closing the US borders would be a dramatic drop in food production necessitating substantial investments in foreign food acquisition. This would be an extremely expensive and difficult transition for the US economy. The worst-case scenario, however, is far more catastrophic. In this scenario, the inability to produce enough food would force most businesses to close, as either employees would quit to attempt growing their own food or simply because they would be too hungry to work.
A comprehensive scale of economic devastation places the closure of borders around level thirty, which is a severe increase from the global pandemic (level one) and the Great Depression (level ten).
Border Security and Legal Immigrants
Despite the rhetoric surrounding border closures, the reality is that the US does not, and should not, close its borders for proper documentation. Legal Mexican immigrants, who have proper documents and employment on the USA side, are not the problem. It is the illegal immigrants and those seeking to exploit the system who cause issues. Many Mexican nationals were born in the USA and are already citizens or permanent residents.
“Building the wall is obviously critical” is a common refrain, primarily due to the labor shortage. There is a significant need for legal working hours, and closing borders comprehensively would exacerbate this shortage.
Practical Solutions: Japan’s Post-WWII Model
Historical precedents offer insights into the potential outcomes of border closures. After World War II, Japan closed its borders to goods and services, leading to severe economic turmoil. In contrast, the US should aim for more targeted measures such as restricting illegal immigration and ensuring that products from subsidized countries are not allowed.
However, the previous administration under Trump aimed to implement a more controlled approach, allowing goods and services but enforcing stricter immigration policies. Current policies, which seem to suggest an even more open approach, are far less implemented and may lead to significant economic instability.
Benefits and Concerns
On the positive side, closing borders could reduce addiction, a significant drain on both individuals and the economy, and decrease criminal activity associated with substance abuse. This would lead to a reduction in wasted lives and criminal activities.
Additionally, reducing the number of unwanted uneducated and unskilled immigrants could potentially free up entry-level jobs for US citizens. This would likely be seen as beneficial by a significant portion of the US population. However, it is essential to maintain valid immigration laws and enforce them rigorously.
Lastly, many entry-level jobs for high school students are currently being filled by illegal immigrants working under the table, particularly in fields such as construction, electrical, plumbing, and more. Restricting these workers could mean that these jobs become available for US citizens, potentially improving the job market.
Conclusion
While closing the borders to all goods and services could have catastrophic effects on the US economy, targeted measures that focus on illegal immigration and subsidy enforcement could lead to a more stable and prosperous future. The key is to balance these measures with the practical realities of the current job market and the needs of American citizens.