Stock Alert: "Red Flag" Warning

The Wall Street legend who called the 2020 tech crash just issued a jarring warning about the AI market.

The No. 1 Crypto for 2024

A healthy US economy's secret ingredient: Immigrant workers, eager to fill jobs

PAUL WISEMAN
April 12, 2024

MIAMI (AP) -- Having fled economic and political chaos in Venezuela, Luisana Silva now loads carpets for a South Carolina rug company. She earns enough to pay rent, buy groceries, gas up her car -- and send money home to her parents.

Reaching the United States was a harrowing ordeal. Silva, 25, her husband and their then-7-year-old daughter braved the jungles of Panama's Darien Gap, traveled the length of Mexico, crossed the Rio Grande and then themselves in to the U.S. Border Patrol in Brownsville, Texas. Seeking asylum, they received a work permit last year and found jobs in Rock Hill, South Carolina.

"My plan is to help my family that much need the money and to grow economically here," Silva said.

Her story amounts to far more than one family's arduous quest for a better life. The millions of jobs that Silva and other new immigrant arrivals have been filling in the United States appear to solve a riddle that has confounded economists for at least a year:

How has the economy managed to prosper, adding hundreds of thousands of jobs, month after month, at a time when the Federal Reserve has aggressively raised interest rates to fight inflation -- normally a recipe for a recession?

Increasingly, the answer appears to be immigrants. The influx of foreign-born adults vastly raised the supply of available workers after a U.S. labor shortage had left many companies unable to fill jobs.

More workers filling more jobs and spending more money has helped drive economic growth and create still-more job openings. The availability of immigrant workers eased the pressure on companies to sharply raise wages and to then pass on their higher labor costs via higher prices that feed inflation. Though U.S. inflation remains elevated, it has plummeted from its levels of two years ago.

"There's been something of a mystery -- how are we continuing to get such extraordinary strong job growth with inflation still continuing to come down?'' said Heidi Shierholz, president of the Economic Policy Institute. "The immigration numbers being higher than what we had thought -- that really does pretty much solve that puzzle.''

While helping fuel economic growth, immigrants also lie at the heart of an incendiary election-year debate over the control of the nation's Southern border. In his bid to return to the White House, Donald Trump has vowed to finish building a border wall and to launch the "largest domestic deportation operation in American history." Whether he or President Joe Biden wins the election could determine whether the influx of immigrants, and their key role in propelling the economy, will endure.

The immigration boom was a surprise. In 2019, the Congressional Budget Office had estimated that net immigration -- arrivals minus departures -- would equal about 1 million in 2023. The actual number, the CBO said in a January update, was 3.3 million.

Thousands of employers desperately needed the new arrivals. The number of native-born Americans in their prime working years -- ages 25 to 54 -- was dropping because so many of them had aged out of that category and were nearing or entering retirement. Their numbers have shrunk by 770,000 since February 2020, just before COVID-19 slammed the economy.

Filling the gap has been a wave of immigrants. Over the past four years, the number of prime-age workers who either have a job or are looking for one has surged by 2.8 million. And nearly all those newcomers -- 2.7 million, or 96% of them -- were born outside the United States.

At the Flood Brothers farm in Maine's "dairy capital'' of Clinton, foreign-born workers make up half the staff of nearly 50, feeding the cows, tending crops and helping collect the milk.

"We cannot do it without them," said Jenni Tilton-Flood, a partner in the operation.

For every unemployed person in Maine, after all, there are two job openings, on average.

A study by Wendy Edelberg and Tara Watson of the Brookings Institution found that new immigrants raised the economy's supply of workers and allowed the United States to generate jobs without overheating and accelerating inflation.

In the past, economists typically estimated that America's employers could add no more than 60,000 to 100,000 jobs a month without overheating the economy and igniting inflation. But when Edelberg and Watson included the immigration surge in their calculations, they found that monthly job growth could be roughly twice as high this year -- 160,000 to 200,000 -- without exerting upward pressure on inflation.

Trump has repeatedly attacked Biden's immigration policy over the surge in migrants at the Southern border. Only about 27% of the 3.3 million foreigners who entered the United States last year did so through as "lawful permanent residents'' or on temporary visas, according to Edelberg and Watson's analysis. The rest -- 2.4 million -- either came illegally, overstayed their visas, are awaiting immigration court proceedings or are on a parole program that lets them stay temporarily in the country.

"So there you have it,'' Douglas Holtz-Eakin, president of the conservative American Action Forum, said. "The way to solve an inflation crisis is to endure an immigration crisis."

Many economists suggest that immigrants benefit the U.S. economy. They take low-paying but essential jobs that most U.S.-born Americans won't, like caring for the sick and the elderly. And they can make the country more innovative because they are more likely to start businesses and obtain patents.

Critics counter that a surge in immigration can force down pay, particularly for low-income workers. Last month, in the most recent economic report of the president, Biden's advisers acknowledged that "immigration may place downward pressure on the wages of some low-paid workers" but added that most studies show that the impact on the wages of the U.S.-born is "small."

Holtz-Eakin argued that an immigration cutoff of the kind Trump has vowed to impose, if elected, would result in "much, much slower labor force growth and a return to the sharp tradeoff'' between containing inflation and maintaining economic growth that the United States has so far managed to avoid.

___

Wiseman and Rugaber reported from Washington, Salomon from Miami.

Continue Reading...

Popular

FBI warns that foreign adversaries could use AI to spread disinformation about US elections

WASHINGTON (AP) — The FBI is concerned that foreign adversaries could deploy artificial intelligence as a means to interfere in American elections and spread disinformation, a senior official said Thursday, describing the technology as an area “that's probably going to see growth over the coming years.”

Elon Musk Gives One-Word Response To Joe Biden's Dig At Donald Trump At White House Correspondents' Dinner

Elon Musk reacted to President Joe Biden's recent comments at the White House correspondents' dinner with a one-word response that sparked some discussion on social media.

Market Warning: Don't Buy This... - Ad

Today's "bizzarro" market has one 50-year Wall Street veteran concerned. He believes most investors are about to make this huge mistake.

Top 3 Real Estate Stocks That Are Set To Fly

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down.

Central Banks Buying Gold in Record Numbers - Ad

Most folks have completely missed the fact that the world's Central Banks have been quietly gobbling up as much gold as they can... Stacking it in their locked vaults on pallets in record numbers. Find out why right here (and see what you can do to get in too with just a few dollars).

Berkshire Hathaway's Q1 Operating Earnings Surged 39% — Here's Why

Berkshire Hathaway's Q1 operating earnings surge 39%, driven by strong performance in insurance businesses and investment gains.

Bill Gates Shares Heartwarming Scuba Diving Photo With Daughter On Her 28th Birthday: 'I'm In Awe Of How You Dive Headfirst Into Everything.'

Bill Gates and Melinda French Gates each shared heartfelt social media posts to celebrate their daughter Jennifer's 28th birthday, highlighting her achievements as a mother, medical student, and equestrian.

America's Final Republican President - Ad

Louis Navellier believes Donald J. Trump could go down as America's last Republican president. But NOT for the reasons you may think... If he's right, the soul of this country will change forever...

I-95 overpass in Connecticut scorched during a fuel truck inferno has been demolished

NORWALK, Conn. (AP) — A bridge damaged in a fiery crash that kept Interstate 95 in Connecticut has been demolished.

"America's No. 1 Retirement Stock" (Name Inside) - Ad

According to the former Goldman Sachs VP -- who wrote a best-selling book on retirement -- one single stock stands head-and-shoulders above all others. And it should be the cornerstone of your portfolio. Have you heard of it?

Why Is Apple Stock Soaring Premarket Today?

Apple shares appear on track to reclaim the $180 level for the first time since the start of March after quarterly earnings.

The No. 1 Crypto for 2024 - Ad

We're entering the final crypto bull run, and 2024 will be your last chance to ever get rich from crypto. These five tiny cryptos are believed to create generational wealth over the next 12 months. $30 trillion is poised to funnel into the crypto markets thanks to a new government regulation just signed.

'Dogecoin Killer' Shiba Inu Burn Rate Spikes 800%, Crypto Market Rallies As Sentiment Soars And More: This Week In Cryptocurrency

The week was a rollercoaster ride for the cryptocurrency market. The crypto world was buzzing with news, from Shiba Inu’s surging burn rate to speculation of certain altcoins becoming irrelevant.

$25 AI Stock Could Deliver Life-Changing Windfall - Ad

Discover a company at the forefront of the AI revolution, with up to $1 billion in government-backed contracts and 1,372 patent applications. Trading at just $25 a share...

Once Vehicles For Republican Presidents To Connect With Southern Whites, Motor Sports Are Shifting Away From Trump

The fading sway of Trump in motor sports suggests the breakup of the conservative-racing connection, as shown by recent developments at the Miami Grand Prix.

Fraudsters target small businesses with scams. Here are some to watch out for

NEW YORK (AP) — It's never fun to be scammed, but if you're a small business owner then falling for a scam can have long-lasting effects on a business, damaging client relationships and profit.

PASSIVE INCOME (by this evening) - Ad

Hey, I have an unique opportunity for those looking for additional ways to earn income right now. It can be done from home. You can do it in your spare time. And it only takes 6 clicks and as little as $50.

Top 4 Health Care Stocks Which Could Rescue Your Portfolio This Month

The most oversold stocks in the health care sector presents an opportunity to buy into undervalued companies.

Could Elon's New Device be Bigger than the iPhone? - Ad

According to 30-year Silicon Valley and Wall Street veteran, Eric Fry... A man who picked 41 plays that jumped 1,000%+... This mind-blowing new technology could be bigger than the iPhone. And it could make a lot of people wealthy in the coming months and years.

Investing guru Warren Buffett draws thousands, but Charlie Munger's zingers will be missed

OMAHA, Neb. (AP) — Tens of thousands of investors are expected to once again descend on an Omaha, Nebraska, arena Saturday to vacuum up tidbits of wisdom from billionaire Warren Buffett. But a key ingredient will be missing from his annual Berkshire Hathaway : It's the first since Vice Chairman Charlie Munger .

Bystander livestreams during Charlotte standoff show an ever-growing appetite for social media video

CHARLOTTE, N.C. (AP) — Saing Chhoeun was locked out of his Charlotte, North Carolina, home on Monday as law enforcement with high-powered rifles descended into his yard and garage, using a car as a shield as they were from the direction of his neighbor's house.

You Need to Know These Two Things About AI Stocks ASAP... - Ad

One of the world's most successful investors just went public with what promises to be two historic predictions. Many high-flying stocks of AI's "First Wave" are about to come crashing down, and when it does, a "Second Wave" of AI stocks will explode higher thanks to "digital twin" technology.

South Carolina Senate turns wide-ranging energy bill into resolution supporting more power

COLUMBIA, S.C. (AP) — A bill that power companies call vital to in South Carolina has been turned into a resolution that only expresses support for the idea by the Senate, which wasn't ready to give more latitude to utilities that cost ratepayers billions.

Elon's New A.I. Device is About to Shock the World - Ad

Using this device you see... Elon Musk just tested a new type of A.I. that according to Wired Magazine will usher in... "The next step in human evolution."

America's "Least Woke" CEO Has a Different Idea for Your Money - Ad

Porter Stansberry might be the "least woke" CEO in America. And today he says, "There's a new form of money in America, making some people (including Elon Musk, Jeff Bezos, and Tim Cook), rich." It has nothing to do with gold or bitcoin, but it's 100% legal. The problem? Few Americans have a real understanding of how it works.

RTX Soars Above Estimates in Q1, Reiterates FY24 Outlook

RTX Corporation (NYSE: RTX) reported 12% increase in Q1 FY24 net sales to $19.3 billion, beating consensus. Collins Aerospace and Pratt & Whitney drove the growth.

Is This Nvidia's Secret Weapon? - Ad

You've likely heard about Nvidia's incredible success in AI. But without this startup's technology, Nvidia's groundbreaking AI chips simply wouldn't be possible. It's still flying under the radar. That could change very soon with a major announcement on the horizon.

Berkshire Hathaway event gives good view of Warren Buffett's successor but also raises new questions

This year's gave shareholders their best chance yet to hear from the man who will one day take over as CEO when Warren Buffett is gone, but Buffett said for the first time Saturday that should also take responsibility for the company's investments after he takes over, raising new questions about the succession plan.

Should You Buy Bitcoin in 2024? [Expert's Shocking Answer] - Ad

Bitcoin minted 100,000 millionaires and if you're not one of them, that ship has sailed. But there's another millionaire-minting crypto at our doorstep... research shows this coin could be 20X bigger than Bitcoin by the end of the decade. With crypto starting to heat up again, this could be the perfect time to get in.

Buffett Says No Other Americans Would Have Had To Pay Even A Dime In Federal Taxes If This Had Happened

Warren Buffett suggests that federal taxes will likely increase given the country's precarious fiscal position, and he expressed Berkshire's willingness to cover the tax bill it faces.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright smartmoneytrading.net
Privacy Policy | Terms of Service