Word on the Street #326 Immigration and growth
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Jun 12, 2025 Will Hobbs, an investment strategist at Barclays, shares his expertise on the complex interplay between immigration and economic growth. He critiques traditional economic indicators, highlighting how immigration drives innovation and cultural shifts. The discussion delves into the impact of mobile technology on mental health and examines modern political communication strategies. With an optimistic outlook on real wages and growth, Hobbs emphasizes the importance of ideas in fueling economic expansion amidst today's geopolitical dynamics.
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GDP Snapshots Limitations
- GDP snapshots are mostly meaningless due to measurement errors and only capture part of economic activity.
- Longer-term GDP trends correlate with living standards, but short-term data should not be overemphasized.
Hidden Economic Effects of Immigration
- Immigration's economic impact is often invisible to standard aggregated statistics and statistical techniques.
- Much of immigration's influence occurs outside market prices, affecting culture and knowledge vital for innovation.
Deportations Harm Growth
- Research on deportations shows that removing low-income workers leads to fewer jobs and deters entrepreneurship.
- Deportations cause existing businesses to leave, indicating reduced economic growth in affected areas.