President Joe Biden’s mass immigration policies are driving up housing inflation, pushing up interest rates and mortgage rates, a newspaper report has revealed. wall street journal.
Chicago Fed President Austan Goolsby said the recent supply of new apartments and homes should have led to a fall in home prices, but “they are not moving as expected.”
Goldsby says getting inflation back to the 2% target “I still think it’s going to happen, but if we don’t get it, we’re going to have a really hard time.” Said Jour Article from May 11th.
“But some industry executives say: [new housing] Supplies are being rapidly absorbed due to increased immigration,” the J said.our I got it.
This immigrant-driven housing process siphons vast amounts of wealth from ordinary Americans and sends it to landlords and housing investors. This process also directs investment funds toward real estate rather than machinery, automation, and training that would help increase productivity and wages for ordinary Americans.
Goolsby’s comments were echoed by Neel Kashkari, president of the Federal Reserve Bank of Minneapolis. “Although increased immigration will have an impact on inflation in the long run, [and interest rates] It’s unclear… [immigrants’] Their arrival in the U.S. may have also increased demand for housing,” Kashkari said. Said May 7th.
Since 2021, Biden and his agents have imported more than 10 million legal, illegal, and semi-legal immigrants through increasingly diverse channels. The influx was so large that it resulted in roughly one immigrant for every American child born during Biden’s term. This sudden government-driven population growth created a “demand shock” for consumers and a boom for retailers, landlords, and the food industry.
“The demand was much higher than most people expected,” said CEO Rick Campo. Camden Property TrustThis was announced by a Texas housing company with 58,000 apartments and homes. wall street journal.
Bankers’ views are important. That’s because they and other Federal Reserve bankers will be responsible for reining in inflation, which has skyrocketed under the Biden administration.
Fed appointees are currently trying to lower inflation by raising interest rates to slow the overall economy. Since the beginning of 2022, the Federal Reserve has pushed Interest rates will rise from a quarter of a percent to 5.5 percent. In line, new mortgage rates paid by homeowners and landlords and renters rose from 2.7% in December 2020. up to 7 percent In May 2023.
Biden’s campaign to reverse immigration-driven inflation imposes significant costs on young Americans.For example: money under 30:
A 1% difference between a $200,000 home and a $160,000 mortgage increases your monthly payment by almost $100. The difference in monthly payments may not seem that extreme, but a 1% higher interest rate means you’ll pay about $30,000 more in interest over 30 years. ah!
Additional payments will go to older investors who were lucky enough to buy homes and stocks decades ago.
This immigration-driven process is increasingly recognized as transferring housing wealth from American children to their parents and from Millennials to Boomers.
Breitbart News reported on May 6 that young workers in the United States are losing hope of buying a home amid a massive influx of immigrants under President Biden.
Expectations of one day owning a home have hit a record low, with renters becoming increasingly pessimistic about their chances of owning a home, a survey has found. released The New York Fed announced this on Monday.
The average probability of a renter buying a home in the New York Fed’s Consumer Expectations Survey fell to 40.1%. This is down from 44.4% a year ago and the lowest on record 10 years ago.
Shifting investment funds from work to housing could also have a major impact on Americans’ ability to be productive at work. For example, Larry Fink, founder of the $10 trillion BlackRock investment fund, said at a pro-globalist event on April 29 hosted by the World Economic Forum in Saudi Arabia:
That’s something most people never talk about.we always thought [a] Depopulation is a negative factor [economic] growth. However, in conversations with leaders of these large developed countries, [such as China, and Japan] That is…no one is allowed in- [so they have] Shrinking demographics — these countries will rapidly develop robotics, AI, and technology…
If you commit to all the things that will change your productivity, most of us think that [emphasis added] —Even if the population declines, it will be possible to raise the country’s standard of living and the standard of living of individuals… [we] needed instead of humans [in some jobs] It will be much easier in countries with declining populations.
Migration also reduces the wages and salaries Americans have to pay to afford more expensive housing.
International Monetary Fund Managing Director Kristalina Georgieva said at an April 2024 meeting that the “abundance of labor flowing across borders” is reducing the wages paid to American employees. .
