In a recent conversation with Scott Besent from Blaze Media, a key economic advisor from the Treasury discussed how President Trump’s deportation policy could be beneficial for American workers’ wages. Joseph Lavorgna addressed the argument that the presence of illegal low-wage workers doesn’t significantly impact wages in the U.S.
He emphasized, “There’s no lower bound rate when it comes to wages. The economic reasoning here is quite strong… It’s clear that wage growth needs to pick up.” During their discussion, Beck noted some skepticism regarding the idea that undocumented immigrants might be affecting American wages negatively.
Lavorgna countered, saying, “The core issue is that when you hire undocumented workers, employers can offer wages below the average. This ultimately drags down what everyone else is paid.” He added, “If a business has access to, let’s say, exploitative labor, they won’t feel compelled to offer competitive wages.” This, he argues, sets a lower standard that affects all workers.
The Trump administration had a focus on raising wages. Reports indicated that during the first few months of Trump’s second term, real wage growth had seen significant improvements.
Despite differing views, some economists maintain that immigrants—both legal and unauthorized—contribute positively by keeping prices low through lower-wage labor. In a New York Post podcast discussion, Besent argued that the surge of illegal immigrants has hindered wage growth under the Biden administration. “With the open border policy, there’s been a flood of workers,” he mentioned, pointing out that this situation is detrimental for U.S. workers, as it places a strain on their wages.
