The Palm Beach Post

A tale about Dreamers, liars and Sessions’ junk economics

- Paul Krugman

Does it matter that Jeff Sessions, the attorney general, tried to justify Donald Trump’s immigratio­n cruelty with junk economics?

It’s definitely not the main issue. Trump’s decision to rescind the Deferred Action for Childhood Arrivals policy is, above all else, immoral. The 800,000 beneficiar­ies of DACA — the so-called Dreamers — have done nothing wrong; they came to the United States illegally, but not of their own volition, because they were children at the time.

They are, according to all available data, an exemplary segment of our population: hard-working young people, many seeking to improve themselves through higher education. They’re committed to the values of their home — because America is their home.

To yank the rug out from under the Dreamers — perhaps even to use the informatio­n they supplied voluntaril­y to harass and deport them — is a cruel betrayal. And it’s self-evidently driven by racial hostility. Does anyone believe this would be happening if the typical Dreamer had been born in, say, Norway rather than Mexico?

Still, Sessions chose to put economics front and center in his statement, declaring that DACA, which allows the Dreamers to work legally, has “denied jobs to hundreds of thousands of Americans by allowing those same jobs to go to illegal aliens.” That’s just false.

The day after announcing that he would rescind DACA, Trump gave a speech on tax reform in which he claimed, as he has on multiple occasions, that America is the “highest-taxed nation in the world.” As fact-checkers have pointed out every time he says this, this isn’t just false, it’s almost the opposite of the truth — the U.S. collects less in taxes, as a share of national income, than almost any other advanced economy.

So having officials make false claims about the economics of DACA is, in a way, just standard operating procedure for this administra­tion.

The official administra­tion line is that Trump had no choice, that he was regretfull­y taking harsh action because DACA was an illegal exercise in executive power — which was also supposedly the reason the statement came from Sessions rather than the president himself. Actually, the legal case for DACA is pretty strong.

The truth is that letting the Dreamers work legally helps the U.S. economy; pushing them out or into the shadows is bad for everyone except racists.

To understand why, you need to realize that Amer- ica, like other advanced economies, is facing a double-barreled demographi­c challenge thanks to declining fertility.

On one side, an aging population means fewer workers paying taxes to support Social Security and Medicare. Demography is the main reason long-run forecasts suggest problems for Social Security, and an important reason for concerns about Medicare. Driving out young workers who will pay into the system for many decades is a way to make these problems worse.

On the other side, declining growth in the working-age population reduces the returns to private investment, increasing the risk of prolonged slumps like the one that followed the 2008 financial crisis.

In short, letting Dreamers work is all economic upside for the rest of our nation, with no downside unless you have something against people with brown skin and Hispanic surnames.

Which is, of course, what this is all really about.

She writes for Creators Syndicate.

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