Bill Ackman, billionaire investment fund manager and activist investor, has an alternative idea to fight inflation: increase to immigration.
He criticized Federal Reserve jury tax increases in a series of tweets on the fifth-feira (22) and sixth-feira (23) as a forceful tool that will destroy consumer demand and trigger a recession.
“Inflation can be mitigated by reducing demand and/or increasing supply,” tweeted Ackman, from Pershing Square Capital.
“Doesn’t it make more sense to moderate salary inflation as an increase in immigration than to increase taxes, destroy demand, leave people without work and cause a recession?”
My argument is that, as the availability of workers in the United States increases, companies will be less pressured to take vacancies in the open.
Ackman, a long-standing Democratic donor with net worth estimated at US$2.5 billion, is not the first person to make such an argument, and has conducted research that supports the idea that the issuance of more views from immigrants and foreign workers temporary is linked to more stable supply chains and reduce the total costs of the consumer.
In another tweet, Ackman suggested that immigration policy could be crafted to “achieve important political goals, such as catalyzing a Russian brain drain to the US.”
An influx of workers can add some time to a historically open labor market, which still has approximately two open vacancies for each person seeking employment.
Unemployment, at 3.7%, is close to its lowest level in the past century.
The arrears in the supply chain, the war in Ukraine and the slowdowns related to Covid-19 have played a colossal role in reducing the cost of food, energy and housing in the last two years.
Corporations are also reviewing costs to preserve their profit margins, and climate changes are creating unprecedented volatility in commodity markets.
Source: CNN Espanol