Paul Krugman wrote yesterday that Donald Trump's decision to kill DACA was a "moral obscenity." But, on simple economic grounds, it's stupid:
First note that whatever you think about the economics of less-educated immigrants — most of the evidence suggests that they don’t depress wages, but that’s another discussion — none of it applies to DREAMers. Their educational and behavioral profile, as Cato notes, doesn’t resemble the average immigrant, let alone the average undocumented immigrant; they look like H-1B visa holders, that is, skilled immigrants we have specifically allowed in because they help the economy.
Beyond that, DREAMers are young — which means that they help the economy in not one but two big ways, because they mitigate the economic problems caused by an aging population.
One of those problems is fiscal: as the population ages, there are fewer working-age members contributing taxes to pay for Social Security and Medicare. A cohort of relatively high-wage, highly motivated people mostly in their 20s, likely to pay lots of taxes for decades, is exactly what the doctor ordered to make that issue less severe.
Beyond that, sending dreamers home will cause "a sharp slowdown in the growth of the working-age population, which means less incentive to invest in structures, factories, and more. (The demographic issue is why Japan, with low fertility and great hostility to immigration, entered a zero-rate regime a decade before the rest of us.)
Every time Donald Trump opens his mouth, he says something stupid. But his actions prove that this supposedly smart business man is an economic ignoramus.