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The crackdown is bad for business, and bad for state and local revenues

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* Martin Cabrera of Cabrera Capital speaking at the City Club yesterday

In Illinois, the US Latino buying power is about $101 billion every year. And when you see the neighborhoods - Back of the Yards, Little Village, Pilsen and suburbs who are contracting in business - there are fewer dollars spent and fewer taxes being collected at the State level. This will cause more of a budget gap for the State and decisions will get harder. Where are we gonna cut services? That will be difficult. So we need to band together, even the bipartisan organizations in the red states, to find solutions on a shorter term and longer term basis. We will feel it at the City level, state level and across the country.

* I called Cabrera’s office to ask about the $101 billion number, which would be about ten percent of Illinois’ trillion-dollar GDP. I was referred to a Latino Donor Collaborative study about the ten largest US Latino state GDPs in 2024. It actually had Illinois in fifth place at $145 billion.

A 2023 Sun-Times op-ed by Sylvia Puente and Daniel Cooper had Latino spending power in Illinois at $68 billion.

* Whatever the real number is, it’s a huge impact. And keep this 2022 story in mind

The Little Village Arch also ushers neighbors and visitors through the commercial corridor known as the second-highest revenue generator in the city after the Magnificent Mile.

That’s huge.

* Block Club Chicago two weeks ago

Local officials and immigrant rights advocates are calling on neighbors to shop local and support immigrant-owned businesses as threats of raids and reports of ICE arrests have brought foot traffic down in predominantly Latino neighborhoods. […]

Along Little Village’s commercial corridor on West 26th Street, businesses were open and some shoppers were seen visiting local grocery stores, restaurants and shops or walking past street vendors Monday evening.

However, foot traffic was “significantly” down and sales have been down since Friday, when many expected immigration agents to be fully assembled in Chicago, said Michelle Macias, daughter of Carnicería and Taquería Aguascalientes’ owner. The Mexican grocery store has been open in Little Village for 49 years and the restaurant opened in 1980.

“Everyone’s really afraid to come out to buy groceries, take their kids to school and just do everyday tasks,” she said.

Discuss.

posted by Rich Miller
Wednesday, Sep 24, 25 @ 9:42 am

Comments

  1. Cabrera is right on point, no question about it.

    Comment by low level Wednesday, Sep 24, 25 @ 10:09 am

  2. Spot on. At the end of the day this isn’t about making our cities safer. It’s deamonizing people of different ethnicities while causing real social and economic damage.

    Comment by Pundent Wednesday, Sep 24, 25 @ 10:26 am

  3. Thinking people know the MAGA cleansing program comes at an economic cost. What is a surprise to me - and Rich dutifully followed up - is the Latino economic impact. WOW

    Comment by Norseman Wednesday, Sep 24, 25 @ 10:26 am

  4. Every quantitative examination of immigration in the US shows it is a net financial benefit. Cracking down on visa holders and green card holders who have minor infractions in their past is soley based on racism, not on any meaningful expectation that it will improve anything for the country.

    Comment by Homebody Wednesday, Sep 24, 25 @ 10:37 am

  5. OK. Still no excuse to have people come into our nation illegally- and that goes for all no matter where they come from.

    Nor should they be allowed to stay here when they come in illegally. Mr. Cabrera has his own agenda. I understand that.

    The Immigration Reform Act of 1986 gave amnesty to 2.7 million illegal immigrants. It promised secure borders and employer/employee ID. The first promise was delivered and the rest ignored by both political parties.

    This nation needs a rational immigration policy. This would be based upon those who have unique skills that can immediately productive without harming employment of our own citizens. Temporary labor through visas should be just that,
    temporary. With good wages, health care and housing provided by those who employ them. Again, not an end around to depress wages.

    Complicated issue with very few willing to engage in a truly rational and non self aggrandizing manner that does not benefit them politi9cally or economically.

    Comment by Mason County Wednesday, Sep 24, 25 @ 10:37 am

  6. This targeting of Latinos by the administration, aside from its clear racism, has always seemed counterintuitive just at a purely economic level. It seems designed to destroy the economy–and not just in blue states. Combined with the tariffs, this purge has really hurt the farm economy, especially (ironically) in states that voted red, where the harvest depends on workers who are now gone or in hiding.

    I wish national-level reporters would start asking: Why does the administration appear to be trying to kill the U.S. economy? What is their true end game? Because it’s really looking like a deliberate program at this point.

    Latinos make up ca. 20 percent of the U.S. population, making them the biggest ethnic group after non-Hispanic whites. Of course they have a huge economic impact.

    Comment by Crispy Wednesday, Sep 24, 25 @ 10:37 am

  7. Crain’s on Sept. 5 published a comprehensive look at the impact on the Latino business community. The gist: The economic effects go well beyond neighborhoods like Little Village and Pilsen. The stories are free to view — no paywall:

    https://www.chicagobusiness.com/elevate/chicago-latino-businesses-hurt-immigration-policies

    Comment by Ann Dwyer Wednesday, Sep 24, 25 @ 10:38 am

  8. Latino doesn’t necessarily mean undocumented immigrant. A fact a lot of Dems ignored in the last election, weren’t prepared for the inevitable pulling the ladder up behind them that always happens.

    I wonder how much of that $68b or $100 bn or $148 bn is related to undocumented immigrants to some extent.

    Comment by Perrid Wednesday, Sep 24, 25 @ 10:52 am

  9. ==Latino doesn’t necessarily mean undocumented immigrant.

    Tell that to ICE.

    Comment by CA-HOON! Wednesday, Sep 24, 25 @ 11:12 am

  10. == OK. Still no excuse to have people come into our nation illegally- and that goes for all no matter where they come from. ==

    The fact that you automatically assume “Latino” here automatically means “illegal” really says something, especially when we have hard evidence of documented people (i.e., the people who did it “the right way” and are “legal immigrants”) being caught up in immigration raids and sweeps.

    Comment by Leap Day William Wednesday, Sep 24, 25 @ 11:20 am

  11. Good points Mason County. Both parties have contributed to the mess we’re in now. However, the larger point about the overwhelmingly positive economic impact of immigration should not be lost on anyone in and around Havana.

    Mason County saw it’s high point for population in 1980, at 19,000 residents. Today it is less than 13,000. When you are ready to retire and move to a warmer climate, who do you think is going to move to Mason County and buy your house?

    The US birth rates are low, we are not replacing ourselves, and states and regions that are not growing in population are destined for big economic trouble. Immigration is one way to boost rural America.

    I’d encourage you to give more thought to an amnesty program like President Reagan signed in 1986. For your own sake and for the sake of your neighbors. Highly skilled immigrants are not likely to move to Havana, so you should be thrilled if any immigrants wish to live in your community.

    If you’re not growing, you’re dying. And Mason County is not growing.

    Comment by 47th Ward Wednesday, Sep 24, 25 @ 11:24 am

  12. === Still no excuse to have people come into our nation illegally- and that goes for all no matter where they come from.

    Nor should they be allowed to stay here when they come in illegally. ===

    To be clear, they did not “come here illegally.”

    There is a legal process for undocumented immigrants to come here and seek asylum. Most of the people being deported were going through that legal process.

    Comment by Juvenal Wednesday, Sep 24, 25 @ 11:32 am

  13. @ Mason County What is your answer in polarized times? The last immigration reform bill was killed by the current president so he could use the issue in the election. Also the racist replacement theory is an obstacle.

    Our whole GDP is at risk with these moves.
    https://www.marketplace.org/story/2024/09/05/is-immigration-good-or-bad-for-the-economy-the-answer-is-complex

    Comment by SJOH Wednesday, Sep 24, 25 @ 11:39 am

  14. =This nation needs a rational immigration policy.=

    I absolutely agree. The current President does not. We had a bipartisan rational immigration policy up for vote in the last Congress. The current President put a stop to it. Not because it wasn’t in the country’s best interests but because it wasn’t in his own.

    Comment by Pundent Wednesday, Sep 24, 25 @ 11:52 am

  15. ==can immediately productive ==

    A lot of these people already have jobs and are productive. You’re ripping them away from their jobs and harming the businesses that employ them. Here’s a solution. If someone is working and being a productive member of society put them on a path to legal status instead of ripping them out of their communities and deporting them. But that’s too rational. We’re in an anti-immigrant punishing mode frenzy right now. It’s an immoral policy.

    Comment by Demoralized Wednesday, Sep 24, 25 @ 11:56 am

  16. So, you’ve got millions of people that are working and paying taxes, contributing to the economy, buying goods and services from businesses- and you want to get rid of them? Who is going to do that work? Who is going to pay those taxes? Who is going to do that buying?

    Comment by Friendly Bob Adams Wednesday, Sep 24, 25 @ 12:02 pm

  17. === Who is going to do that work? Who is going to pay those taxes? Who is going to do that buying? ===

    Pair this with work requirements for Medicaid, and you have your answer.

    Once again: The cruelty is the point.

    Comment by Tim Wednesday, Sep 24, 25 @ 12:06 pm

  18. “Who is going to do that work? Who is going to pay those taxes? Who is going to do that buying?”

    “Native born Americans” is the answer I’ve gotten to these questions from the republicans in my life. So there you go, they have the problem they’re creating solved already. #winning

    Comment by Larry Bowa Jr. Wednesday, Sep 24, 25 @ 12:14 pm

  19. @47th Ward

    Depends. If ANYONE they brings businesses that are really successful and they pay decent living wages they are most welcome.

    But just increasingly your population base without the above is not only meaningless but detrimental.
    I am not certain whether you do not know that economic reality or are just ‘deflecting.’

    Comment by Mason County Wednesday, Sep 24, 25 @ 12:17 pm

  20. And people like Ald. Ray Lopez are selling out their community and advocating against the city’s economic success as a trade-in for occasional FOX News appearances and social media clout.

    Comment by NIU Grad Wednesday, Sep 24, 25 @ 12:17 pm

  21. @Prudent

    Are you referring to HR 4393 the so called Dignity Act? If you are then I submit the following. Yes, it does have some good provisions. And some are merely a repeat of the same promises made in the 1986 bill Deja vu all over again. Kind makes you wonder if the sponsors ever read the existing legislation and its meaning as well as content.

    Provides for up to 10.5 million (DHS figures) illegal immigrants to obtain legal status. In effect, another amnesty bill.

    As far as I can tell it does not provide any real immigration ‘reform’ in that there is still no detailed policy for the type of labor that we need in this nation and how that need should be specifically implemented. Again, it is largely a repeat of the 1986 bill with a little nod to Asylum application requirements.

    Now, none of what I state is going to change the minds of those who want a massive new amnesty program. I understand that very well.

    Comment by Mason County Wednesday, Sep 24, 25 @ 12:34 pm

  22. ===not only meaningless but detrimental===

    Gonna ask that you provide some actual proof of that.

    Comment by Rich Miller Wednesday, Sep 24, 25 @ 12:41 pm

  23. @ Mason County

    === OK. Still no excuse to have people come into our nation illegally ===

    This is literally a characteristic of what psychologists refer to as an “authoritarian personality type.”

    Playing by rules because the rules exist, and because we have been taught to follow rules, does not allow for the questioning of rules - only their imposition on others. It is problematic in many ways, but it is certainly problematic because in justifies widespread harm to others on the grounds that the rules are assumed to be just and righteous without question.

    A $70-100 B economic impact is more important that insisting that people who come here legally, only to subsequently be defined (not adjudicated) to be illegal must leave.

    Step back, Mason County, and breathe. What is the goal of your approach? Assuming you were the authority here, what would you accomplish if you had your way?

    Think beyond the rules. Many immigrants were allowed to come here legally and work here legally. Unfortunately, the current Administration has by fiat, declared many legal residents of Illinois to now be illegal because of their national heritages, not because of their actions. Is that just and righteous? I say no.

    Comment by H-W Wednesday, Sep 24, 25 @ 12:51 pm

  24. Not a word of complaint from those who trash Illinois’ business climate.

    Republicans and MAGA are going to ride with Trump no matter the damage, that’s been clear for years. The party of rugged individualism won’t put a stop to any of it.

    Comment by Grandson of Man Wednesday, Sep 24, 25 @ 12:53 pm

  25. ==“Native born Americans” is the answer I’ve gotten to these questions from the republicans in my life. ==
    Is the appropriate response to that “So, which of your kids or grandkids are you sending to pick crops year-round?” Because I have yet to find someone who says that also say that that’s what they want for any relative of theirs.

    Comment by BE Wednesday, Sep 24, 25 @ 12:53 pm

  26. ==Now, none of what I state is going to change the minds of those who want a massive new amnesty program.==

    Nor should it change their minds. You’re advocating for rounding up millions of people in a cruel manner and shipping them out. Again, that is an immoral policy. It doesn’t solve anything. It might make you feel better because you black and white people don’t see anything but “illegal” and want to say good riddance. Logical people recognize the benefit of these people and the contributions that many of them are making to society. You don’t seem to care.

    Comment by Demoralized Wednesday, Sep 24, 25 @ 1:00 pm

  27. @Mason County. Others have mentioned this but just to further clarify: President Biden worked with Republicans on a bill to reform immigration. Congressional Republicans supported this. When the orange master said publicly that Republicans should not support this to help him politically, Republicans withdrew their support.

    Now tell me Mason County, which party is serious about immigration reform and which isn’t?

    Comment by Steve Rogers Wednesday, Sep 24, 25 @ 1:19 pm

  28. ====not only meaningless but detrimental===

    Gonna ask that you provide some actual proof of that.=

    It is not the number of people you have, it is the
    per capita income that is the issue. India has lots of people but income per person is quite low. Having more poor people without skills coming to India is not going to help.

    That is evidenced everywhere. So if ‘City X’ has increased their population but the people who come there are poor, and there are few good jobs, that is not going to make help that city or its existing population. Indeed, just the opposite. That is the reason for my earlier statement “Depends. If ANYONE brings businesses that are really successful and they pay decent living wages they are most welcome.”

    If City X has a lot of good jobs that need to be filled then a population increase from anywhere outside can be great. Or if the new people coming in are going to build successful businesses that is also great.

    Hope this is clear. If not, I will try to elaborate even more.

    Comment by Mason County Wednesday, Sep 24, 25 @ 1:28 pm

  29. ===has a lot of good jobs that need to be filled===

    And if it has a lot of hard-work jobs that few citizens want or can do?

    Comment by Rich Miller Wednesday, Sep 24, 25 @ 1:56 pm

  30. A lot of that depends on the salaries being offered.

    “Former President George W. Bush said on Thursday that the U.S. needs to “welcome” immigrants and thank them for doing the “jobs that Americans won’t do.”

    “Americans don’t want to pick cotton at 105 degrees, but there are people who want to put food on their family’s tables and are willing to do that,” he said, according to The Associated Press. “We ought to say thank you and welcome them.”

    That is not the mentality I subscribe too.

    Remind me of Beardstown, Ill.

    Those used to be well paying jobs for low skilled workers and a multi county area filled the labor force. New owners, broke the union and offered jobs at c. half the salary. Could not get locals to do hard work for just above minimum wage so they claimed they could not get anyone to do those jobs. Yea, right- under their servile conditions.
    So company got approval to seek foreign workers who would work for so little.

    If there are that many jobs “that few citizens want to do” then better look again at the reason(s) behind it. Not the thought process of Bush II.

    Bush’s implication was that Americans are too lazy.

    No, they just need good wages for tough jobs. Everybody needs to understand that.

    P.S. Former M.A Sangamon State University, Poltiical Studies 1973

    Comment by Mason County Wednesday, Sep 24, 25 @ 2:14 pm

  31. “Having more poor people without skills coming to India is not going to help.”

    Why are you talking about India?
    If this is true about the US it means rural America is already dead, because skilled labor born in the US will never want to live there in the absence of forced relocation by the government.

    “Hope this is clear. If not, I will try to elaborate even more.”

    Thanks anyway.

    Comment by Larry Bowa Jr. Wednesday, Sep 24, 25 @ 2:15 pm

  32. I’ve been to Mason County a lot of times to visit in-laws and a couple of times to help them deal with floods. I don’t accept the premise that immigrants are flocking there without knowing jobs are available for them. There’s no fooling them into thinking that they can get a luxurious bath in the Village of Bath. Although, there’s a quaint little restaurant outside of Havana that serves great Pork-T’s. But even that doesn’t seem like enough of an attraction to bring’em in without jobs.

    Comment by Norseman Wednesday, Sep 24, 25 @ 2:19 pm

  33. =And if it has a lot of hard-work jobs that few citizens want or can do?=

    Then you pass laws so children can do them. /s

    It’s no secret that we’ve relied heavily on immigrant labor to do the work that Americans don’t want to do. It’s a tired trope that they’re coming here to either “steal” our jobs or burden our welfare system.

    Comment by Pundent Wednesday, Sep 24, 25 @ 2:20 pm

  34. @Prudent

    =Then you pass laws so children can do them. /s=

    Obviously you feel the need to respond to my comment even though it has no relevance.

    Comment by Mason County Wednesday, Sep 24, 25 @ 2:41 pm

  35. =This nation needs a rational immigration policy. =

    Biden tried a bipartisan reform. Trump killed it. What is his new greatest idea ever? Spoiler alert- nothing.

    =This would be based upon those who have unique skills that can immediately productive without harming employment of our own citizens. =

    Trump has a personal history bringing people I. And jumping to the front t of the line even though they have zero skills. So tell me more.

    Comment by JS Mill Wednesday, Sep 24, 25 @ 3:23 pm

  36. “No, they just need good wages for tough jobs. Everybody needs to understand that.”

    That is anathema to the C-Suite.

    Comment by Odysseus Thursday, Sep 25, 25 @ 4:49 am

  37. ==Then you pass laws so children can do them. /s==
    Yeah, in Florida, they pass laws that target immigrants and undocumented people and then not long after, pass laws that let minors work more/later during school weeks. I forget what the reasoning was behind Arkansas letting more children work.

    I think that some folks have a nostalgic idea of teenagers working jobs, based on stuff from the 80’s or before, where you could have a summer job and that would pay off your college tuition… The arguments that I saw against raising the minimum wage were the idea that minimum wage was mostly just teenagers working fast food and teenagers don’t need more money. I wonder whether those folks realize that adults work fast food (and other minimum wage jobs) during the hours that teenagers are in school.

    Comment by BE Thursday, Sep 25, 25 @ 10:05 am

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