Mass deportations would be detrimental to California economy, study says

FRESNO, Calif. (KFSN) -- Businesses are seeing a slump statewide and across industries, from flea markets and retail shops to restaurants.

Researchers interviewed businesses up and down California and say the San Joaquin Valley and Bay Area, along with Los Angeles and the Inland Empire in the Southland, would see the greatest impacts.

"Business has been going not-so-well ever since the ICE raids started. Less and less people have been coming. They've been scared to come out of their homes," said Angela Aguilera, a Merced business owner.

A new report from UC Merced, in partnership with The Bay Area Council Economic Institute, says mass deportations would be detrimental to the state's economy.

"A mass deportation in California could cost the state up to $275 billion in lost gross domestic product, and this is because undocumented immigrants are really intricately tied to our communities and the economy of the state," said Maria-Elena Young, assistant professor at U.C. Merced.

Young said ultimately all Californians will feel the economic costs, especially small businesses.

"Immigrants are the backbone of small businesses across the state. Particularly in areas like in the Valley, where we have really small towns that are economically struggling. People told us time and time again, it's those small businesses that give vibrancy that give vibrancy here in the Valley," said Young.

40 percent of small businesses in California are immigrant-owned. 10 percent of those are owned by undocumented immigrants.

Young said the impacts are already being felt.

"It's heartbreaking. It's heartbreaking that people are not coming out. It's affecting a lot of people, kids, women, fathers, grandparents," said Aguilera.

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