Overview

• Paul Krugman used a Wednesday Substack post to argue the administration is “about to ICE the economy” through an intensified immigration crackdown.
• He writes that undocumented immigrants make up roughly 5% of the U.S. workforce but are clustered in key industries, amplifying the risk of supply disruptions.
• Krugman contends that arrests and deportations would ultimately inflict more economic damage than tariffs, worsening consumer price pressures.
• He cautions that enforcement could also sweep up legal workers, referencing concerns raised by officials’ rhetoric about targeting based on appearance.
• The warning lands as the administration touts tougher policies and expanded enforcement, with officials publicly urging those in the country illegally to leave.