Spending in Orange County decreased by about 25% after immigration enforcement ramped up last summer, according to a study by UC Irvine\u2019s Social Impact Hub.<\/p>\n
Study authors also analyzed data from the California Department of Tax and Fee Administration to find Orange County saw economic output drop by $58.9 million over an eight-week period last year, coinciding with ramped up ICE enforcement, leading to $4.5 million less in sales tax.<\/p>\n
\u201c\u200aI wish I could say I was surprised or shocked. I’m really not,\u201d said O.C. Supervisor Vicente Sarmiento, whose office partnered with the study authors to create and distribute the study survey among business communities. \u201cI think what the results and findings showed was that we can quantify the impact that all of us logically believe is occurring.\u201d<\/p>\n
Sarmiento added that the results show it\u2019s not just the labor supply, where industries like construction and hospitality are heavily reliant on immigrants, that is affected by immigration raids.<\/p>\n
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\u201c\u200aWe also are seeing that there is a demand side that is affecting our economy, meaning that there are countless consumers from the immigrant and undocumented population that have significant purchasing power,\u201d he said.<\/p>\n
After President Donald Trump promised to carry out the \u201clargest deportation operation\u201d in U.S. history, Southern California became the epicenter, with federal agents carrying out raids across the region, including in Orange County. And they haven\u2019t taken their foot off the gas, causing prolonged periods of fear and uncertainty for businesses that can be difficult to sustain, Sarmiento said.<\/p>\n
\u201cSmall businesses, especially ones that don’t have reserves and don’t have excess funds on hand to be able to sustain themselves, will probably end up failing and will probably end up closing down,\u201d he said.<\/p>\n
Small-business owner weighs in<\/p>\n