A heated exchange between prominent economist Justin Wolfers and Sen. J.D. Vance (R-Ohio) has reignited the debate over immigration’s economic impact, highlighting conflicting interpretations of federal data and academic research.
What Happened: The dispute began when Vance, former President Donald Trump‘s running mate, cited studies suggesting immigration increases housing costs and strains local budgets. Wolfers, a professor at the University of Michigan, swiftly countered, accusing the senator of misleading the public by selectively quoting from a Congressional Budget Office (CBO) report.
“Senator, you’re misleading folks again,” Wolfers wrote on X, formerly Twitter. “I just read the CBO report you recommend. It actually says that an immigration surge boosts federal revenues quite dramatically, and has only a small effect on mandatory spending and interest.”
At the heart of the disagreement is a CBO study on immigration’s fiscal effects. Vance highlighted a portion suggesting increased state and local government spending due to immigration. However, Wolfers argued this quote was taken out of context, emphasizing that the report primarily focused on federal budget impacts.