Trump border plan may cause inflation before robots help

CNN just aired Trump’s first inflation report—better than expected and reversing four straight months of rising inflation under Biden.

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— Libs of TikTok (@libsoftiktok) March 12, 2025

“I was with an Asian CEO that builds phones and they’re now applying AI robots — robots that have much more tensile dexterity, that they believe over the course of the next two years, their workforce will be down 30 percent with the advent of more technology and more robotics.”

The mega-investor has communicated these workforce concerns directly to Trump’s team, stating:

“With the whole idea that we’re going to have to use private capital to build up this economy, are we going to have enough workers? I’ve even told members of the Trump team that we’re going to run out of electricians as we build out AI data centers.”

These potential labor shortages could benefit American workers and their families through increased wages, while simultaneously encouraging companies to invest in productivity-enhancing technology. Such developments could prove advantageous for Republican politicians in the 2026 midterms.

During a World Economic Forum event in Saudi Arabia this April, Fink challenged conventional wisdom about population decline:

“I can argue, in the developed countries, the big winners are the countries that have shrinking populations,” he said. “That’s something that most people never talked about. We always used to think [a] shrinking population is a cause for negative [economic] growth. But in my conversations with the leadership of these large, developed countries that have xenophobic anti-immigration policies, they don’t allow anybody to come in — [so they have] shrinking demographics — these countries will rapidly develop robotics and AI and technology … If a promise of all that transforms productivity, which most of us think it will — we’ll be able to elevate the standard of living in countries, the standard of living for individuals, even with shrinking populations.”

BREAKING — Massive stock market rally underway as investors react to positive news which shows inflation cooling off
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— Election Wizard (@ElectionWiz) March 12, 2025

At a recent Houston event, Fink addressed immediate concerns about Trump’s deportation policies:

“I do believe deportations — and the speed at which it is happening — is going to have a severe impact on the agricultural sector [and] the construction sector. I’ve talked to CEOs in the ag sector, and they remind me that 70 percent of the men and women who work in agriculture were not born in the United States. Many are U.S. citizens. Now many of them have work permits and many of them don’t. Now 40 percent of the construction workers were not born in the United States. You add that up and what’s going on? I think … are we going to have enough workers to harvest the crops?”

While Biden’s high-migration approach kept wage inflation low, it led to increased consumer inflation as millions of migrants strained housing and other resources. Trump’s administration now faces the challenge of managing wage growth without triggering broader inflation. Currently, they’re focusing on deporting criminal migrants and those with existing deportation orders, while millions of previously sidelined American workers could potentially rejoin the workforce, helping to moderate wage pressures.