Minneapolis Businesses Face Economic Chill as ICE Fears Grow
Immigrant-owned businesses in Minneapolis are grappling with a significant downturn in sales, fueled by anxieties stemming from recent Immigration and Customs Enforcement (ICE) activity. The impact is already visible, with some establishments facing closure and a broader economic ripple effect felt throughout the city.
The $200 Million Impact: A City Under Pressure
The City of Minneapolis estimates that closures and reduced spending within immigrant communities have resulted in a roughly $200 million hit to the city’s revenue. This substantial loss underscores the critical role immigrant-owned businesses play in the local economy. Dr. Bruce Corrie, a local economist, emphasizes the severity of these closures: “When a restaurant, for example, closes, there’s no recovery there.”
Village Halal Market: A Microcosm of the Crisis
The struggles are acutely felt at the ground level. At Village Halal Market, daily sales have plummeted from approximately $600 before Operation Metro Surge to a mere $20. “We’re just trying our best,” says Saed Gedi, an employee, reflecting the desperation felt by many business owners. The owners have launched a GoFundMe campaign in a bid to stay afloat.
The Broader Economic Significance of Immigrant Spending
Immigrants in the Twin Cities wield considerable economic power, holding $14.5 billion in spending power and contributing $5.3 billion in taxes annually, including $2.0 billion in state and local taxes. This highlights the potential for wider economic consequences if the current climate persists.
Long-Term Recovery: A Climate Dependent Future
Economists predict a lengthy recovery period. Dr. Corrie doesn’t anticipate a swift turnaround, stating it will “seize some time, months in the current climate.” The speed of recovery hinges on a shift in the prevailing atmosphere and a return of consumer confidence and spending.
Beyond Minneapolis: A National Economic Ripple
The economic fallout isn’t confined to Minneapolis. Dr. Corrie points out that reduced incomes and job losses among immigrants will also impact federal tax revenues, including Social Security and Medicare taxes. This underscores the interconnectedness of the national economy and the contributions of immigrant communities.
The “Goose That Lays the Golden Egg”
Dr. Corrie warns of the potential for long-term damage, stating that continued losses could “wound the goose that’s laying the golden egg” – referring to the vital role of immigrant businesses in driving economic growth.
Hopeful Signs and the Path Forward
Despite the challenges, Dr. Corrie remains optimistic. He believes Minneapolis’s inherent energy and community bonds can be leveraged to overcome the current difficulties. “Coming together around something common” is identified as key to accelerating the recovery process.
Did you know?
Nearly 60% of Minnesota’s total labor force and employment growth from 2019 to 2023 came from foreign-born workers.
FAQ
Q: How significant is the impact of ICE activity on Minneapolis’ economy?
A: The City of Minneapolis estimates a $200 million hit to revenue due to closures and reduced spending.
Q: What is contributing to the decline in sales for immigrant-owned businesses?
A: Fear related to recent ICE activity is keeping customers away from these businesses.
Q: How long will it take for Minneapolis to recover economically?
A: Economists predict a recovery period of several months, dependent on a change in the current climate and a return of consumer confidence.
Pro Tip
Support local immigrant-owned businesses to support bolster the Minneapolis economy and show solidarity with the community.
For Related Stories: Economy ICE Immigrants Kamaria Braye Minneapolis
Explore more: Learn about the economic contributions of immigrants in Minnesota here.
