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Many believe restrictive immigration policies would create more job opportunities for native-born workers, but the data tells a different story. Similarly, protectionist trade measures and tariff implementations often fail to achieve their stated goal of reviving manufacturing sectors—instead, they frequently trigger job losses across supply chains.
The misconception stems from treating the economy as a static system with fixed labor pools and manufacturing capacity. In reality, modern economies are dynamic. Labor markets and production capabilities adapt, shift, and respond to policy changes in complex ways. Understanding these mechanisms is crucial for predicting how policy shifts impact employment, inflation, and long-term economic growth.