4 Ways Trump’s Travel Ban Could Hurt the U.S. Economy

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

An expert predicts negative effects on everything from tourism dollars to education spending.

During the 2016 presidential campaign, candidate Donald Trump floated the idea of banning travel from some predominantly Muslim countries to the U.S.

At the time, a nonprofit organization — the Council on Foreign Relations, or CFR– quietly shared a report on how such a ban would affect the U.S. economy.

Now that President Trump has acted on his idea, the CFR is calling attention back to its report.

In a blog post this week, Robert Kahn, an international economics fellow at the CFR, notes that “the effects of extreme vetting on U.S. economic activity are immediate and far-reaching.”

Before we look at those effects, though, let’s take a look at the president’s action.

The executive order

On Friday, Trump signed an executive order titled “Protecting the Nation From Foreign Terrorist Entry into the United States.”

As a New York Times report summarized it, the order:

  • Indefinitely barred Syrian refugees from entering the United States
  • Suspended all refugee admissions for 120 days
  • Blocked citizens of seven Muslim-majority countries, refugees or otherwise, from entering the United States for 90 days: Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen.

Since then, protests have broken out and CEOs of major corporations have spoken out against the ban.

On Sunday, Trump issued a follow-up statement:

“… The seven countries named in the Executive Order are the same countries previously identified by the Obama administration as sources of terror. … This is not about religion — this is about terror and keeping our country safe. …”

The possible effects

According to the Council on Foreign Relations, the possible economic effects of a travel ban, “particularly if the president’s order is expanded to include more countries over time,” include a:

  1. Broader “chilling effect” on travel to the U.S., which could depress tourism and disrupt supply chains, among other impacts.
  2. Direct loss of spending as high as $14 billion to $30 billion per year.
  3. Loss of as many as 50,600 to 132,000 jobs.
  4. Loss of $4.6 billion in education spending by foreign students.

Kahn concludes by stating that “an efficient vetting system for foreign travelers” can benefit security. But if Trump’s vetting “… is seen by the world as creating a hostile environment for foreign travelers or more fundamentally signaling a less open attitude towards the world, it will have broad based and far reaching economic consequences.”

What’s your take on possible economic repercussions of travel restrictions? Sound off below or on Facebook.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 8 Ways to Get Your FICO Score for Free

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 2,053 more deals!