The Indicator from Planet Money · Monday, August 31, 2026
A professor at the University of Pennsylvania has found that the current ICE enforcement strategy creates an 'economy of fear' that harms local commerce. The research indicates that businesses experience a permanent drop in foot traffic and consumer spending following ICE activity, with effects lingering long after arrests cease.
“Now what's different is that ICE is a permanent roving presence in a community. ICE goes and stays and stays for weeks, months.”
“Specifically, a 3% decline in foot traffic to workplaces and retailers, and a 7% decline in consumer spending between 2024 and Trump's first year in office.”
“I expected that these effects would eventually go away after a few weeks, right? ICE targets a location, leaves, you know, and businesses go back to normal. Uh, that's not the case. The effects do not go away.”