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31 Aug 2026
7m

How ICE arrests are creating 'economies of fear'

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The Indicator from Planet Money

Aggressive immigration enforcement by Immigration and Customs Enforcement (ICE) is creating a persistent "economy of fear" that negatively impacts local commerce and long-term investment. Research conducted by University of Pennsylvania professor Zeke Hernandez reveals that when ICE establishes a roving presence in a community, businesses experience a 3% decline in foot traffic and a 7% drop in consumer spending. These economic downturns are not temporary; data shows that spending and foot traffic often remain permanently lower even after enforcement activity subsides. This chilling effect extends beyond undocumented populations to include US citizens and non-Hispanic residents who avoid public spaces out of fear or general unease. In San Antonio, the proposed opening of a new ICE processing facility threatens to undo decades of economic development in racially diverse neighborhoods by acting as a deterrent to both entrepreneurs and customers, potentially cementing a cycle of disinvestment.

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