By Juliana Vasquez | Staff Writer
Long wishlists and tight deadlines aren’t the only things stacked against consumers this holiday season. Prices are rising due to a policy put in place by Washington over the past year.
Politics and the economy go hand in hand, with the policies enacted by those on Capitol Hill playing a role in the cost of items you shop for at H-E-B.
Chair of the Economics Department Dr. Van Pham said the largest policy changes that will impact consumers are regarding the Liberation Day tariffs and the increase in immigration enforcement.
“The tariffs are the big one … it’s a tax on all goods coming into the U.S., so it’s going to raise the cost of goods that retailers see,” Pham said.
Frank Enriquez, a political science professor who also studies immigration policy, said the crackdown on immigration will affect the food and labor industries.
“The loss of the workers in that supply chain comes the inability of these companies … to dish out as much product as they used to,” Enriquez said. “So that’s where you’ll see probably less supply with the continued demand, especially in the holidays.”
The U.S. Bureau of Labor Statistics found that in 2023, 29.1 million of the U.S. labor force consisted of foreign-born workers, including undocumented ones. Additionally, the Center for Migration Studies stated that “to deport all undocumented persons in our nation, such an operation would cause a severe strain on U.S. citizens, as labor shortages would accrue and inflation would rise.” This is what consumers are beginning to see now.
The price increases restrict the discounts retailers can provide, Pham said which was reflected this past Black Friday and Cyber Monday. CBS News identified a business owner who had to scale back discounts, with the owner “noting that the decision was ‘100%’ related to tariffs.”
For immigrant communities, tightened immigration policies will dramatically influence the holiday spirit, particularly for those who know someone who has been deported, Enriquez said.
“You want your loved ones to sit next to you and enjoy a family meal or go to a holiday concert or something, but [they] can’t even do that anymore because their loved one is somewhere else,” Enriquez said.
As students go into the holiday season and holiday shopping, Pham said these price changes will impact a wide variety of industries, including technology, toys, food and apparel.
“I would say everyday consumption and stuff that you usually buy for gifts [is affected],” Pham said.
Dr. Patrick Flavin, chair of the political science department, said these shifting policies and rising prices are a stark reminder for students to pay attention to what’s happening in Washington.
“Politics is not just something that plays out in Washington, D.C., that we see on the news,” Flavin said. “The choices made by the people that we elect to represent us really have immediate consequences.”
With rising prices, though, Pham hopes maybe the expenses will remind consumers of the reason for the season.
“I hope maybe there’s a silver lining here that this brings us back a little, getting away from the consumption and just enjoying the spirit of Christmas,” Pham said.
