Joseph C. Barsalona II Quoted in The Deal, “Restaurants, Agriculture Brace for Tighter Immigration”

Joseph C. Barsalona II, partner in the Bankruptcy, Restructuring and Creditors’ Rights practice at Pashman Stein Walder Hayden P.C., was recently quoted in an article in The Deal titled, “Restaurants, Agriculture Brace for Tighter Immigration.” The article discusses how stricter immigration policies may further strain industries such as restaurants and agriculture, where undocumented immigrants play an outsized role in the labor force, should former President Donald J. Trump win a second term in this year’s election.

"I'm expecting a very dramatic impact very early in a potential second term for former President Trump," said Joseph C. Barsalona II. “He’s remained vocal about the border, is quick to attack President Biden on his policies regarding the same, and I think the next four years will see a seismic shift on that issue."

"Once labor tightens, you are going to see across-the-board distress and not just in [restaurants and agriculture], especially in states that have higher minimum wage laws," said Barsalona.

While there is no historical precedent for the scale of deportations envisioned by Trump, there's historical precedent — and lessons to be learned — from smaller but nonetheless systemic deportations. In 1942, to fill gaps in the labor force caused by the Second World War, the United States invited hundreds of thousands of Mexican workers — called braceros — into the country. In 1964, however, fearing that their presence depressed the wages of American workers, Congress allowed the program to expire, in what remains the largest process of deportation in American history. Among the results, according to a Centre for Economic Policy Research study, wasn't a sudden surge in agricultural employment among U.S. workers: Rather, some farms simply began investing in technology instead, while others went out of business.

"The real question will be if any of these businesses in these locations are worth reorganizing or will most of them liquidate? I'm fearing the latter," said Barsalona.

To read the full article in The Deal, click here.