Mises Wire

The Dual Tax of Empire: Funding More War and More Immigration

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The American empire is routinely scrutinized for its staggering financial deficits and its tragic toll on human life overseas. Yet, the most enduring and permanent legacy of Washington’s endless wars is rarely debated or discussed: mass demographic engineering. For decades, the foreign policy of the United States has operated as a relentless engine of human displacement. The state projects military power abroad under the guise of spreading democracy or securing global stability, only to fundamentally transform America in the process.

The political class commits the American public to overseas interventions by arming proxies, imposing crippling sanctions, or launching direct military invasions. These actions inevitably destabilize regions, collapse local economies, and uproot millions of civilians from their homelands. But rather than containing the fallout of its own hubris, the imperial state institutionalizes the blowback. Through a sprawling apparatus of state-funded refugee programs, parole initiatives, and temporary worker visas, the federal government imports the very populations it displaced directly into America. Although in a different context, Robert Higgs warned of the “ratchet effect” which is the phenomenon where a government intervention creates a crisis, which the state then uses to justify yet another intervention.

Americans are forced to pay a dual tax for the empire: first, to fund the munitions, intelligence operations, and equipment that shatter foreign nations; and, second, to subsidize the integration of the resulting diaspora directly into American communities. Crucially, the American people or American states never voted for this. They did not vote to uproot millions of people overseas, nor did they vote to fundamentally alter the demographics of their own nation to accommodate the casualties of Washington’s imperial drift. Presidential campaigns, of course, deliberately obscure this reality from the electorate. After all, no grassroots movement of American citizens has ever demanded endless war and state-sponsored mass migration as a strategy to improve the nation.

There is a crucial distinction between economic ruin and demographic ruin. When a central bank destroys purchasing power through fiat inflation, the damage, while devastating, is theoretically reversible. A nation can eventually return to a gold standard, slash federal spending, or endure a severe deflationary correction to purge malinvestment from the system. Although uncommon, economic policies can be repealed. However, with demographic transformation, you cannot easily reverse engineer a nation’s cultural and demographic foundation once it has been fundamentally altered by statecraft.

American history is replete with examples of foreign intervention directly resulting in massive domestic demographic shifts. To grasp the sheer scale of this state-engineered transformation, one only has to look at the baseline demographic data from the dawn of the American empire following World War II compared to today. According to the US Census Bureau, in 1950, the country was composed of around 87-89 percent white, 10 percent black, and roughly 1.5 percent of Hispanic origin, with the foreign-born share steadily declining toward a historic low in 1970 of just 4.7 percent. As of 2025, the US foreign-born population reached an all-time high of nearly 52 million people, constituting over 15.4 percent of the total population. This share officially surpasses the previous historical peak of 14.8 percent recorded during the Ellis Island era in 1890. Yet, unlike the organic immigration of the nineteenth century, a vast portion of today’s diaspora was directly catalyzed by the imperial state’s own foreign policy failures.

For instance, when the United States intervened in Cuba’s revolt against Spain in 1898, it permanently entangled American foreign policy with the island, setting the stage for decades of intervention that culminated in the Cold War and the Castro regime. Today, there are over 1.3 million Cuban immigrants residing in the United States, a direct legacy of those cascading interventions. That same 1898 intervention expanded into the Pacific, leading to the annexation of the Philippines and the brutal Philippine-American War. This violent subjugation permanently tied the United States to the archipelago, resulting in the mass migration of Filipinos who now constitute one of the largest Asian demographic groups in America.

This demographic ratchet accelerated exponentially during World War II. Because the federal government drafted millions of American men to fight a global conflict, it created a domestic labor shortage. To resolve a crisis of its own making, the state intervened by creating the Bracero Program in 1942. Under this bilateral agreement, the US government issued 4.6 million contracts to Mexican laborers to primarily work in American agriculture. While billed as a temporary wartime measure, the program lasted over 20 years and laid the foundation for the sprawling, multi-generational Hispanic migration networks that radically transformed the demographic makeup of the American Southwest and was solidified with President Reagan and company providing amnesty to over 2 million undocumented Mexicans and hundreds of thousands other groups of undocumented immigrants.

Another example is the Korean War, which left millions displaced and permanently tethered South Korea to the American military-industrial complex, initiating waves of immigration via war brides, adoptions, and subsequent familial migration that brought millions of Koreans to the US over the following decades.

Following the disastrous and undeclared war in Vietnam, the US intervention resulted in the complete destruction of Southeast Asian stability. What began as a wartime evacuation of 125,000 Vietnamese in 1975 quickly metastasized into a massive resettlement program. Today, there are over 1.3 million Vietnamese immigrants in the United States. The CIA’s “Secret War” in neighboring Laos yielded identical blowback. The US government recruited the ethnic Hmong to fight proxy battles against communist forces; when the operation collapsed, over 100,000 Hmong refugees were displaced and subsequently funneled into American cities.

In 1953, the CIA orchestrated the overthrow of Iran’s government to install the Shah, committing Washington to decades of propping up an autocrat. When the inevitable anti-Western revolution erupted twenty-six years later, it triggered an exodus. Through federal refugee pipelines like the Lautenberg Amendment, the government subsidized the resettlement of displaced Iranians, resulting in a permanent diaspora of nearly 400,000 individuals now residing in the United States.

In the 1980s, Washington’s covert interventions in Central America created a human tidal wave that continues to overwhelm the US southern border. In nations like El Salvador, Guatemala, and Nicaragua, the US government spent the decade funding right-wing governments, arming rebel contras, and fueling brutal civil wars. These proxy conflicts destroyed local economies and resulted in tens of thousands of civilian casualties, causing massive waves of Central Americans to flee northward. By 1990, the Central American population in the US had more than tripled. Today, there are over 4.3 million Central American immigrants residing in the United States, representing 9 percent of the total foreign-born population. Rather than organic immigration driven by market forces, this was a multi-generational crisis engineered by the CIA and the State Department.

Further, in the 1990s, American intervention in the Balkans resulted in the domestic resettlement of more than 107,000 refugees from the former Yugoslavia, altering the demographic landscape of cities like Chicago and St. Louis.

Simultaneously, US military entanglements in the Horn of Africa, marked by the infamous “Black Hawk Down” incident and followed by decades of subsequent drone strikes, displaced millions of Somalis. The government quickly began funneling these displaced populations directly into America. Under the Obama administration alone, the United States resettled roughly 43,000 Somali refugees. In states like Minnesota or Maine, the mass importation of Somalians was not driven by local community consent or organic labor demand, but by federal mandate. Americans funded the bombs that displaced the Somalis overseas, and were forced to fund their municipal integration domestically.

The twenty-first century’s “War on Terror” operated on the exact same paradigm. Following the disastrous 2003 invasion of Iraq, the US admitted tens of thousands of Iraqi refugees, with 12,000 arriving in 2008 alone. In Syria, Washington’s insistence on arming rebel factions to depose Bashar al-Assad—serving as a proxy conflict to benefit regional ally Israel—fueled a civil war that displaced millions. As a direct result, the Syrian immigrant population in the United States doubled to over 122,000 between 2011 and 2021, with over 18,000 Syrian refugees formally resettled in just the five-year period ending in 2016.

In 2021, with the botched withdrawal of Afghanistan, the Biden administration utilized executive authority to rapidly parole over 70,000 Afghans into the United States through “Operation Allies Welcome,” a fraction of the broader million-plus regional diaspora shattered by twenty years of occupation. And today, as Washington continues to funnel hundreds of billions of dollars to fuel a proxy war with Russia, the demographic consequences are materializing. Since February 2022, the Department of Homeland Security has admitted more than 250,000 Ukrainians into the United Kingdom and United States.

Rather than allowing private charity to address these refugee flows, the imperial state has institutionalized human displacement through a lucrative ecosystem of taxpayer-funded, non-governmental organizations. The federal government funnels billions of dollars through the State Department’s Bureau of Population, Refugees, and Migration and the Department of Health and Human Services. These agencies distribute federal grants to private voluntary organizations such as the Catholic Charities USA, Global Refugee (formerly Lutheran Immigration and Refugee Service), the International Rescue Committee, and many more. For instance, in June 2025, Global Refugee was one of 215 NGOs the US House of Homeland Security Committee noted as having received federal funding during the Biden administration to settle undocumented immigrants in the United States. These organizations function as subsidiaries of the administrative state, often receiving the vast majority of their operational funding directly from federal coffers. They transfer the fiscal burden of imperial aggression directly onto local municipalities, public schools, and healthcare systems across America.

So, what is the lesson? One intervention always begets another. The empire is not spreading freedom abroad; it is consuming the capital stock and the social fabric of the American people from within. Until Americans recognize that foreign interventions are the direct engine of both domestic impoverishment and massive, non-consensual demographic alteration, the Leviathan will continue to march forward, leaving shattered nations overseas and a bankrupt, unrecognizable America in its wake. Today, as Washington drops bombs across the Middle East, the most pressing question isn’t just how many taxpayer trillions will be incinerated. The real question is: how many more will be displaced and arrive in the US from current nonsensical intervention?

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