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There's no step 2. They think that displacement of immigrants will fix the medical system, raise wages, create free labor, and make their children speak to them again
Why? Because every problem can be attributed to "the enemy", and so removal of "the enemy" will fix everything
It's the core of fascism, if they somehow succeeded "the enemy" would transition from brown people to dissenters and then "fake" fascists or impure bloodlines or something
There must always be an enemy, because a fascist movement runs on hatred for "the enemy"... That's the whole plan
I read the question more asking what would happen. You said some good stuff so I'll add to it
It's irrational. Immigrants make up so much od the U.S. population. If there's 20 million of them that's ~15x more than had died from covid. (I have no idea how many immigrants there are in the U.S.) Effectively gone. Not to mention all the U.S. citizens who would follow their family members outside the U.S.
The U.S. is a farm product exporter. U.S. farmers are already in a crisis and rely on federal subsidies due to shortage of labor on top of expensive equipment and seeds.
Additionally, the communities they previously resided would be poorer. Less money spent, less friends at school (also: less funding!) Etc.
Also crappier, more expensive, rarer goods and services (less workers at restaurants, auto shops, etc.)
There's also international consequences. The U.S. has always been mostly immune to other counties whims, but that can change. Europe is a big force now. China. Etc.
It's just some bullshit to keep people mad and facists in power.