It effects it in two ways.
It bottoms out the minimum wage. This has two effects. One it devalues the amount non skilled work pays while at the same time increasing taxation on the middle class eating away at their spending power.
The second it heavily stresses public utilities that either degrade or require even more tax funding.
Immigration to a country only works if you take a very small number of immigrants for roles that your society LACKS Doctors, engineers, and pretty much anything with a stem doctorate.
This is a relatively new reality back in the day just a short thirty to fifty years ago depending on how you measure it. The states had enough low skilled labor it could afford immigration with a more open door policy.
Unless we adapt extremely harsh tariffs though the factory work to maintain such a system is never coming back and we are left with our current situation.