Tuesday, March 24, 2015

Immigrants aren't oranges.

An exceptional piece arguing for more open immigration in today's New York Times;
Few of us are calling for the thing that basic economic analysis shows would benefit nearly all of us: radically open borders.
And yet the economic benefits of immigration may be the ­most ­settled fact in economics. A recent University of Chicago poll of leading economists could not find a single one who rejected the proposition. (There is one notable economist who wasn’t polled: George Borjas of Harvard, who believes that his fellow economists underestimate the cost of immigration for low-­skilled natives. Borjas’s work is often misused by anti-immigration activists, in much the same way a complicated climate-­science result is often invoked as “proof” that global warming is a myth.) Rationally speaking, we should take in far more immigrants than we currently do. 
So why don’t we open up? The chief logical mistake we make is something called the Lump of Labor Fallacy: the erroneous notion that there is only so much work to be done and that no one can get a job without taking one from someone else. It’s an understandable assumption. After all, with other types of market transactions, when the supply goes up, the price falls. If there were suddenly a whole lot more oranges, we’d expect the price of oranges to fall or the number of oranges that went uneaten to surge. 
But immigrants aren’t oranges. It might seem intuitive that when there is an increase in the supply of workers, the ones who were here already will make less money or lose their jobs. Immigrants don’t just increase the supply of labor, though; they simultaneously increase demand for it, using the wages they earn to rent apartments, eat food, get haircuts, buy cellphones. That means there are more jobs building apartments, selling food, giving haircuts and dispatching the trucks that move those phones. Immigrants increase the size of the overall population, which means they increase the size of the economy. Logically, if immigrants were “stealing” jobs, so would every young person leaving school and entering the job market; countries should become poorer as they get larger. In reality, of course, the opposite happens.
Read the whole thing here - it does a great job of going through and giving the arguments against the common economic arguments against more open borders.

1 comment:

Jeremy said...

I couldn't agree more. It only makes sense tin hat people come here for a better life and are willing to work for it. It's a proven fact that immigrants in Canada are the best integrated and assimilated in any democratic nation. Dr. Will Kymlicka, Tim Wise and Senator Don Oliver have all endorsed exclusive immigration of visible minorities in liberal democracies as a means of offsetting racism and increasing much needed diversity. Open borders and open immigration, of strictly people of colour, will certainly benefit society and encourage human growth and culture.