More Evidence of Immigration Driving Wages Lower
From down undah.
MacroBusiness: The evidence is clear: immigration reduces wages
On the specific issue of whether immigration lowers incumbent workers’ wages, the PC’s view is clear. In 2006, the PC completed a major study on the Economic Impacts of Migration and Population Growth, which modelled the impact of a 50% increase in the level of skilled migration over the 20 years to 2024-25 and found that the benefits from increasing skilled migration accrue to the migrants themselves and wealthy capital owners, whereas existing resident workers are made worse-off.
One way you will see the goal posts shifted in the immigration debate is the pro-immigration side will say immigration is good for the economy. What economy? They are talking about national GDP, not GDP per capita. If a nation created a “foreign zone” and banned any natives from entering, and any foreigners from leaving, national GDP would rise because economic activity in the foreign zone counts towards GDP. They’ll also count small shops as adding to GDP. For instance, if lots of Koreans move in and open a Korean-lanuguage laundromat to service the Korean community, it improves GDP growth, but doesn’t increased demand for native labor. This is with a good immigrant community that can provide for itself. Most immigrants coming in the West require subsidies and generational studies indicate the subsidies will never end.
The bottom line is that running a high immigration program requires massive investment and costs a lot, and these costs are borne to a large extent by the incumbent population.
Therefore, if you want wages to be reduced, traffic congestion to get worse, to pay more for utilities and housing, and to see the environment get degraded, then continue with current mass immigration settings. But if you care about maintaining Australian living standards, then immigration needs to be slashed to sensible and sustainable levels.
An interesting question is did economists, sociologists, et al forget the law of supply and demand, and impact on native wages, home prices, school overcrowding, crime rates and on and on? Or were they cowed into silence by political correctness? If the latter, what changed? Social mood. People who were quiet before are ready to fight because social mood is changing. The public is becoming more receptive to these arguments.