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2010-11-24

What should be important to consider on immigration by government?

Comments on Ross Gittins “Punters well aware of economic case against more immigration”, 24/11/2010, http://www.smh.com.au/opinion/politics/punters-well-aware-of-economic-case-against-more-immigration-20101123-185ij.html?posted=error
This is a good article with a balanced view on the issue of immigration from an economist – it is the per capita wellbeing of the local people/workers/labour that should be the first order issue to be considered by government and policy makers.

Most economists only talk about wage and its impact inflation but ignoring the political economy of impact on local wage earners of immigration and the required extra infrastructure.

Of course, the political economy of higher immigration benefits businesses, due to lower wages resulting from more labour supply.

A side issue is the view of taxation of mobile capital and labour and consumption. Business should be made to contribute to building infrastructure, as opposed to taxing less on capital, with consumption tax that is not too different from taxing labour more heavily in a different guise.

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