Economists to Politicos:
May 17, 2006
That economists and politicians view the world through a different set of glasses is not surprising, and immigration is a good example of how different those views are.
Marginal Revolution: Open Letter on Immigration
Immigrants do not take American jobs. The American economy can create as many jobs as there are workers willing to work so long as labor markets remain free, flexible and open to all workers on an equal basis.
How many of us believe that simple declaration? To the economist (and to me) the working of a free labor market is self-evident and easily demonstrated. To our elected officials it is counter-intuitive, so they take the popular position that immigration threatens American jobs. But job availability is not a zero-sum game where there are only so many jobs and a job taken by an immigrant necessarily means one less job for American workers. A free and healthy economy will indeed create as many jobs as there are workers available.
Dave, still fascinated with the way economies work.
Comments
4 Responses to “Economists to Politicos:”
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Experiencing growth needs in post WWII, the UK tried an open door to the Commonwealth. Now the island about the size of Illinois is populated with 55M people. Certainly a free economy, the UK finds that jobs are becoming more difficult to add. The immigration doors have closed. Yes, the UK is better than Commonwealth member India. So as an Indian, I today, too, would like to come to the UK as many did decades ago. Should 10 million more Indians arrive, methinks the population might say the quality of life is lessened…job or not.
Watch carefully the satuaration point for jobs in the USA. Our nation is strong many ways due to the large, ambitious middle class. Capital chases the lowest cost place for doing a task. Use care in playing the technology card since that may ultimately be refuted. We know equalization of wealth worldwide will occur with this redistribution…. but what role does immigration play? China and India are having their day in capital attraction. But will Mexico? Will our melting pot continue to simmer or fill and boil over with this growth? Certainly nothing is expected untoward during my life but these are glacial events.
The glass is half full but doing let it run over.
Hi Bob,
Don’t you have anything better to do than to read dumb blogs? Seriously, you make some valid points here, and a free market can certainly become saturated. Theory says that a vigorous and growing economy is a necessary part of the equation, which the UK may not have, in comparison with the US, and ours is showing a heap of strain.
But I think the economic principle is valid and should be part of the equation, even though the devil is in the details, like degree of border control, Mexico’s economic problems, and our political climate. I agree with your last paragraph.
Now that you’ve stated the problem so well, what is the solution?
I’ve thought the ideal was “full employment” not an economic theory. Full employment has wonderful consequences. Add uncontrolled immigration to our marketplace and full employment will not happen. There is a serious lag factor. Maybe a couple of generations of lag and most troublesome maybe never will all groups be assimulated into “full employment”. Look around that is happening. If the marketplace is so vigorious it requires added workers then invite those of all nations to come so the melting pot mix is just that: a mix.
That said, the solution is to let the marketplace LEAD the need for workers ( of all skills and types) and the immigration should LAG this LEAD.
Now, David, a great manager should be able to implement this.
Since when have we been able to elect “great managers?” If such a manage exists, I’m sure that he/she would be unelectable.
So our leaders will continue muddling along as usual, and the rest of us will continue to enjoy more freedom and prosperity than we deserve, given the leadership we elect. ‘Twas ever thus and may it continue forever and ever amen.