This sounds right. If this flow continues without limit, all people in poor countries would move to rich countries to work, resulting in overcrowding in rich countries and empty poor countries.
Not a logical conclusion.
The only alternative is to provide poor people with the means to support themselves and their families in their home countries, with investment and with open markets. Not talk, action!
Are you listening Mr. Peter Mandelson (European Union) and Ms. Susan Schwab (USA)?
Onésimo Alvarez-Moro
See article:
Increasing life expectancy and declining birth rates are leading to big fiscal problems throughout Europe. Without fundamental changes, the rise in the relative number of older people and the slower growth of the labour force will substantially raise government outlays for pensions and healthcare.
A common reaction to this problem is a call for increased immigration. The taxes paid by these new workers would help to finance the benefits of the aged. Although there is general discomfort with some of the social consequences of increased immigration, many have concluded that increased immigration is the only way to avoid a big increase in tax rates or a cut in benefits.
However, a little analysis shows that even a very large increase in immigration would have only a very small impact on the revenue needed to deal with the ageing population. Much of the tax paid by the new workers would be needed to finance the government benefits that they and their families consume – especially for healthcare and education. It is necessary, therefore, to ask how much net revenue is created by immigration and how that additional revenue relates to the increased number of immigrants.
See full Article (paid subscription required).
Posts
