Much of the alleged economic benefit of high immigration is actually a very large cost. GDP is not accounting, and its misuse as a measure of welfare distorts our priorities, in this case egregiously.
[Can’t seem to interest anyone in this argument. Looks like it can’t be right I suppose.]
Kristina Keneally, Labor’s immigration spokesperson, recently set the dogs barking again by arguing that the rate of immigration after covid-19 should be lower than the previous very high rate. She argued that we should look to get Australians back to work before importing more people (though her choice of phrasing could have been better).
The sudden dramatic drop in immigration is evidently of great concern to some, judging by a spate of opinion pieces at the ABC (e.g. here and here) and elsewhere reiterating the usual claim that a high immigration rate is good for the economy, or even essential to the economy.
Why would the Government buy bonds as it sells bonds? Why would it borrow money when it has its own money?
Various explanations have been appearing lately that purport to explain how the Government is raising the money it is suddenly splashing around to support (some) people through the Covid-19 shutdown. There are also explanations of how the Reserve Bank of Australia is engaging in ‘quantitative easing’ (QE) to support the economy through the shutdown and beyond.
It seems there may be at least three things happening: the RBA is buying bonds in order to inject extra money (‘liquidity’) into the financial sector and keep interest rates low; the RBA is funding some spending by the Government; the Government is borrowing money from the private sector by selling bonds.