Tag Archives: immigration

High cost of immigration: GDP gets the sign wrong

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.

Continue reading

Immigration imposes a large net cost, and should be reduced

[I’ve posted on this before, but the issue keeps coming up.]

Jane O’Sullivan https://theconversation.com/profiles/jane-osullivan-1809

The dramatic drop in immigration because of the Covid-19 closure of our borders is causing concern among advocates of a high immigration rate, who claim it is essential to the economy. But there is a widely-overlooked and very large cost.

Discussing immigration in Australia is fraught, with any questioning of policy likely to generate outrage and to be labelled racist, populist, nationalist and an assault on Australia’s economy. All of that has followed Labor spokesperson Kristina Keneally’s rather mild suggestion that total numbers of immigrants ought to be lowered after the coronavirus shutdown, especially of temporary immigrants.

The rather hysterical response is partly just over-reaction, partly confected by those who support massive immigration, and partly reflecting common economic furphies.

Continue reading

Immigration debate: the menagerie in the living room

 

Many assertions are being made about Australia’s rates of immigration and population growth, but it’s hard to find a coherent discussion of the issue. There’s not just an elephant but a menagerie of ignored creatures lurking around the living room.

The elephant in the middle of the room is the cost to society of ‘durable assets’ for each new person, imported or home-grown. Durable assets include not just infrastructure like roads, trains, water and electricity but houses, shops and schools. That cost is sensibly estimated by sustainability researcher Jane O’Sullivan to be around $500,000 per person. Some of that cost is public, borne by governments, and some is borne by the private sector.

Continue reading

The Enormous Hidden Cost of Population Growth

[Published in the Canberra Times, 22 Feb 2016 and SMH 19 Feb 2016.]

CityWorkers Australia’s population just passed 24 million and former Australian Foreign Minister Bob Carr, unusually for a very public figure, reckons we’re growing too fast.

He cites the pressure on the housing market, clogged infrastructure, and the greater difficulty of limiting greenhouse gas emissions. At some point we will exceed the carrying capacity of the continent, and perhaps we already have. Those are all sound reasons, but they tend to be brushed aside by the growth lobby, partly because the numbers are hard to pin down.

But what if we knew that cutting immigration in half would save us $50 billion or more per year? According to some little-noticed papers by development economist Jane O’Sullivan, population growth costs us over $500,000 per person added.

Continue reading

What a realistic government agenda would look like

[This article was published by the Canberra Times 14 January, p. 19, under the title “Carbon price, wealth creation are critical issues this year”.]

Prime Minister Julia Gillard has declared that 2011 will be a year of accomplishment for her Government.  However many people are deeply frustrated that mainstream politics seems oblivious to new and dangerous issues, as global warming tightens its grip and the verities of old ideologies are found wanting.  There is a huge chasm between politics as usual and the issues we really should be addressing.

Continue reading