Tag Archives: racism

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.

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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.

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