Monday, November 16, 2015

The Economic Imposition of Immigration

A lot of people wonder why European Countries and the USA are allowing huge amounts of immigration.  With recent terror attacks this question is on the minds of a lot of people.   The answer is simple; it is economics.  First lets look at natural population growth. 


A loot at fertility rates per country show that most European countries are under 2 and the United States is just above 2.  2 is the rate needed for replacement.  This isn't even the actual birth rate which tends to run lower.  So Europe and the United States have a naturally reducing population due to birth rates.  So does Japan, but I will come back to them later. 


Now look at the way we judge economics in these countries.  In order for the economy to be strong it must always be growing.  More growth depends on more people.  A naturally reducing population is the enemy for any nations economy.  A way to offset this is to increase immigration from other countries.  It adds more consumers to the economy and strengthens it.  The immigrants will also likely have a higher birth rate initially, again spurring growth. 


Then there was Japan.  Japan has huge restrictions on immigration.  They also have a 1.4 fertility rate, well below replacement rate of 2.  Their population is in a tailspin.  Guess what the result has been.  If you said economic recession, you can collect your cookie on the way out.  The recession also affects consumer confidence and makes them not want to have kids due to the economic stresses on their family. 


What is the answer?  If we don't allow immigration we are on a certain road to economic recession.  The amount of immigration needed to increase birth rates can drastically change the cultural identity of the country accepting the immigrants. Belgium is dealing with a large group of immigrants that want to institute Sharia Law. 


Countries like South Korea and Japan actually pay parents a stipend to have children in order to increase the population. It is a pittance and doesn't really have much affect. 


The only other situation is to change how we look at economics.  If we base the rate of growth on the number of consumers instead of as a dollar amount that is compared to last years dollar amount, it would show actual growth and not just the number of consumers.  Maybe a country needs more people, they have wide open lands, low unemployment, and no traffic issues.  Maybe they can filter them in and retain the countries identity while not alienating the cultural identity of the person immigrating.  Maybe, but our current immigration policy and the policies of European countries are not there, and need to be reevaluated. 


You cannot allow people into your country blindly just because you need consumers to grind away in your economic system. 

3 comments:

Alex J. Cavanaugh said...

No you can't. And sad those ISIS terrorist came into France as refugees.
Our production rate is only two? Seems much higher.

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