Unemployment is caused by immigration. All these immigrants from Eastern European countries, Pakistan, Australia, America - everywhere you go.
Get rid of them and you get rid of unemployment.
“Immigrants who come over here are willing to work for lower paid jobs and thus they create unemployment for local people.”
Yep - it's simple.
Immigrants take jobs that natives won't do - and these people then sign on for Job Seekers Allowance and a host of other benefits. Remove the immigrants and then the jobs would be there.
If I employ an immigrant then I pay the immigrant (or any labour, for that matter) less than the value of his/her output - how else would I make a profit? Thus the immigrant adds less to the demand than to the supply - thus excess supply, thus unemployment.
Immigrants pay tax, sure but that's out of their wages paid by me. So their disposable income PLUS the tax they pay is less than what they produce. Therefore supply > demand.
Having low unemployment and high immigration does not disprove this either. Where demand exceeds supply there is a need for labour up to the point where demand is met by supply. When this is met any extra labour will be unemployed. If part of that 'excess' is made up of immigrants then they are unemployed (but may not be claiming and so will not show in official statistics). Some of those working will be immigrants thus remove them and unemployed natives can take their jobs.
Is there anything wrong with the logic above?
MCQ Walkthrough 9708/32 (India) (Q21 - Q30)
8 months ago