Sunday

Unemployment

Unemployment is caused by immigration. All these immigrants from Eastern European countries, Pakistan, Australia, America - everywhere you go.

Immigrants.

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?
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2 comments:

  1. CHEE9 March 2009 at 22:33

    First of all, there are two types of immigrants in this case. low-skilled( language difficulties, lack of knowleage for technology,etc) immigrant which come over to do basic work such as waiter or waitress that native people most probably would not like to do. so, there is pretty spaces left for natives.In addition, they are not aware of using public services (health care), there is less goverment spending on them.

    Secondly, immigrants with speacialised technology such as in computing, cooking, teaching and ext.They pay income taxs like anyone else. Furthermone, they actually creat jobs with their purchasing power.

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  2. Anonymous24 May 2009 at 12:34

    Immigration is a problematic matter. However, in my opinion the recent immigration to Britain from new EU entrants had an aggregate positive effect on the economy. There is much evidence in support of the view that they actually do jobs, which are not attractive to the natives. Many of the immigrants are actually pretty good in what they do. Therefore, the quality and quantity of labour increases shifting the long run aggregate supply to the right, leading to an increase in sustainable growth rate. Furthuremore, as they are cheap to hire, immigrants conrtibute to a fall in costs of production shifting the SRAS to the right leading to lower inflation. As mentioned above, they spend money raising AD. One could also argue that immigration leads to an increase in the productivity of the native work force, which now faces cheaper competition.

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