Another leaked document on the "immigration crisis".
The arrival of hundreds of thousands from abroad is already forcing
down wages for low-paid workers with “serious implications” for social
discord, the report insists. A “step change” in the level of
immigration when Romania and Bulgaria join the EU next year could make
things worse, it says.
The document, by the junior Home Officer minister Joan Ryan and entitled Migration From Eastern Europe: Impact on Public Services and Community Cohesion,
reveals that every government department has been ordered to draw up
contingency plans to deal with the extra pressure on schools, housing
and health.
The report says that schools will be under pressure, with thousands of children arriving here unable to speak English.
It insists that hospitals will struggle to cope with Eastern
European patients who “block” hospital beds because they are ineligible
for social care and benefits if they leave.
Two things. Yes, immigration of low skilled workers should indeed place downward pressure upon wages for the low skilled. That very same low skilled labour should also be consuming products and services made with said low skilled labour, thus raising the demand for it and its price. Research in the US (where immigration is comparable in size to the population level) seems to show a net effect on low skilled labour of between nothing and minus 8% in the wage level.
Which would seem to argue against such immigration. Except that when we calculate the pros and cons we need to include one more thing. The effect upon the immigrants themselves. This is clearly massively positive making the whole exercise a net positive gain in wealth, utility and dare I say it, human happiness.
One other point. Open immigration, to go along with the free movement of goods, capital and services is one of the cornerstones of the European Union. It’s about the only good thing I have to say for the beast. So if you want to stop this you do have to argue that we should leave the EU (which I do as well, but for other reasons). But the point about these immigrants not gaining access to the welfare state: at least somebody in Government has read a little Milton Friedman here. You simply cannot have open immigration and also the Welfare State. You cannot have both. Which is the reason those immigrants are denied access to the welfare system.
Update: Jackie Ashley also manages to miss the point about the benefits to the immigrants.
Leave a Reply