Economists advocate the value of migrants
In response to Tony Abbott’s recent comments that immigration should be scaled back to ease house prices, economists for The Australian Financial Review argued that immigrants play an important role in boosting the economy and should be welcomed.
The economic reasons why immigrants should be welcomed
– Sinclair Davidson, Economist for The Australian Financial Review, explains that international trade leads to higher standards of living and greater prosperity and that this is inextricably linked to immigration. He writes, ‘we are better off when goods and services cross borders and when people cross borders too’, saying international trade and immigration are mutually exclusive and complimentary. Restricting immigration could negatively impact international trade and its benefits to the economy.
– Immigrants increase the size of the market and the demand for Australian goods and services. And in Australia’s case, they also increase the supply of the Australian goods and services since skilled migrants make up a large portion of Australia’s migration program. As migrants become employed, they begin paying taxes and contributing to Australian living standards and the more people who live and work in a country, the faster Australia’s gross domestic product rises.
– Sinclair Davidson also argues there are alternative solutions to the Australian house pricing problem that should be explored which do not have to involve cutting immigration. He argues the focus should be on lowering taxation rather than restricting immigration.
For more posts like these, visit our blog. Immigracious provides professional migration advice to people seeking to migrate to Australia. To speak to a migration agent about your visa options, contact Immigracious on 08 6263 4406.
Source:
The Australian Financial Review
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