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Immigration and the Trillion-Dollar Lottery
Townhall.com ^ | September 9, 2021 | Veronique DeRugy

Posted on 09/09/2021 4:17:13 AM PDT by Kaslin

Exactly 10 years ago, economist Michael Clemens published a paper in the prestigious Journal of Economic Perspectives called "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?" He urged fellow economists to consider a paradigm shift in their research about immigration. Though economists had mostly neglected the global economic losses caused by migration barriers, the existing estimates "should make economists' jaws hit their desks."

As a fellow at a Washington, D.C., anti-poverty think tank called the Center for Global Development, Clemens suspected this research would reveal that by restricting immigration, the amount of wealth we leave on the table globally is in the trillions of dollars. He notes it's essential to seek a better characterization of the gains to labor mobility globally -- gains for the countries to which migrants go and for the countries they leave. He highlighted a few issues economists should explore, including "the magnitude and mechanisms of the effect of workers' location on their productivity, relative to the effect of workers' inherent traits on their productivity." In layperson terms: How much does where you live matter to your productivity?

Thankfully, many economists answered Clemens' call. In fact, it's hard to overstate the importance of this paper and the impact it has had on this field of research.

As George Mason University economist and renowned immigration scholar Bryan Caplan wrote to me, "Before Clemens' seminal paper, even immigration's biggest fans failed to understand the strongest argument for their own position. Namely: Virtually everyone, regardless of skill, is much more productive in the First World than the Third World." And that doesn't just apply to high-skilled immigrants. It also applies to very low-skilled immigrants, who, when they immigrate, can tap into labor markets with efficiently run firms, predictable legal systems and ample capital (think of a tractor instead of a wooden hoe or an electric saw rather than an ax).

In his illustrated book, "Open Borders: The Science and Ethics of Immigration," Caplan asks, "how productive would you be in Haiti?" The answer is not very. Better yet, we now know that immigrants aren't the only beneficiaries of their relocations. Caplan explains: "(Immigrants become) so much more productive, in fact, that open borders turn out to be the world's greatest policy opportunity for humanity. Trapping human talent in poverty isn't just terrible for would-be migrants; it is also terrible for everyone who would have enjoyed consuming all the wealth that would-be migrants could have produced."

Here's one of the ways immigrants benefit all of us: A farmer who stays in his relatively poorer country contributes virtually nothing to the global economy. Yet that changes once he arrives in a country where he produces so much more food that a lot of it can be sold on export markets. The global food supply rises, benefiting all people who eat, including Americans. After all, more supply means lower food prices everywhere.

In addition, more immigration means a deeper market for housing, making home sales easier when you wish to move. More immigration also increases the ease of finding caregivers for children, nurses for aging parents and landscapers for lawns -- all of which improve prospects for others to pursue more lucrative employment. Parents, for example, can work longer and more certain hours, and the American who would otherwise mow lawns can become owner or manager of a lawn-care company.

More immigration also increases the construction of offices, retail space and housing. And yes, while immigration may lower local wages by increasing the supply of workers, immigration also increases the number of consumers for other goods and services, which then increases wages by raising the demand for more jobs. Which of these effects win? That's one of the questions Clemens asked economists to tackle.

So far, the answer is that large-scale immigration hasn't made locals worse off economically precisely for the reasons spelled out above. Growing evidence confirms what sound economic theory predicts: Barriers to immigration make us all worse off.

There's so much more to say about this issue. But I'll conclude by saying that those who worry about the cultural or political risks of welcoming newcomers shouldn't ignore the trillions of dollars of wealth we reject when we reject immigrants. It's natural for immigration skeptics to consider proposals that ensure immigrants earn the right to receive government welfare, but it's not OK to leave enormous wealth untapped because of unwarranted fears.


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: economics; immigration

1 posted on 09/09/2021 4:17:13 AM PDT by Kaslin
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To: Kaslin
Meet your new neighbors.

Ask the Europeans what comes next.


2 posted on 09/09/2021 4:22:33 AM PDT by Travis McGee (EnemiesForeignAndDomestic.com)
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To: Kaslin
What if these immigrants are being pandered by a party that wants them dependant? They not only provide negative productivity but keep a party in power that is dedicated to destroying free markets.

This article treats everyone as equal when cultures are not. How else did the inequality occur in the first place if we are all the same?

3 posted on 09/09/2021 4:39:53 AM PDT by Nateman (If the Left is not screaming , you are doing it wrong.)
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To: Nateman

Does DeRugy factor in the higher costs of crime due to immigration in her analysis? Mohammad Atta was no doubt more “productive” as a terrorist working in the U.S. than he could have been working from Saudi Arabia, availing himself as he did of fancy first-world technology and training and a broken U.S. immigration system. Would take an awful lot of super-productive lawn mowers and nannies to balance out the “negative externalities” he brought to the U.S.


4 posted on 09/09/2021 4:57:31 AM PDT by TimSkalaBim
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To: Nateman

Donald Trump said it first.

“They aren’t sending their best”

The book probably has a chapter saying that one statement using a million words.


5 posted on 09/09/2021 4:57:45 AM PDT by Celerity
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To: Kaslin
From a prior article: "Incompetence, political weakness and fearmongering about foreigners in search of a new home has created a cruel immigration policy. But this structural cruelty pales in comparison to the comments made by some legislators who tout their opposition to welcoming Afghan refugees to our shores after many of these refugees put their lives on the line for two decades by helping American soldiers in that war-torn country."- Veronique de Rugy

As George Mason University economist and renowned immigration scholar Bryan Caplan wrote to me

The air is a bit stuff in 'dem eye-vor-ree towers.

But I'll conclude by saying that those who worry about the cultural or political risks of welcoming newcomers shouldn't ignore the trillions of dollars of wealth we reject when we reject immigrants

I am quite fine with ignoring trillions of dollars of wealth. I'd rather be a rich American than a filthy rich globalist that willing destroys the lives of others.. As for all those Muslims you so much want in America, Veronique de Rugy, they should remain close to Afghanistan so that one day they can return to free Afghanistan. I rather not take the risk or tax dollar expense of them coming to America and being a fiscal and cultural burden along with all the other people immigrating from other shithole countries.

6 posted on 09/09/2021 4:59:30 AM PDT by ConservativeInPA ("Goats are like mushrooms. Because if you shoot a duck, I'm afraid of toasters." - Joe Biden)
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To: Travis McGee

There ya go.


7 posted on 09/09/2021 5:20:26 AM PDT by sauropod (Bidet was no prize before he put the “d” in “dementia.” - Schlichter)
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To: Kaslin

This article is a bunch of codswallop.

The dissolution of the country continues.


8 posted on 09/09/2021 5:21:58 AM PDT by sauropod (Bidet was no prize before he put the “d” in “dementia.” - Schlichter)
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To: Kaslin

The author ignores the elephant in the room.
The wealth that author envisions would be taken from the current American citizens whose employment prospects, salary and quality of life will be stripped from them & distributed to the immigrants but even more so to the Globalist Corporations.
IOW wealth left on the table but not for thee.
Immigration quotas must be administered to be a net good forAmericans & USA. Entry should be based on merit and on the current needs of the American people not the present situation of dumping unassimilated uneducated hordes with no desire to work for their goals across America, for communities to support, for crime to flourish and for disease to spread.


9 posted on 09/09/2021 5:33:29 AM PDT by JayGalt (The dogs bark but the caravan moves on.)
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To: Kaslin
Not one word - that I saw - about how depriving Third-World countries of their "brightest and best" is a detriment to said countries.

Regards,

10 posted on 09/09/2021 5:50:52 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
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To: Kaslin

Right!

I call Bullshit!

Large scale immigration causes a poorer & dirtier society. We already have 350 million in this country half do not work. We don’t need any more third worlders to enhance our economy.

Most use more in government programs than they put in. The only beneficiaries are the large corporations & wealthy who get cheap domestic help. Our wealthy have always imported slaves top do their dirty work & increase their wealth.


11 posted on 09/09/2021 6:12:10 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign! )
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To: Kaslin

In 5 years the Indians will have 90% control of all American computer systems. And mostly all American computer analysts will be greeters at Walmart. The Indians DO NOT like Americans.


12 posted on 09/09/2021 7:04:09 AM PDT by jroehl (And how we burned in the camps later - Aleksandr Solzhenitsyn - The Gulag Archipelago)
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To: Kaslin

The Deplorables want a Comprehensive Immigration Enforcement bill, missing since 1986 ONE TIME amnesty. Since that amnesty was granted already, a second amnesty is off the table. What remains is the enforcement the Democrats have disallowed since then.

The List of Comprehensive Immigration Enforcement, missing since 1986 goes like this -
1) southern barrier;
2) require eVerify to hire;
3) end all chain migration;
4) birthright per Minor v. Happersett (plural parents);
5) end work visas;
6) 10-year moratorium on all new applications for citizenship (40 years to allow workplace automation effects on downsizing population);
7) Set up an illegal aliens’ victim restitution fund.

Enactment of these provisions will motivate illegal aliens to SELF-deport, and remove colonizadors from our welfare rolls.


13 posted on 09/09/2021 8:26:58 AM PDT by RideForever (One of the Control Group of the CoVID genetic experiment)
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