Migration

Feb 24, 2007 14:14


It is disappointing that labour migration is so misunderstood and maligned in Western societies, especially Australia. The globalisation of goods has given us more things to choose from, cheaper prices and higher real incomes. Labour migration, when administered sensibly, can achieve further gains in these areas. Migrants add to overall demand as well as to labour supply, and by allowing our industries to operate more efficiently and flexibly, they help to increase productivity. The effect is a better quality of life for them, and higher average incomes and growth prospects for the rest of us.

It's disappointing the federal government intervenes so heavily in the migration market, cherry-picking industries and skills that it thinks the country needs. These would be much better worked out by the market directly, in a system where the government sets the overall number of migrants and some basic conditions (such as security clearance) but industries and companies can attract the people they need for the jobs they need doing. No more PhDs in cleaning jobs.

Economic efficiency in the labour market is not an inherently bad thing. By dropping our protectionist prejudices we can benefit ourselves. Indeed, by allowing in people from many places and backgrounds, we would add to the richness of our social diversity as well.

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