The immigration debate is hot this week in the USA because the Senate Judiciary Committee just approved a sweeping immigration reform bill.
In recent weeks, I've written two articles that communicated the business community's perspective of the immigration debate and I hope to communicate the labor and other perspectives in upcoming articles.
Below is a link to an article I previously posted and a second article that shows the immigration debate is hot outside the USA.
http://www.storeboard.com/blogs/economy/immigration-is-crucial-to-economic-growth-say-experts/152086
Australia’s Economy Will Benefit From Immigration
By Martin Zabell
Australia Prime Minister Julia Gillard’s policy of a sizeable immigration program that focuses on skilled immigrants will boost economic growth, according to an analysis in the Property Observer newspaper as well as a 2010 position paper by the Ethnic Communities’ Council of Victoria.
Gillard opposed a “big Australia” during her 2010 campaign for prime minister, but immigration has increased from about 176,000 per year to 228,000 from Oct. 1, 2011, to Sept. 30, 2012, The Australian reported on April 4, citing a report by the Australian Bureau of Statistics.
Sizeable immigration growth is controversial in Australia because opponents believe that a larger population has a negative impact on the nation’s environment as well as its ability to provide education and health services, housing, roads and public transportation for its citizens, according to the Ethnic Communities’ Council of Victoria’s “Australian Population Growth And Immigration Policy Paper.
However, the paper concludes that immigrants have “contributed enormously” to Australia’s economic growth and prosperity and will continue do so, particularly if they are skilled workers. Skilled workers pay taxes that allow a nation to improve its infrastructure, schools and other facilities and also “create an immediate demand for services,” writes Ed Chan in the Property Observer. This demand boosts economic growth by increasing sales of cars, homes, and other goods and services.
In addition, a major factor in a nation’s economic growth is the average age of its population. Chan reports that older populations spend less money than younger populations. Lower spending slows economic growth so much that it causes unemployment to rise and tax revenues to fall.
Relaxing immigration rules generally reduces the age of a population because looking for work opportunities is a primary reason that people immigrate. Chan points out that Japan has had a very restrictive immigration policy for a long time. Not coincidentally, Japan has had no economic growth since 1991, according to Chan.
Australia’s average age is 35. Europe, which has lower economic growth rates than Australia, has an average age of 45, according to Chan. Natural births can make a nation younger and boost economic growth, but Chan points out that welcoming immigrants is a faster way to boost economic growth because newborns won’t be able to be productive workers for about 23 years.
Australia also needs younger immigrants because its birth rate isn’t high enough to replace retiring workers and the nation, although comparatively young, is rapidly aging, according to the Ethnic Communities’ Council of Victoria. The council recommends that Australia invest money in helping immigrants improve their job skills so they will be more productive.
Currently, Australia has 23 million people, according to the Australian Bureau of Statistics. Gillard estimates Australia will have more than 40 million people by 2050.
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