OH… YEAH… BY-THE-WAY, IMMIGRANTS INCREASE WEALTH

Then, we have the seldom mentioned, often ignored real facts about immigration.

 

Immigrants have all sets of skills and educational levels

It is true that their average educational level may be lower than that of the country they are immigrating into… but… their higher educational levels are usually higher… and…they are much more strongly motivated to work hard and succeed… and…they provide a wealth of skills that do not exist in the host country… which… contributes to increase everybody’s wealth.

 

All classes of immigrants are required for maximum economic benefit

It is plain stupid to try to select the “appropriate” type of immigrant. The one with the “right” skills and the “correct” educational level, with the “appropriate” attitude and the “ideal” family composition. If any of these factors would determine economic wealth, governments would have put incentives in place to achieve this goal for their own citizens many, many decades ago. No politician thrives in poverty and desperation.

What makes an economy tick it the “unexpected” factor; the “drive” of one person to succeed; the inspiration of another person and the plain stamina of yet a different one. None of these characteristics can be typified or identified. There is no “right” blend of skills for immigration. The more average the blend the better.

 

Immigrants improve everybody’s standards of living

Because immigration is a self-selection process, this process tends to select only the most motivated and most likely to succeed people. In other words, what immigration is giving you is raw talent and stamina. Is then a wonder that they increase everybody’s wealth and through it, their standards of living?

 

Immigrants are more entrepreneurial than existing citizens

Why would this be a surprise? These people had to have the self-confidence and stamina to pass all the idiotic government filters in their home country as well as in the host country. Plus all the cultural shock. Plus all the financial shock. Of course! They will be go-getters!

 

Immigrants are required to maintain retirement schemes

One way or another, every country has some sort of public retirement scheme. Hit the “retirement age” and the government starts paying you “benefits”. There is only one tiny problem. Most such programs are hopelessly bankrupt. The process is simple to understand:

a)    Politicians make impossible promises to get elected

b)    Politicians get elected

c)    Politicians set up Ponzi schemes whereby current workers pay retirement expenditures.

d)    Current workers diminish as people have less sons and daughters.

e)    Less workers imply less payments into retirement funds and more retired people entitled to those funds.

f)     Retirement fund go broke

 

This is a process that is happening all over the world. Solution? Artificial citizens: let young workers in (immigrants) so that they may work and contribute to retirement funds. Voila! Problem solved.

 

MASS MIGRATIONS

 

Migrations

In this section we are going to talk about mass migrations, not slow, trickle or ongoing migrations. We are only interested in gigantic waves of people changing countries. We are only interested in them because they are what governments keep warning us from. No government in their right mind wishing to retain a slim appearance of propriety would limit small migrations and hence they don’t. They just “regulate” them. However, all governments claim the same: mass migrations are a direct national security threat because they will destroy our social systems and our economy. Fair enough, let’s take a look.

 

Fear, uncertainty and doubt

Every single government on earth has immigration policies. This is, rules and regulations dictating who can enter its territory and in which circumstances. All countries do it: Democracies and Tyrannies, Rich and Poor, First world and Third world, African and Asian. They all do it.

They all use the same tired excuses, the same unspecific terror. The immigration will get you! Run! … but wait. You don’t have to do that. The government will watch the borders for you. You see… we are working hard for you.

We cannot “afford” to have open borders… if we do, who knows what will happen!!!

Well.. nothing would. Actually, nothing bad, all good as we have shown before.

Consider these simple numbers. In 2000 the world population was about 6100 millions. The number of people living outside their countries was about 150 million or 2.5%. Where exactly is the threat???

How about this? The EU sustains a “horrific” immigration pressure of about 1 million people per year or 0.2% of their entire population, or 2% per decade! Pretty much the entire population growth in EU is due to immigration. The horror!!!

 

Mass migrations that never happened

If what politicians have been telling us would be true, this is, that if they open their borders local population would be overrun, then we should have seen this effect decades ago. Yet, nothing. Not a blip in the radar.

Consider this. In Latin America in the latest few decades there were two countries that were doing just fine economically: Chile and Brazil. Their immigration policies were quite open, without being completely open. Contrasting those countries, there were economic basket cases such as Argentina, Peru and Paraguay. Yet, even at the points in history when economic difference between countries were at their maximum, we did not see mass migrations. Strange, isn’t it?

How about this. There is a large number of Italians and Spaniards (i.e. passport-carrying Italian and Spanish citizens) in Argentina. They could have migrated into Spain or Italy any time they wished to do so. Argentina wasn’t prohibiting exit and Italy and Spain couldn’t deny entry. Yet… nothing happened. Zero. Zip. Nada. No mass migrations.

Consider this. When EU finally abolished their mutual border controls, only the richest countries (those who signed before 2004) allowed mutual migration of workers. This is, if you were a citizen of either country, you could work in either country without further due. Result? Nothing. Zero. Zip. Nada. No mass migrations.

Then, other countries entered EU post 2004. Countries from the former East Bloc. For example: Czech Republic, Estonia, Latvia, Lithuania, Slovenia, Slovakia, Poland, Hungary. Those countries clearly had lower standards of living than the pre-2004 members. In the beginning, only Sweden, UK and Ireland allowed unrestricted worker migration. Result? Nothing. Zero. Zip. Nada. No mass migrations.

After 7 years, all restrictions to migrate to so-called “richer” EU countries were lifted. Result? Nothing. Zero. Zip. Nada. No mass migrations.

Hummmm…. Strange, isn’t it?

This is a very old story that repeats itself time and time again. Every time there is a massive opportunity for people to migrate into other, richer and more advanced countries… they decline!

Let us be clear. Economic conditions do not cause mass migrations.

 

Mass migrations that did happen

If you take a look at mass migrations that happened in the last 100 or so years, you will notice some strange coincidences.

Why would a person migrate nowadays? Because this person is afraid for his/her life or the life of their families.

Where does this fear comes from? There are only two possible sources:

• Famine (caused by disease or war)
• Disease
• War

However, diseases nowadays spread so fast that it is mostly pointless to try to outrun them. People understand this. Governments understand this. Everybody understands this. So, this fear has ceased to have any real effect in inducing mass migrations.

What about famine? It is conceivable that disease-induced famine may occur. However, considering the speed current diseases travel, it is extremely unlikely that people will choose to migrate because of famine since by the time famine becomes a factor, every country in the world would be in the same condition. Diseases travel much, much faster than famine. There really is no point in emigrating due to disease-caused famine.

What about war-induced famine? It simply a side-effect of war, and therefore we consider it part of the war analysis.

Therefore, we are only left with war. War can be “hot” or “warm”. Hot wars are “traditional” wars. Armies of some sort engaging in combat with population in between. Or population being targeted for “psychological” purposes or “ethnic” purposes. Warm war is state-sponsored terrorism, such as what the USSR did in the East or what the infamous military Dictators or Juntas did in the West. It’s more of a slow-motion, personal kind of war, but the risk of losing one’s life is the same.

However, when we look back at wars, we need to ask ourselves? Who has the economic means to wage war? Answer? Governments. It is plainly idiotic to believe that a Neighbor’s Association or Automobile Club or a modern Church has the economic means to wage wars. Only governments can spend money to the gigantic scale that is required for wars.

So, we return to the same solution we presented before: remove governments and wars go away. Remove wars and mass migrations go away. In other word, mass migrations are caused by governments and then they black mail us into paying to prevent them! Nice racket; organize crime would be proud!

 

Impacts of mass migrations

In the few occasions when these migrations did happen, did they have such a devastating effect as advertised? No. Not by a long shot. This is not to say they did not have a short term effect. They indeed had. However, over time (typically a few years), all those negative effects tended to disappear if the countries accepting migrations were reasonable. If these countries extended roughly the same rights to immigrants, these in term paid their dues. Check the news. There are no news of countries complaining of massive social and economic problems related to mass migrations unless those countries created them in the first place. If countries behaved as idiots and forced immigrants into “reservations” of some kind, then yes, they would still have problems decades after migrations. However, for countries that allowed immigrants to settle at their own pace and in locations of their choosing, somehow, mysteriously, we hear no complaints!

One such recent positive mass migration was the re-unification of East and West Germany. For any intent and purpose, West Germany was invaded by East Germans whose standards of living were pathetically lower. West Germany decided to remediate the situation and it spend large amounts of money to palliate this “migration” and bring everybody to the same –albeit lower- standards. Result? A stronger and unified Germany. Sure, there still are problems here and there, but by comparison there are no earth-shattering issues.

Another such mass migration happened between 1993 and 2003 when approximately 140,000 Palestinians were allowed to become legal residents in Israel and nothing happened. These Palestinians did not start a revolution, they joined Arab political parties within Israel.

 

Conclusion

Mass migrations are caused by governments, not natural economic conditions. Mass migration are unusual occurrences and can be handled well assuming governments do not act as idiots. Mass migrations can temporarily overwhelm a country in economic and social-services areas. However, if countries are not gigantically stupid, these immigrants are not only absorbed but they become integral parts of the economic system, oftentimes contributing disproportionally to the wellbeing of all citizens.

Note: please see the Glossary if you are unfamiliar with certain words.

Continue to Immigration policies are the ultimate monopoly - Part 3