Friday, October 3, 2008

Costs of immigration exceed benefits

Common sense from Canada:

The truth about immigration is that costs exceed benefits
James Bissett, Special to the Sun
Published: Monday, September 29, 2008

We sometimes complain about politicians who don't do what they promise to do after they get elected. Ironically, it is sometimes much better for the country when some of these promises are broken.

Let's hope, for example, that the promises made by our political leaders to raise immigration levels and provide more money for immigrant organizations are not kept. Either our political leaders do not know that Canada is facing an immigration crisis or they care more about gaining a few more so-called "ethnic voters" than they do about telling the truth about immigration.

Canada is taking far too many immigrants and the leaders of all the parties are promising to take even more. There are already close to a million immigrants waiting in the backlog to come here. They have all met the requirements and by law must be admitted. There is also a backlog of 62,000 asylum seekers before the refugee board and even if these are not found to be genuine refugees most will be allowed to stay. In addition, there are between 150,000 and 200,000 temporary workers now in the country and here again it is unlikely many of them will ever go home.

Despite these extraordinary numbers, the Harper government wants to raise the immigration intake next year to 265,000. The Liberals and the New Democrats have said they want even more, as much as one per cent of our population, or 333,000 each year.

These are enormous numbers and even in the best of times would place a serious burden on the economy and on the already strained infrastructure of the three major urban centres where most of them would end up. Let's face the facts -- when there is a downturn in the world economy and dire predictions of serious recession or worse this is not the time to be bringing thousands of newcomers to Canada. In July of this year, Ontario alone lost 55,000 jobs. So what is the rationale for more immigration? The fact is there is no valid rationale. There is only one reason why our political parties push for high immigration intake and that is they see every new immigrant as a potential vote for their party. This is not only irresponsible it borders on culpable negligence.

There are few economists today who argue that immigration helps the economy in any significant way. Studies in Canada since the mid-1980s have pointed out that immigration has little impact on the economic welfare of the receiving country and similar studies in the United States and Britain have reached the same conclusion. Comprehensive studies by George Borjas, the world's most renowned immigration economist at Harvard University have shown that immigration's only significant impact is to reduce the wages of native workers.

Our politicians justify their desire for more immigrants by raising the spectre of an aging population and telling us immigration is the only answer to this dilemma, and yet there is not a shred of truth to this argument. Immigration does not provide the answer to population aging and there is a multiplicity of studies done in Canada and elsewhere that proves this. Moreover, there is no evidence that a larger labour force necessarily leads to economic progress. Many countries whose labour force is shrinking are still enjoying economic buoyancy. Finland, Switzerland and Japan are only a few examples of countries that do not rely on massive immigration to succeed. Productivity is the answer to economic success not a larger population.

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