andyt andyt:
That's just wonderful. We need more people because we're such an empty country, and we have all those $8/hr jobs just waiting for them because no Canadian will take them.
Never mind that immigrants cost us 18 billion more in govt spending than they pay in taxes each year. It's well worth it, I say, and at least nobody will call us xenophobic.
I was wondering where you got that 18 billion dollar figure? I don't mean to question the validity of the value, I just want to know what is included and calculated in that figure. The reason I ask is because it doesn't make logical sense to me to simply cast aside the long term benefits of these immigrants for short term ones, and I find it hard to believe that immigrants, as a whole, do not have an aggregate long term benefit for Canadian society. After all, I am willing to bet that a lot of people here are not too far unrelated from immigrants in some form, and a large portion of our current GDP is dependent on the fact that, at some point in time, those immigrants were a bit of a burden on Canadian society before they became productive members of it, as their children, children's children, and so on have.
I'm going to play a bit of Devil's Advocate here a bit, but I do also support the position to follow as well. On the plus side, because about 100 of my 500 posts have been on this topic it's hard not to have some of this stuff memorized!
There is a lag impact between immigrants coming and economical benefits of these immigrants taking effect. This should not be a surprise, as some industries work with long terms into the double digits of years (such as oil companies). For example, let's look at the trade balance. In some cases, this lag time for a rise in exports is five years, and in other cases, as much as 20 (Partridge & Furtan, 2008). Imports are seen to rise immediately (Partridge & Furtan, 2008). While the Canadian taxpayer may have to support immigrants from the beginning, the longer terms show that they do have beneficial impacts on the amount of exports Canada produces and a beneficial impact on the Canadian economy as a whole. This is one of the reasons I want to see where that figure is from, to see how they identify immigrants; 5 years landed immigrants, 10 years landed immigrants, immigrants indefinitely?
Besides, we cannot ignore the potential benefits of immigration either. For example, the long term negative real-per capita GDP impact of aging could be reduced by as much as 30% due to the accommodating effects of immigration (Fougere, 2005). To fully offset the negative impacts of aging, however, we would need to more than double our current rate of immigration (Fougere, 2005). Still, it does show that our current immigration rate successful offsets aging effects on the economy to a substantial degree. Labour market factors and the health of the Canadian economy are two defining characteristics of modern Canadian labour policy which are largely responsible for the change in our immigration patterns over the past few decades (Singh, 2004). Indeed, the drive for a healthy economy is one of the reasons why we now see a lot of people coming to Canada out of Asia now (Singh, 2004). Note that this does not mean they are sweatshop workers -- to have the economic and personal capital to move to Canada through normal means requires a certain level of adequacy in education and employment eligibility.
I also strongly contend the idea that immigrants are only here for the low paying jobs. As I have showed in other threads, the major countries contributing to Canadian immigration are those from other first world nations at the top of the development scales or, typically, skilled and educated workers from the top end of those nations not matching the aforementioned criteria (
CKA Source,
Comprehensive Government Source). It's been shown that workers with previously work experience in (and including non-regulated) technical and hi-tech fields have high levels of employment and their experience is typically accepted here in Canada for jobs comparable to what other Canadians get (Hall & Sadouzai, 2010). Immigrants are not all grouped together in the low-income bracket, just like refugees in Canada make up a relatively smaller portion of immigrants in comparison to those who enter via normal methods each year. Rather, the reason for variances in employment for immigrants is because of important sectoral, regulatory, and institutional differences (Hall & Sadouzai, 2010). For example, there is a wage gap between immigrants in Quebec and immigrants in the rest of Canada, likely due to premiums earned when becoming a citizen of Canada rather than remaining a landed immigrant (Nadeau & Seckin, 2010).
It has also been stated that immigration has no evidence of an effect on Canadian unemployment (Islam, 2007). Unemployment in Canada, however, does cause a reduction in immigration (Islam, 2007). Islam points out a long-run positive relationship among per-capita GDP, immigration rate and real wages as well (2007).
Sure, there are negative impacts in Canadian society. Immigration adds onto an already increasing amount of wage inequality, for example, although this is a short run phenomenon as these immigrants adjust to the labour market (Moore & Pacey, 2003). Immigrant skills have declined over time, although Canada has gained tremendously from the immigrant population over the years (Singh, 2004). The aforementioned wage gap between Quebec and the RoC for immigrants (Nadeau & Seckin, 2010).
A lot of those come with "howevers" or "buts." Even though there are, of course, some negatives, there are positives or corrections occurring within the Canadian economy. I personally conclude that immigration is essentially a positive aspect of the Canadian economy, and that we should work to improve the immigration process rather than reduce it. I think more immigrants is not a bad thing, and hope that any negative trends are targets for future public policy on the part of whichever government is in power. That 18 billion dollar figure and reference to 8 dollar an hour wages just doesn't fit all that well in my book.
Three short notes. The below references do not contain the links, since you can directly see the source anyways (no reason to cite something you can literally look at while reviewing this). I've also limited my use of these papers to what you can read in their abstracts or summaries if you look for the paper name on google. Finally, I will admit that the focus of this was on the positive aspects (devil's advocate), but I do stand by my end conclusion.
References:Fougere, M 2005, 'Ageing and the Economic Benefits of Immigration: An Analysis for Canada',
RISEC: International Review of Economics and Business, 52, 1, pp. 113-143, EconLit with Full Text, EBSCO
host, viewed 13 February 2011.
Hall, P, & Sadouzai, T 2010, 'The Value of 'Experience' and the Labour Market Entry of New Immigrants to Canada',
Canadian Public Policy, 36, 2, pp. 181-198, EconLit with Full Text, EBSCO
host, viewed 13 February 2011.
Islam, A 2007, 'Immigration Unemployment Relationship: The Evidence from Canada',
Australian Economic Papers, 46, 1, pp. 52-66, EconLit with Full Text, EBSCO
host, viewed 14 February 2011.
Moore, E, & Pacey, M 2003, 'Changing Income Inequality and Immigration in Canada, 1980-1995',
Canadian Public Policy, 29, 1, pp. 33-52, EconLit with Full Text, EBSCO
host, viewed 14 February 2011.
Nadeau, S, & Seckin, A 2010, 'The Immigrant Wage Gap in Canada: Quebec and the Rest of Canada',
Canadian Public Policy, 36, 3, pp. 265-285, EconLit with Full Text, EBSCO
host, viewed 13 February 2011.
Partridge, J, & Furtan, H 2008, 'Immigration Wave Effects on Canada's Trade Flows',
Canadian Public Policy, 34, 2, pp. 193-214, EconLit with Full Text, EBSCO
host, viewed 13 February 2011.
Singh, S 2004, 'Immigration into Canada: Some Issues',
Indian Journal of Labour Economics, 47, 2, pp. 349-367, EconLit with Full Text, EBSCO
host, viewed 14 February 2011.