IMMIGRATION AND PRODUCTIVITY
[Note from JW: Dr. Rahn here presents an economic discussion of immigration - after all, he is an economist. It is not a discussion of the national security threat of immigration, specifically that of illegal immigration from Mexico. A lively discussion of Dr. Rahn's arguments is expected on the TTP Forum!]
How many new immigrants should the United States allow each year? How many guest workers? These are not easy questions, which is why there is as much fierce debate within the two parties as between them.
The two main reasons given for restricting current immigration are the myths that immigrants take away American jobs and that immigrants are more likely to go on welfare, thus putting an additional burden on the taxpayers.
Rather than taking away American jobs, good economists understand that immigrants who work create wealth in America, which in turn creates more and higher paying jobs for everyone.
To explain the economics of this adequately would take more space than this entire commentary, but the truth of the assertion can be seen in the fact that high-wage countries with many immigrants such as Switzerland, Australia and Canada tend to have much higher labor force participation rates and lower unemployment rates than low-wage countries.
