Immigration's effect on wages/standard of living

[WilliamM]

H1B visas and immigration generally have been trending on twitter lately with debate on whether more workers means lower wages.  Those supporting immigration argue that new workers consume as well as produce therefore wages do not decline and all are better off - the rising tide lifts all boats argument that has been popular amongst many on the left and right (Clinton, Bush, Obama).  More people = more GDP = more prosperity.

Not too long ago, I saw this documentary on the black death for the third or fourth time

https://www.youtube.com/watch?v=XgB9qPz7Mz8&t=4684s

I imagine many of you have seen it - it is the same one they've been showing for the past 20 years.  Beginning at 1:15:35 or so it gets into the social consequences of the aftermath of the plague, including that wages for workers rose as well their overall standard of living - the reverse being true for the rich/nobility.  Although not discussed in the documentary, this seems to have culminated in the great bullion famine of the 15th century (higher wages paid which were then spent on luxury goods resulting in a trade deficit with Asia).  

There are other examples I could cite as well - pre independence American colonies which had restricted immigration and which on the eve of revolution Adam Smith claimed that no where else in the world did the common laboring man have it so good; as well as the more recent example of post WW2 America which many feel was the heyday of unions and which of course featured severely restricted immigration. 

Does this mean workers are better off with less immigration? 

[Joe Leote]

This is a two page paper discussing the impact of immigration policies on GDP per Capita in the UK:

cp651.pdf

Most economists and public officials regard the increase of GDP per Capita to be a net benefit in the economy. But people have other concerns such as the distribution of wealth, the labor share of income, etc. I think one needs to make an argument for the costs and benefits of immigration on a case by case basis. Elon Musk is arguing that the United States should continue to buy the best brains from anywhere and everywhere in the world. Other MAGA factions are arguing that this reduces job opportunities, wages, and standards of living for people who already live in the United States. Most economic arguments reduce to political controversy when one scrutinizes the underlying cost/benefit assumptions of rival models.

Joe

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[Jean Erick]

     Sorry I haven't had time to respond to your interesting posts.

And, I don't know if this post will get to you.

My position is entering the discussion between the outright creation of money,

as when the country started and the current, indirect way of buying back debt.

Debtclock.org to "about" to the bottom for a click gives  a six page history of banking.

Hap new year.

James

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From: understan...@googlegroups.com <understan...@googlegroups.com> on behalf of Joe Leote <joel...@gmail.com>
Sent: Sunday, January 12, 2025 3:20 PM
To: understan...@googlegroups.com <understan...@googlegroups.com>
Subject: Re: Immigration's effect on wages/standard of living

 

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