3 ms·
It’s funny you mention that NZ expats are ending up in Australia. You would think this article would suggest they have a problem with brain drain in NZ and shou
by nemo44x 3y ago
It’s funny you mention that NZ expats are ending up in Australia. You would think this article would suggest they have a problem with brain drain in NZ and should solve it by local companies raising pay to keep talent at home.
But alas, the solution to brain drain is to import labor from somewhere with lower standards, accelerating the brain drain if anything as it suppresses local incomes.
To your last note - immigrants increase supply which is fine when measured, as it is in places like Australia with brutally restrictive immigration policy and remoteness that makes refugees unlikely. But as supply grows then demand shrinks and if you’re importing supply at the same rate as demand then wages are flat and if faster then wages drop.
Immigrants can increase the wealth of all yes, but they can also decrease the wealth of most at the benefit of the few when run rampant. But again, Australia is incredibly restrictive with immigration (they literally put many people on an island pending review) so it’s not currently what the CEO in this article is saying. He’s saying more and faster.
- astrange 3y ago> But as supply grows then demand shrinks and if you’re importing supply at the same rate as demand then wages are flat and if faster then wages drop. No, this is the lump of labor fallacy. People /are/ demand and you can't treat them like commodities. What matters are if immigrants have complimentary skills to natives, which they generally do. > Australia is incredibly restrictive with immigration 1/3 of Australia's population are immigrants! They can be restrictive relative to their starting population and amount of land sure, but in absolute terms that's still a lot.
- nemo44x 3y ago> No, this is the lump of labor fallacy It’s literally the first rule of economics. Don’t midwit this…