3 ms·
GDP = C + G + I + NX C = Consumption G = Government spending I = Investment NX = Net exports Which of these exactly is immigration going to boost and
by User23 3y ago
GDP = C + G + I + NX
C = Consumption
G = Government spending
I = Investment
NX = Net exports
Which of these exactly is immigration going to boost and how will it sum to $7 trillion? My money is overwhelmingly on G for mass low skill immigration. It’s easy to see how it will increase strain on the public purse.
Needless to say GDP is not necessarily the right metric to optimize for. It’s kind of like BMI in that way. Useful when used properly, not so much when other factors are ignored.
Edit: I’m not interested in rhetoric. I want to see how the numbers add up. Government spending is the likely candidate.
- hiddencost 3y agoWrong. It'll increase productivity, given the acute labor shortage were facing. Immigration has always been a net positive.
- floydnoel 3y agowell, there's no such thing as a true shortage without price controls. I am quite surprised that anyone believes there is a labor shortage. are you a mega-corp CEO perhaps?
- broken_clock 3y agoConsumption because they're people and spend on things. Investment because immigrants tend to make a lot of money and (some) culturally save and invest a lot. Net exports because immigrants work and produce things.
- 2OEH8eoCRo0 3y agoWhy wouldn't more bodies increase every one of those variables? More bodies consume more, produce more, the govt spends more, and we have more things to export.
- dandesim 3y agoConsumption - They are people who will buy things. They will also add labor to the market, making goods less expensive for others to purchase. Government Spending - Investment in industries like energy, infrastructure, and chip manufacturing all needs labor. With a ~3% unemployment rate that's going to be hard to come by. Investment - Immigrants will have money to save and invest. Many small businesses are owned by immigrant families. Net exports - Lower skilled factory labor is in demand and hard to come by. Can't make stuff in America if there is no one to make it.