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January 05, 2007

Comments

AntiCitizenOne

Immigration can reduce real income by increasing house prices/rent costs.

Courtney Hamilton

Interesting - Migrationwatch calculated that migrants actually 'add 4 pence a week' to everyone in the UK - a gain, albeit a rather marginal one, but a gain all round. A pareto improvement, no?

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/01/03/nimm03.xml

Phil

"The more integrated immigrants become, the more like natives they become, and so the more they depress wages.
...
So, there's a downside to integration."

Call me obsessive, but isn't that actually an upside in your terms? When you cite reducing inflation as a benefit of immigration, isn't that another way of talking about immigration depressing wages?

Planeshift

"Immigration can reduce real income by increasing house prices/rent costs."

Unlikely. In the case of wealthy Russian Oligarchs in london yes, in the case of poor refugees who end up living 5 to a room (yes I'm stereotyping) then no as they won't be buying houses, and can't afford to rent expensive properties.

It is an interesting issue you raise though, because people claiming that we live in low inflation times don't appear to have factored in increased housing costs. Increases of 200% in the price of bread, apples etc won't effect me as much as even a 10% rise in my rent. This is one reason why we should be cautious about national economic statistics.

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