How Much of a Jerk Do You Have to Be to Oppose Immigration?
Brian Doherty | May 24, 2007, 6:53pm
The YouNotSneaky blog does the math. From the lead-in:
Let's put on our annoying-economist hat and consider the question; if you consider a foreign national to be only 1/2 a human being (alright, alright, only 1/2 as "important") as a native citizen, are you justified in opposing immigration? After all, it takes a real jerk to argue that foreign people's welfare should not count at all. Suppose the foreigners are only 1/10th as important? Surely, if natives' welfare counts for ten times as much as that of foreigners, we would be justified in banning immigration since it may adversely affect the wages of the unskilled in US? Well, let's see...
It goes on from there, with some relatively heavy-lifting math for those of us out of academia for a while.
[Link via Marginal Revolution.]
John | May 25, 2007, 11:07am | #
From the WSJ today.
American men in their 30s today are worse off than their fathers' generation, a reversal from just a decade ago, when sons generally were better off than their fathers, a new study finds.
The study, the first in a series on economic mobility undertaken by several prominent think tanks, also says the typical American family's income has lagged far behind productivity growth since 2000, a departure from most of the post-World War II period.
The findings suggest "the up escalator that has historically ensured that each generation would do better than the last may not be working very well," says the study, which is scheduled for release today. The study was written principally by John Morton of the Pew Charitable Trusts, which is leading the series, called the Economic Mobility Project, and Isabel Sawhill of the Brookings Institution. Other participating think tanks are the Heritage Foundation, American Enterprise Institute and the Urban Institute. (See the study.)
In 2004, the median income for a man in his 30s, a good predictor of his lifetime earnings, was $35,010, the study says, 12% less than for men in their 30s in 1974 -- their fathers' generation -- adjusted for inflation. A decade ago, median income for men in their 30s was $32,901, 5% higher than 30 years earlier. Ms. Sawhill said she isn't sure why men's wages have stagnated. "It seems there's been some slowdown in economic growth, it's possible that the movement of women into the labor force has affected male earnings, and it's possible that men are not working as hard as they used to."
The study suggests that absolute mobility -- the rate at which an entire generation's lot improves relative to previous generations -- has declined. But within a particular generation, individuals can still get ahead if relative mobility, the rate at which the rich and poor trade places, remains high. Poor fathers may have rich sons, and vice versa.
MORE
• Full text of the mobility report (PDF)
• Juggle Blog: Better off than your parents?
The report also found that between 1947 and 1974, productivity, or output per hour, and median family income, adjusted for inflation, both roughly doubled. Between 1974 and 2000, productivity rose 56% while income rose 29%. Between 2000 and 2005, productivity rose 16% while median income fell 2%, challenging "the notion that a rising tide will lift all boats," the report says.
Ms. Sawhill said several factors could explain the divergence: a growing share of income going to the highest-paid workers, or to profits; an increased share of labor compensation going toward benefits such as health care; or a decline in the number of wage earners in the typical family.
Write to Greg Ip at greg.ip@wsj.com
Why are people worse off today than they were 30 years ago, despite nearly doubling productivity during that time? The answer is that the influx of labor from overseas has worked to keep wages behind productivity. Immigration is fabulous for the rich. It is terrible for the average person.