Quote:
Originally Posted by ASAP
Whether we look at this macroeconomically or at an individual level...
What you mention above is one of the reasons, the UK decided to leave, it was being overcrowded by a large amount of migrants and all of their lower paying jobs were being completely taken over... to the point, where if you want from a certain nation, you may not get that job, thats not a joke, that was reality in many cases... but now the question is, what happens to those workers at home that can't do anything else or the home country where a massive % of the younger work force just left? There are no equilibriums in place for this situation... sooner or later this will cause a problem. I am a 100% capitalist, free market thinker, but with the Union, I think they over did it a bit... If France and Germany suddenly left the EU... would there really be a EU? No... every other nation, GDP wise is irrelevant completely...
|
But again, you just stated the benefits of open labor. Will British citizens want to scrub toilets for £7.20/hour? Probably not. So what's their rate? £15? There's going to be price increase almost across the board for effect workforce, but skilled and unskilled. But sure at £15, not every labor job will be filled...so it's not like everyone will simply step in and fill those jobs...
So on net, more jobs will be lost, the immigrants' jobs, and the price of services will increase. Consumption prices going up is great to a certain extent, but only if wage inflation also increases. What if the consumers of services decide to just buy less after price increases? That's no economic growth.