Wednesday, March 6, 2013

European Migration

As the world moves increasingly towards globalization, human migration can be seen as a right. Britain's government has been forced to deny allegations that they have had a plan to use propaganda in Romania and Bulgaria to discourage them from coming to Britain. They have also moved to implement "entitlement cards" that would be required for all citizens. These cards would be issued to all citizens that would allow them the benefits and services of the government. Cards like these are just another way for countries to discriminate against migrants. This is curious economically, because immigration has its benefits. Britain offers some of the finest universities in the world, and many of the brightest minds are foreigners. Many of these students may stay in the country, and an educated population stimulates the economy. This article says net migration is at its lowest since 1999 in the UK. This is seen as a success by many in Britain, and it boils down to perceived abuse of the their benefit system.

They don't have one of the most generous benefits system in Europe, yet many believe that migrant workers would be a drain to that system. All evidence points otherwise, as migrants show to be a net gain to the system, as they are much less likely to tax credits or live in social housing. It seems from a government standpoint that perceived racism is bad for their image, and makes little sense economically.

Money seems to be the main concern for the UK, as they continue to recover from the economic downturn. Their GDP growth was only .2% for all of 2012, but they have a historic low for their interest rates. Meaning they are leading an expansionary monetary policy in the attempt to lead themselves to economic success. This very much discourages foreign investment. Britain is discouraging migration, while hoping to spur domestic lending. Meanwhile their net migration is falling. It will be interesting to see if their current policies and attitudes lend themselves to future success.

3 comments:

  1. Funny... the British government says "Entitlement Cards". I see they are very good at marketing their "discrimination cards". On the other hand, trying to eliminate waste fraud and abuse is always a good idea, tricky to implement however. Sounds like they have the right idea on a growth oriented interest rate policy however. Not so sure about he immigration issue. Checkout Muslim demographics for some interesting info on immigration and the changing landscape...

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  2. I can see why Britain may be concerned about immigrants taking advantage of their welfare system. Maybe a better way to confront the issue would be through a guest worker program or faster and simpler paths towards citizenship. And while there are surely issues revolving around discrimination and racism, I think that more people are probably concerned with people taking advantage of a welfare system that they are not paying into.

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  3. It is interesting that the UK actually has led propaganda in Romania and Bulgaria. In the past I've heard about the terrible racism towards the growing Muslim population in the UK; semi-recently their was turmoil in the UK with regards to full Hijab being worn anywhere in public, and specifically being banned through airport security. Similarly, I've heard push-back from the UK regarding a growing Indian population

    I find it interesting that I'm now hearing about Romania and Bulgaria, as it seems that the UK's possible xenophobia doesn't discriminate by country of origin. Or do they? Does the UK feel the same way about migrants that are from more well-to-do nations, or from the U.S.?

    Though the U.S. has a certain amount of xenophobia toward every nation, I believe, American attitudes are much more hostile towards migrants from Mexico, or, with decent that appears to be Mexican. Like the UK, the U.S. also has stated that migrants are a vital part of the U.S. economy, there is still descent toward immigrants.

    This leads me to ask, if the economy is not at risk, what is? If the benefits packages are not being jeopardized what is? Are their quantifiable facts that suggest any negative externalities from Migrants to the U.k> If so, what are they?

    If not, what is the U.K. (and the U.S.!) really afraid of?

    When your government is directly receiving criticism under the "race" category, I believe it is time to start evaluating some of the questions posed above.

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