Migrants pay far more in tax than they claim in benefits, with a net contribution of £7bn a year. An OBR study found that with zero net migration, public sector debt would rise to 145 per cent of GDP by 2062-63, while with high net migration it would fall to 73 per cent.
In 2013-14, EEA nationals paid £12.1 billion more Income Tax and National Insurance than they took out in tax credits and Child Benefit.
Given that EU immigrants are making net contributions, there is no reason to think that they should crowd out public services. Their extra fiscal contributions could be used to increase spending on local health and education for the UK-born. In other words, reducing EU immigration could generate the need for continued austerity. This would magnify the need for cutbacks caused by the slower growth ... See More
Using the NBER TAXSIM program, we estimate that refugees pay $21,000 more in taxes than they receive in benefits over their first 20 years in the U.S.
A Home Office research study found that, in 1999/2000, first generation migrants in the UK contributed £31.2 billion in taxes and consumed £28.8 billion in benefits and public services – a net fiscal contribution of £2.5 billion.
George Borjas, EconomistThe presence of all immigrant workers (legal and illegal) in the labor market makes the U.S. economy (GDP) an estimated 11 percent larger ($1.6 trillion) each year.
As for the unauthorized immigrants, if they had not achieved legal status by retirement, they would not be eligible to collect Social Security or Medicare benefits even if they had paid into these programs through payroll taxes. In other words, Social Security and Medicare costs related to the immigrant labor force are cost neutral to the host country’s society, and Social Security and Medicare co... See More
Lord Green of Deddington, Founding chairman of MigrationWatch UKEU migration, taken as a whole, is not making the positive fiscal contribution that has so often been claimed.
Centre for American Progress, Progressive public policy research and advocacy organizationMainstream economists have thoroughly debunked this general stereotype of immigrants as takers, finding that immigrants are a net positive for the economy and pay more into the system than they take out. In fact, immigrants’ contributions have also played a key role in prolonging the solvency of the Social Security Trust Fund. And the truth is that the cost-benefit analyses that immigration restri... See More
Immigrants contributed $182.4 billion more to the Medicare Hospital Insurance Trust Fund from 1996 to 2011 than they received in benefits.
Undocumented immigrants make considerable tax contributions. Like other immigrants and U.S. citizens they purchase goods and services, work, and live across the country. Proposals to remove immigrants ignore their many contributions. In a time when most states are facing revenue shortages, the potential budgetary impacts of mass deportation merits careful consideration. States could lose an estima... See More
This report shows that immigration since 2001 has contributed to the public finances as well as to the economy. However the impact of different kinds of immigration varies and the system needs to be fair - so we need stronger border controls to tackle illegal immigration and stronger action against employers who use immigration to undercut local wages and jobs, but we should welcome international ... See More
Most recent evidence for the UK is supportive of the view that net inward migration has had a positive fiscal impact.
Department of Home Affairs (Australia), Australian Government interior ministryLooking more broadly across both migrant incomes and expenses, migrants are estimated to have a positive fiscal impact since they are predominantly of working age when they arrive. This means that they arrive in Australia at a time in their lives when their taxable income is usually highest and usage of government services such as health, education and aged care is usually lowest.
Smoot and Hawley ginned up The Tariff Act of 1930 to get America back to work after the Stock Market Crash of '29. Instead, it destroyed trade so effectively that by 1932, American exports to Europe were just a third of what they had been in 1929. World trade fell two-thirds as other nations retaliated. Jobs evaporated.
As it is, the grotesque distortions of the global market mean that for every dollar the West dispatches to Africa in the form of aid, two dollars are clawed back through subsidies and tariff barriers: a monumental rip-off by the rich as they instruct the poor to accept 'free' trade or else.
John Pugsley, American political and economics commentatorAny time you read that your government is erecting tariff barriers, supporting threatened industries with subsidies, or interfering in any way with free trade between individuals or nations, you must realize that your standard of living is being lowered as a result.
Nicholas Bloom, Professor of economicsMany people who have lost out in the last few decades voted for Trump. Trump will have a difficult time turning them into winners. The jobs of these people are not at risk because of Chinese or Mexican workers, but because of robots and computers. And new trade barriers and higher tariffs are not going to change that.
Paul Krugman, Economist (nobel laureate) and NY Times columnistTrump’s tariffs are badly designed even from the point of view of someone who shares his crude mercantilist view of trade. In fact, the structure of his tariffs so far is designed to inflict maximum damage on the U.S. economy, for minimal gain.
Michael Pettis, Professor of financePut differently, surpluses don’t arise because surplus countries can produce goods more productively or efficiently. They arise from the need to export domestic savings caused by the low household income share of GDP. Because surplus countries direct their excess savings mainly to the US, the only economy deep, flexible and open enough to absorb them, it is the US that must inevitably run capital ... See More
China is slapping additional import tariffs of 25 percent on $16 billion worth of U.S. goods ranging from oil and steel products to autos and medical equipment, the commerce ministry said, as the world’s two largest economies escalate their trade dispute. “This is a very unreasonable practice,” the commerce ministry said on its website http://www.mofcom.gov.cn, responding to the United States’ ... See More
James Lucier, Managing Director at Capital AlphaIt's a disruptive, external shock to the global trading system… (But) I actually think that this [Trump's tariffs on aluminum and steel] will have positive effects in the long run. It makes people in the United States who have not stood up to support free trade much more anxious to do so now that they see the possible consequences of the benefits of free trade being taken away.
Joseph Stiglitz, Nobel laureate economist based at Columbia UniversityWith the election of Trump, America's soft power has taken a big hit. The United States has moved from a position of leadership in the creation of a rules-based international system to a position of leadership in its destruction and the creation of a regime of global protectionism. The damage will be long-lasting.
Manmohan Singh, Former prime minister of IndiaProtectionism is a very real danger. It is understandable that in times of a severe downturn protectionist pressures mount but the lessons of history are clear. If we give in to protectionist pressures, we will only send the world into a downward spiral.
Charles Dallara, American economistThreats of trade protectionism, plus unilateral actions on the exchange-rate front, such as the heavy interventions of China, Japan, and Switzerland in the currency markets - not to mention the retaliatory tariffs recently passed by the U.S. House of Representatives - endanger growth prospects and could further depress financial market confidence.
Stephen Harper, Canadian economistWe have to remember we're in a global economy. The purpose of fiscal stimulus is not simply to sustain activity in our national economies, but to help the global economy as well, and that's why it's so critical that measures in those packages avoid anything that smacks of protectionism.
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