the labor market is a market, and as such regulated by the rule of Supply and demand. That implies: if the supply is increased, then the price is decreased. If the supply is decreased, then the price is increased.
In the context of the labor market, that means:
If there’s fewer workers in the country (which comes naturally with a smaller population), then the price for labor (a.k.a. wages) goes higher. That increases the Quality Of Life for the people, and is therefore a socially good thing.
You’re assuming everybody has the same buying power. That is in reality not the case. If you remove 20% of the people, buying power only goes down by something like 2%. Therefore your point seems disputed?
No I’m not, I’m just not assuming immigrants have 0 buying power, which your post implicitly was. Yes supply increases but demand also increases. Beyond that you get into the realms of having to do empirical research as to which is more (which is difficult).
it’s not that difficult, it’s quite obvious that immigrants and poor people have less buying power and therefore create less demand, while probably working harder than any billionaires and therefore create more supply.
i’d also argue that is straightforward to see. i don’t see your misunderstanding?
counterpoint:
the labor market is a market, and as such regulated by the rule of Supply and demand. That implies: if the supply is increased, then the price is decreased. If the supply is decreased, then the price is increased.
In the context of the labor market, that means: If there’s fewer workers in the country (which comes naturally with a smaller population), then the price for labor (a.k.a. wages) goes higher. That increases the Quality Of Life for the people, and is therefore a socially good thing.
More people also means more demand for things that require labour to create however. Your position is referred to as the lump of labour fallacy
You’re assuming everybody has the same buying power. That is in reality not the case. If you remove 20% of the people, buying power only goes down by something like 2%. Therefore your point seems disputed?
No I’m not, I’m just not assuming immigrants have 0 buying power, which your post implicitly was. Yes supply increases but demand also increases. Beyond that you get into the realms of having to do empirical research as to which is more (which is difficult).
it’s not that difficult, it’s quite obvious that immigrants and poor people have less buying power and therefore create less demand, while probably working harder than any billionaires and therefore create more supply.
i’d also argue that is straightforward to see. i don’t see your misunderstanding?