Papademetriou: More Immigration Is Inevitable, But Overcoming Its Challenges Isn’t
2021/11/29 Leave a comment
Good overview of the issues and perspectives, but hard to see how USA can overcome the divisions and politics involved:
With the Census Bureau reporting a significant dip in total U.S. fertility rates—and a correspondingly lower population growth—in the past decade, the specter of demographic and economic “decline” seems to be preoccupying many commentators. Two groups have dominated the debate. First, prophets of doom who have legitimate concerns about increasing old-age dependency ratios (the ratio of the population sixty-five years and over to the population aged fifteen to sixty-four, multiplied by a hundred) but who are also worried about the size of the GDP—rather than the much more meaningful GDP per capita—and apparently equate population size with the ability to project global power. The second group is most pro-immigration advocates and activists who see in the data an opportunity for much larger immigration intakes. As the positions of the two groups dovetail nicely, the political argument for much more immigration appears to be irresistible.
And it may well be. Unsurprisingly, both sides have their usual blinders firmly in place and frequently rely on hyperbole. But are their arguments based on sound analyses? And are they politically viable? As is typically the case with complex matters, the deep divisions about immigration intake (approximately two-thirds of whom are family members), and particularly the manner in which certain immigrants enter (illegally and increasingly by crashing the southern border), the political viability of increasing immigration substantially appears questionable. This political reality will persist at least until we reestablish legality and order at our borders, reform our immigration system to align much better—and more clearly—with our economic needs, and reach out to include the millions of U.S. workers who are not in the labor force. Investing in the education and training of such typically “forgotten” and marginalized potential workers, most of whom are traditional and immigrant-origin minorities and women, and assisting them to find their way into the active workforce, is an imperative not only to maintaining a just society but also to the long-term economic health and stability of the nation. It is also a prerequisite to giving the government the “license” to admit more immigrants without fueling greater divisions and the intolerance that such divisions generate.
Looking at the demography/immigration nexus more closely, the most sensible policy position is that those who worry about the size of the U.S. population first and foremost, need not worry so much. It is perfectly reasonable for policymakers, however, to be thinking harder about how to address persistent lower fertility because of its longer-term effects on faster aging populations, the fact that fewer people will be contributing to retirement support systems while progressively more will be gaining access to them, and, in the out years, about “negative demographic momentum,” whereby ever smaller numbers of women in child-bearing ages have fewer children—the citizen workers that will keep the economy humming and the broader society healthy.
But while size may matter, there are many things that matter much more. The first tier items include a well-educated workforce that invests in lifelong learning and public policies that encourage them to do so; a private sector that prizes both formal and informal (tacit) skills and experience and rewards workers for continuing to invest in themselves; gradually tweaking social policies to extend working lives, and hence delay the age that formal retirement begins—so that there is less anxiety about worker shortages; and, of course, much better health care systems that create the conditions for extending people’s working and post-retirement lives.
Source: More Immigration Is Inevitable, But Overcoming Its Challenges Isn’t
