I just posted my article, “Open Borders with Migration Taxes are the Optimal Policy,” at SSRN. The abstract:
For some reason, economists are less willing to advocate open migration than free trade, even though the traditional free trade models, such as Ricardian comparative advantage and Heckscher-Ohlin, cross-apply to migration. In fact, however, the case for open migration is stronger than the case for free trade, because it is possible to tax foreign-born beneficiaries of open migration policies, through migration taxes. It is here proven that a policy of open borders with migration taxes is Pareto-superior to the alternative of closed borders (or discretionary migration control). Political norms of local inequality aversion seem to prevent the adoption, or even consideration, of such a policy, and the enormous gains in human welfare that would result from it. Some proposals, including a World Migration Organization and passport-free charter cities, are proposed as steps towards a world of open migration.
Dani Rodrik is probably the most prominent critic of globalization among academic economists. He thinks the global trade regime and global norms favoring financial liberalization have unduly constrained the policy space available to national governments. But while he’s for re-regulating trade and finance, he wants to liberalize flows of people. He writes in The Globalization Paradox: Continue reading “Dani Rodrik Argues for More Migration” »
One of the tactics that many people on the pro-immigration side of the immigration debate adopt is to point out the unsavory “racist” and “eugenicist” associations that some immigration restrictionists have, or might have. I’m going to argue here that focusing on these associations, whether or not they are true, does not do much to advance the case for open borders, and detracts from the substantive debates. Continue reading “Accusations of racism in the immigration debate” »
Below are the top ten countries in the world by per capita GDP in US dollars at purchasing power parity, according to Wikipedia:
1. Qatar 102,891
2. Luxembourg 84,829
3. Singapore 59,936
4. Norway 53,376
5. Brunei 49,517
— Hong Kong 49,342
6. United Arab Emirates 48,597
7. United States 48,147
8. Switzerland 43,508
9. Netherlands 42,330
10. Austria 41,805 Continue reading “Hong Kong: City of Immigrants” »
In a video titled Immigration, World Poverty, and Gumballs, Dr. Roy Beck (CEO of NumbersUSA, an immigration restrictionist group) argues for the futility of trying to solve the gigantic problem of world poverty by permitting a trickle of immigration:
Dr. Beck’s goal is to argue against immigration, but a careful reading of his arguments shows that they provide strong support to substantially more open borders as a mechanism to double world GDP and end world poverty.
What Dr. Beck gets right
Dr. Beck is correct to point out that the United States currently takes in a very small number of immigrants, and even the most ambitious currently realistic proposals, which may double or triple the number of immigrants, would still be quantitatively insignificant relative to the size either of the United States or the countries sending immigrants. Further, he is also right that, with the exception of illegal immigration (most of it along the southern border with Mexico) most immigration to the US is that of highly skilled workers, rather than the few billion people who live in moderate and extreme poverty.
Thus, Dr. Beck is right to chide those supporters of the status quo who believe that current US immigration policy is making a significant direct impact on reducing world poverty. It’s not.
What Dr. Beck gets wrong and omits from consideration
Dr. Beck does, however, get a few things wrong. Most importantly, he ignores the fact that the value of an individual escaping poverty and improving his or her condition of life is not reduced by the existence of others in poverty. Saving a single starving child is no less worthwhile an endeavor if there are a hundred other starving children. Consider the story of The Girl and the Starfish (quote from Everything2.com):
Once there was a great, great storm. Waves high as mountains, winds strong as giants.
But that’s not important
What is important is the next day, when Old Man Acha comes walking down the beach, looking for bodies and treasure, the last remnants of ships gone to sleep in the storm. He has to pick his way carefully, ’cause the beach is littered in starfish, castaways from the deep. The storm plucked them from their watery beds and deposited the poor souls on the sandy shore. Acha steps around them – many still alive. He keeps ambling up the beach, minding his own business, when he spies a youngling. She’s throwing starfish into the ocean, many as she can, but still not makin’ a dent in the piles. The Old Man, he wonders at this and says:
“Why bother to throw back any? How can it matter when there are so many? You throw back one, you still left with a ton? You never save them all.”
That little girl she doesn’t even pause to glance his way. She just keeps on flinging those ‘fish back in the sea. She stops only long enough to say:
“It matters to this one”
as she flings it into the ocean.
As noted on the Double world GDP page, a literature summary by Michael Clemens suggests that even partial open borders would lead to a greater increase in world GDP than the removal of all barriers to trade and capital flows. Also, as noted on the end of poverty page, a significant fraction of the individuals from poor countries who escape poverty have done so through migration, even with currently restrictive migration policies. The country-level aggregated statistics often paint a misleading picture due to compositional effects, which is why development economists Michael Clemens and Lant Pritchett use income per natural instead of income per resident to track the effect of migration.
Finally, Dr. Beck’s argument contains an interesting asymmetry. On the one hand, he dismisses the value of a few million people from third world countries escaping poverty and/or a few skilled workers from third world countries being able to find a job in the developed world that allows them to put their skills to better use for the benefit of the world, based on the logic that these are only a drop in the bucket. On the other hand, he expresses great concern for the even more modest harms to immigrant-receiving countries.
All in all, it’s a great speech, and despite its errors of omission and commission, it does get one thing right: what the United States has today is far from open borders. Something much more radical is needed to make a rapid dent in world poverty. Kudos to Dr. Beck for spreading this important truth!