The old debate over immigration –which already has invited much discussions and debates till hitherto in the UK — never seems to end what with various people and groups expressing their views for and against it from time to time, and at the drop of a hat.
The latest to join such a debate are two well-known British economists. As per certain new reports, a heated and passionate debate on the issue has taken place between these top economic observers, namely, Jeremy Warner, and Jonathan Portes.
Warner claims that mass immigration made into the nation has decisively lowered labour expenses in the UK work stations. And this consequently has made it far cheaper for the national recruiters/firms to depend on inexpensive workers. And, hence they are not keen or in a position to invest in efficiency gain in their companies. He adds that this is one factor why there have been hardly any improvements in the country’s efficiency & production since 2005.
He further says that the UK is a free economy which positively requires being in the market for leading global talent. Still, mass low-end immigration has been not more than a zero sum game even while, by reining-in the essential investment in the future, possibly quite a not too positive economic impact.
Warner continues that no free market liberal would really express his views in the public, for stopping the recruiters/firms from employing overseas labour. However, he believes that some sort of tax, levied on the recruitment of low-paid overseas labour–could play a decisive role in boosting national productivity.
Contesting his assertions, Portes claims that since 2005 the national productivity has been sluggish. Actually, British productivity became better and regained its health somewhat from 1997 onwards, when the Labour administration stormed to power, until 2008 when the world economy melted.
Though he accepts that since the recession of 2008, British productivity performance has not been good or something to go town with, he strongly refutes the contention that immigration is a reason for the same. He adds that the reasons are compound, and there is a great deal of discussion as to what the real grounds could be.
Actually, he continues that immigration could well boost and improve the overall productivity of the country with the reason being overseas employees teach their expertise and know-how to the settled manpower. Portes concludes that aliens may actually make the market more competitive, and also play a key role in the modernization and improvement of the various products and services, in the process, giving the national economy a cutting edge on the world map.
