By Tyler Durden | 28 September 2017
ZERO HEDGE — Just days after The Economist primed the world with its narrative that sending 1.2 billion unskilled Africans to Europe would increase global GDP, the EU’s executive has unveiled plans to resettle at least 50,000 refugees, focusing on people from northern Africa, to bypass smugglers.
As we noted previously, The Economist’s argument is plain idiotic.
The Economist confuses countries with companies that are profit-oriented, and where people are disposable resources. Yet, countries are communities, and citizens do not usually expect their governments to merely maximize GDP. History teaches us that migration causes social unrest, disrupts social cohesion and ultimately the stability of the recipient nation. And even if we set aside these social or national considerations, the Economist’s reasoning is still false.
The whole argument breaks down on social security and the massive world oversupply of unskilled labour.
Social security determines the minimum price of labour.
If there is abundance of unskilled workers, governments step in and buy or take out of the market the oversupply of labourers for a minimum price called social welfare.