| >Removing artificial restrictions on a free market system will increase overall productivity. It will certainly increase global GDP to remove barriers to free movement of people. The global economy isn't a free market system, it's not even close enough to a free market system to make modeling it that way useful. The entire argument that treating what isn't remotely a free market system, slightly more like a free market system will necessarily produce some result is completely misguided. But let's assume that we can actually model it this way and that completely opening borders will eventually increase overall global productivity. Even in this case, there is still an enormous problem here, the increase in productivity will take time. The market can stay irrational longer than you can stay solvent. Imagine 2 countries Richland and Pooria. Richland has a GDP per capita of $50,000, Pooria's is $500. Richland has a population of 10 million people, Pooria 50 million. Richland has expansive public services, good schools, and a fantastic infrastructure. Pooria has none of that. Now lets say that we open the borders between the 2 countries, and 10 million people from Pooria decide to live in Richland. Now eventually in this hypothetical situation, Richland and Pooria may reach an equilibrium where the average GDP of both was higher than it was before. However, this could take decades and during that time Richlands resources will be strained to the breaking point. During those decades the people of Richland would be much worse off, and the people of Pooria might not be any better off in a failing Richland than they were in Pooria. And what if Richlands entire system of government breaks down under the weight. In that case the complex sytem that allowed Richland to produce so much could collapse completely and there is no guarantee that it would ever recover. |
Please read the article and see re: opening up the Eastern European labor market, and how the feared outcomes did not materialize in Britain, including the scenario you've outlined.
Yet, when a part of the world is hurting bad enough, migration happens despite legal restrictions.
Also, pick your argument - are you claiming that the causal result of mass immigration an overburdening of the social systems, or are you claiming that markets will magically stay irrational and the benefits due to this magical irrationalism will not materialize? I think your argument is stronger if you claim that local governments cannot stay solvent, not due to markets being irrational, but due to a causal chain of events as a result of immigration.
Your argument breaks down again as we consider the intra-US case: People will not move to a more expensive neighborhood unless they can afford the bills, thus people making the move will have jobs, or failing to get jobs, would prefer if the cost of goods were lower like it is in their place of origin and stick to the lower-cost locations. Thus the distribution of people in wealthier and poorer regions self-regulate, just as it currently does in the United States. Why don't we have poor people overwhelming the school systems of wealthy neighborhoods? Because they can't afford the houses and taxes. They'd like to move in, but they can't. Economic reality still applies.