[mitthrowaway2]

How does immigration boost productivity? It's labor-saving automation and machinery investments that boost productivity. I would expect these to be driven mainly by labour scarcity. Growing the labour pool seems like it would drive exactly the opposite. As two examples, Japan has low immigration and an aging population and despite that its productivity has never been higher. By contrast Canada has had extremely high immigration and rapid population growth, and its productivity has flatlined since 2019.

[datadrivenangel]

Increasing the input labor results in more production.

[mitthrowaway2]

Yes, but we're discussing productivity not production. Production is the numerator, but productivity also puts labour hours worked in the denominator.

[dang]

Totally offtopic but could you please email us at [e-mail]? I want to send you a repost invite for something unrelated.

[arrowsmith]

You're aware of the concept of "diminishing returns", right?

[lenerdenator]

At the end of the day, you still have to have humans to both carry out certain labor tasks and consume the outputs of that labor. For example, having the ability to manufacture a car with minimal human intervention doesn't mean that you can ship steel to the stamping plant without human intervention, and it doesn't mean that the robot used to weld the car will buy one after it's built. And since "real" Americans/Canadians/Brits/etc. haven't made the babies to do the labor and consumption demanded by capital for almost 60 years now, the labor and consumption must be brought in some other way.

Ultimately you have to balance the incoming immigration with the demands that produces, and that's where a lot of countries fall short. For being as similar as they are, Americans and Canadians have radically different experiences and opinions on immigration from India, for example. Why? Americans mainly think of them as either business owners providing needed services (even if it's just as the stereotypical convenience store owner) or people working in cutting-edge and important industries, because that's who American immigration policy allows in from India. Canadians have far less charitable views, because over the last decade or so, Canadian immigration policy has been far less discriminatory. Whether it should or not, this produces social friction with people who have roots in the society that receives the immigration.