The following appeared in the editorial section of a local newspaper:
"The inflow of immigrant workers into our community has put a downward pressure on wages. In fact, the average compensation of unskilled labor in our city has declined by nearly 10% over the past 5 years. Therefore, to protect our local economy, it is essential to impose a moratorium on further immigration."
RESPONSE:
The author arrives at the argument, Inflow of immigrants has led to a downward pressure on the wages basis on the fact that the average wages have declined by 10% in the last 5 years. The author hence wants a moratorium to be imposed on further immigration. The argument is not complete in arriving at the conclusion.
Decline in compensation is a function of demand and supply. There are multiple reasons why there can be a decline in wages which may or may not be influenced by the inflow of immigrants. Following are some scenarios - If the economy is sluggish and there is a reduction in demand for unskilled labours, there can be a decline in wages. If due to the impact of technology and automation, the number of jobs come down, there can be a decline in wages and if demand is not growing in proportion to the increase in number of jobs, there can be a decline. All these scenarios are clearly not dependent on the inflow of immigrants.
There can be many repercussions if the decision is taken without such a study - what if the locals are progressing and the number of locals seeking unskilled labor jobs is reducing drastically and the only way the economy can grow is by encouraging immigrants from the other countries who will gladly take up these jobs and help push the economy's growth?. The decision would have ended with serious consequences.
The argument would have been stronger if the author chose to mention a study where the trend in number of jobs available during this five year period along with the number of immigrants flowing into the country has been analysed given all these immigrants qualify as unskilled labours. This study would have given the author a much stronger footing from where he could have decided to push for a moratorium or not.
The authors point may have been valid, but the decision needs to be taken only post a thorough study of the current scenario from more than one perspective and not based on a single point fact of reduction in labor wage.
"The inflow of immigrant workers into our community has put a downward pressure on wages. In fact, the average compensation of unskilled labor in our city has declined by nearly 10% over the past 5 years. Therefore, to protect our local economy, it is essential to impose a moratorium on further immigration."
RESPONSE:
The author arrives at the argument, Inflow of immigrants has led to a downward pressure on the wages basis on the fact that the average wages have declined by 10% in the last 5 years. The author hence wants a moratorium to be imposed on further immigration. The argument is not complete in arriving at the conclusion.
Decline in compensation is a function of demand and supply. There are multiple reasons why there can be a decline in wages which may or may not be influenced by the inflow of immigrants. Following are some scenarios - If the economy is sluggish and there is a reduction in demand for unskilled labours, there can be a decline in wages. If due to the impact of technology and automation, the number of jobs come down, there can be a decline in wages and if demand is not growing in proportion to the increase in number of jobs, there can be a decline. All these scenarios are clearly not dependent on the inflow of immigrants.
There can be many repercussions if the decision is taken without such a study - what if the locals are progressing and the number of locals seeking unskilled labor jobs is reducing drastically and the only way the economy can grow is by encouraging immigrants from the other countries who will gladly take up these jobs and help push the economy's growth?. The decision would have ended with serious consequences.
The argument would have been stronger if the author chose to mention a study where the trend in number of jobs available during this five year period along with the number of immigrants flowing into the country has been analysed given all these immigrants qualify as unskilled labours. This study would have given the author a much stronger footing from where he could have decided to push for a moratorium or not.
The authors point may have been valid, but the decision needs to be taken only post a thorough study of the current scenario from more than one perspective and not based on a single point fact of reduction in labor wage.
