Posts tagged with: gary becker

Immigration is never a light topic to discuss, and even the proposition of a solution to the effects caused by immigration might well be considered radical. The idea of a harmonious multicultural society is idealistic, but in reality, is very difficult to achieve.

When looking at the advantages and disadvantages of immigration, relative to the nation receiving immigrants, the economy is a concern that often comes up. In a recent IEA (Institute of Economic Affairs) paper, Nobel Prize winner Professor Gary Becker proposes a way in which the economy and the government of the country receiving immigrants could benefit. He believes that governments should sell the right to immigrate. Becker says, “The government should set a price each year and anyone would be accepted, aside from obvious cases such as potential terrorists, criminals and people who are very sick and who would be immediately a big burden to the health system.”

Becker uses the United States as a model for how the solution might play out. The U.S. has been admitting about one million legal immigrants a year. He says, “At a price of $50,000 per immigrant, let’s suppose this would attract one million immigrants.” At a 5 per cent interest rate, it has a present value of roughly $1 trillion. Of course, different countries could charge different rates, and the option of offering loans to those who couldn’t pay the amount up-front is a possibility. Through this solution, Becker believes a country would get immigrants who are young, skilled, and have the greatest commitment to the country.

Becker’s use of the United States as an example seems to suggest it is experiencing a revenue problem. But in fact, the government has a spending problem, not a revenue problem.

Immigration is not a new concept; it has been taking place since the dawn of time. Since the early days of Christianity, the welcoming of others has been encouraged.  In an interview with Thomas C. Oden in Religion & Liberty,” Oden notes, “Ancient Christian writers knew that all Christians were being called to receive strangers and travelers hospitably.” But this does not get to the question of whether the stranger is entering under lawful pretences. These two viewpoints often conflict. Oden goes on to say, “They conflict dramatically between those who would emphasize the hospitality in an absolute way, and those who would emphasize the moral requirement of following the law as a part of a just social order, including the duty to respect legal borders.” So even among late and present day Christians, there is great contrast in opinions regarding this issue.

But among Christians, policy makers, and all people for that matter, the key component to any decision should be based on human dignity. Becker’s proposal works to boost the revenue of countries, but seems to take lightly the rights of the immigrants themselves.  Sure, they will be accepted into the country and may eventually enjoy the same benefits as a natural-born citizen, but under the proposal, they are treated more as a commodity than a human being.

Although Becker’s proposal would work to moderate the illegal immigration problem, by offering a viable option for immigrants to enter legally, it does not address the cultural differences and religious factors that often play a large role in the discontent surrounding immigration. Germany, for example, has expressed great concern over the large influx of Muslim immigrants (coming mainly from Turkey) entering its borders. The predominant religion in Germany has long been Christianity, although church attendance rates have experienced a rather steady decline. The Turkish immigrants have proven to be very devout in their Islamic faith, which has made Germany question how strongly it wants to hold onto its Christian roots. These religious differences have fueled much of the debate which still continues.

The topic of immigration raises many questions about how it should be handled. Not every country holds the same stake in each issue surrounding immigration (culture, religion, economics, etc.), but each decision made should be premised on the dignity of the human person first. Becker’s proposal seemingly focuses on a solution based solely on revenue concerns. By doing this he fails to recognize immigrants who immigrate for humanitarian reasons (lack of resources, economic oppression, etc.)  For people yearning for freedom, having to pay a considerable amount to enter a county doesn’t exactly fit within the mantra of liberty. Use of the free market is in many cases a good thing, but when its use undermines the very freedom it attempts to foster, it is violating its own principles. This does not mean the immigration system should not be revised; restructuring the legal immigration system in the U.S. and other countries would help a great deal. But, in order for these changes to be truly positive, they should first and foremost be based on the dignity of the human person.

 

Blog author: jballor
posted by on Monday, December 11, 2006

Gary Becker and Richard Posner examine the increasing gap between the rich and poor in terms of wealth and income. This gap was most recently highlighted in a report that “the richest 2% of adults in the world own more than half of global household wealth,” and the richest 1% hold 40% of wealth. The report was issued by the World Institute for Development Economics Research of the United Nations University (PDF).

Becker seems to accept that wealth inequality is essentially a problem, and seems at pains to show that “the inequality in wealth appropriately defined is not nearly as large as the report might suggest, and wealth inequality in the world has almost surely become smaller over time, not larger as some in the media reported.”

Posner acknowledges that income inequality is increasing in the developed world and in some rapidly developing nations, but seems less concerned. He raises three possible negative social consequences of “the existence of a stratum of exceedingly wealthy people.”

Of the three, the third I think is the most important and real: “Huge personal wealth may play a disproportionate role in political competition. Personal wealth confers an enormous advantage on a candidate, but also permits a person who does not want to be a candidate to exert an influence on candidates and policies.”

I don’t think income or wealth inequality in itself is necessarily negative, and so I tend to agree with Posner’s emphasis rather than Becker’s. The problem comes when the economic power of the wealthy is used to disproportionately skew policy in their favor at the expense of less economically powerful classes. But as a whole, I think the concern about wealth disparity is more due to its effect on subjective well-being, or happiness, and the resulting envy that is engendered.

But, as Ron Sider of Evangelicals for Social Action admitted in a recent debate with Rev. Sirico, the concern for policy-makers should not be primarily the happiness level or sense of subjective well-being of citizens, but rather how the poorest of the poor are doing, whether the objective floor of material well-being is being raised or not.

Sider has said that he would not be concerned with an increasing gap between rich and poor so long as the living standards of the poor were also increasing (so long as that increased concentration of economic power does not manifest itself in corruption of the political process, via rent-seeking, et al.)

People are much more likely to vote with regard to their subjective sense of well-being, however, so that politicians are easily manipulated into catering to their constituency’s sense of happiness rather than appealing to their objective betterment.