Category: Europe

We are informed that low-skill migrants make the native-born richer and that, therefore, a country’s borders should be mostly open (albeit never described as “open borders” because that is hate speech/conspiracy theory). We also informed that Europeans don’t want to be rich… ”Europe Grasps for Ways to Stop the Migrant Surge” (WSJ):

The biggest swing in sentiment has been in Germany, long a proponent of generous policies toward refugees. Pressure has been building in recent years as the nation absorbed millions of immigrants, weighing on the welfare system and municipal services. Migration was a key theme in Sunday’s closely watched regional election in Brandenburg, where the governing Social Democrats narrowly beat the far-right Alternative for Germany party, or AfD.

Last week, the coalition government in Berlin reintroduced limited border checks to all neighboring countries, after a knife attack in late August by a failed asylum seeker killed three people in the city of Solingen during a festival to celebrate its 650th anniversary. The attacker was a 26-year-old Syrian with links to Islamic State who had evaded deportation for more than a year after losing his asylum case.

Since the pandemic ended, governments across the continent have struggled to cope with rising numbers of asylum seekers and are grasping for ways to stem the flow, from curbing taxpayer-funded benefits to asylum seekers to striking deals with non-EU countries to temporarily or permanently house would-be refugees.

Last year, a near-record 1.14 million people filed asylum claims in Europe, the highest number since the height of the 2015 migration crisis in Europe, when more than a million Syrians fleeing that country’s civil war entered the bloc.

An extra 1.14 million/ asylum seekers per year would moderately enrich the United States, both culturally and economically. In the pre-Biden years, we were enriched by approximately 22 million undocumented immigrants (Yale 2018) and at least another 10 million have come across the border during the Dr. Jill Biden-Kamala Harris administration.

For nearly everything else that has value in this world there is some kind of market. There is “a bid”, in other words, as the Wall Streeters say. Why hasn’t the U.S. bid to take all of the migrants that Europeans don’t want? We are told that migrants are precious. Why aren’t we offering, for example, to pay Germany $100,000 per migrant and also to pay each migrant $100,000 as a “welcome to America bonus” (on top of the means-tested public housing, means-tested health insurance, SNAP/EBT (“food stamps”), and Obamaphone to which migrants will be entitled)? And if we did offer $200,000 (total) per migrant, wouldn’t we expect to face competition from other countries that seek to be enriched?

Separately, here’s a Reuters story on a beachhead in Africa that Spain continues to hold (why?). My favorite line is “Moroccan nationals detained during the crossings are immediately sent back to Morocco unless they are underage or seeking asylum, [Cristina Perez, the Spanish government’s representative in Ceuta] said.” Unless the migrants are remarkably unintelligent, why wouldn’t they all claim to fall into one of these categories? Like the U.S. system, the European immigration system seems to be premised on the assumption that humans never lie.

“Europe’s ‘Reason for Being’ at Risk as Competitiveness Wanes, Report Warns” (New York Times, 9/9/2024):

Europe must increase public investment by nearly $900 billion a year in sectors like technology and defense, according to a long-awaited report published Monday in response to growing anxieties about the continent’s economy lagging behind that of the United States and China.

Mr. Draghi said that the European Union needed additional annual investment of up to 800 billion euros ($884 billion) to meet the objectives he laid out in his report. That is equivalent to about 4.5 percent of the European Union’s gross domestic product last year. By comparison, investment under the Marshall Plan from 1948 to 1951 was equivalent to about 1.5 percent of Europe’s economic output.

Conditions that contributed to the continent’s prosperity have changed substantially since the coronavirus pandemic and Russia’s invasion of Ukraine. Cheap Russian gas is no longer available, and energy prices have soared. Those prices have come off their peak, but European companies still pay two to three times more for electricity than U.S. companies, the report found.

We are informed that low-skill migrants make developed countries rich. Europe has welcomed nearly 50 million non-European migrants (source through 2020).

Why does Europe need more government spending, as a percentage of GDP, to become rich if it was already enriched by low-skill migrants?

Related:

• “Our giant welfare state” (Washington Post, 2014), in which we learn that only the French spend a larger percentage of their GDP on government hand-outs
• Heritage Foundation on Germany, finding that it spends 50 percent of GDP on government (higher than the U.S., but the U.S. percentage is distorted because we don’t include nominally “private” spending on health care (which is so regulated and mandated by the government that I think it should be included))
• Heritage on France (60 percent of GDP spent by the government)
• Heritage on Poland (45 percent of GDP spent by the government)
• Heritage on Taiwan (18 percent of GDP spent by the government (and 82 percent by TSMC?))
• Heritage on South Korea (26 percent of GDP spent by the government)

“Europe Has Fallen Behind the U.S. and China. Can It Catch Up?” (New York Times, June 5):

Europe’s share of the global economy is shrinking, and fears are deepening that the continent can no longer keep up with the United States and China. … Beijing and Washington are funneling hundreds of billions of dollars into expanding their own semiconductor, alternative energy and electric car industries, and upending the world’s free trade regime

The secret to wealth is government spending and European governments aren’t big enough.

Private investment lags as well. Large corporations, for example, invested 60 percent less in 2022 than their American counterparts, and grew at two-thirds the pace, according to a report by the McKinsey Global Institute. As for per-capita income, it is on average 27 percent lower than in the United States. And productivity growth is slower than other major economies, while energy prices are much higher.

The journalists ask us to contemplate an unimaginable horrible scenario:

Imagine if every state in America had national sovereignty and there were only limited federal power to raise money to fund things like the military.

In other words, imagine if the U.S. Constitution were followed and the federal government’s powers were limited to those spelled out in the document.

The news isn’t all bad:

For more than a decade, Europe has been falling behind on several measures of competitiveness, including capital investments, research and development, and productivity growth. But it is a world leader in reducing emissions, limiting income inequality and expanding social mobility, according to McKinsey.

Europe could be leading the leaders in leading even more if governments would hire leading consultants at McKinsey more frequently. Speaking of leaders, the leaders in journalism don’t ask what seems like an obvious question: Science proves that low-skill immigrants make societies rich. Europe is rich in low-skill immigrants, while China is impoverished in low-skill immigrants. “China has the smallest number of international migrants of any major country in the world. Compare its 0.1% of immigrants with near 14% in the U.S. and 18% in Germany.” (Texas A&M, which also notes that immigrants are “very productive”). Shouldn’t Europe’s economic growth be higher than in the U.S. and China?

The NYT article doesn’t mention immigration, except to point out that only a “far-right” political party could question the wisdom of open borders.

Separately, I wonder what would happen if we subtracted out NVIDIA, Facebook, Apple, Google, and Microsoft from the U.S. economy. Maybe without Big Tech, the U.S. and Europe would be roughly comparable.

Speaking of the U.S. economy, here’s a chart from zerohedge showing that the number of native-born workers in the U.S. is unchanged compared to 2018:

To find the promised economic enrichment from the presence of migrants we would have to look at the extent to which real wages for the native-born have increased. If we adjust for inflation under the old formula, real wages are likely lower than in 2018. That’s certainly true here in Palm Beach County, Florida.