Issue 2: Economics and Overpopulation (1)
The Economics of Uncontrolled Immigration
by Mike Walker, Editor
Whilst writing this newsletter, I became more aware of the absurdity of trying to justify the economic benefits of uncontrolled population growth. The ruling elite are continually putting forward the notation that there is a good economic case for increasing more and more net immigration into the UK. There is in truth, only a morally bankrupt case to do so, for selfish, political, tribal allegiances.
Since the day Tony Blair became prime minister in 1997, both Labour and Conservative governments have covertly brought in policies for a single aim. To accelerate an unprecedented mass uncontrolled, tsunami of net immigration into the UK. The argument being that this will increase Gross Domestic Product (GDP). GDP is the yearly monetary value of all finished goods and services made within this country.
It is indeed possible to raise GDP by merely increasing the net immigration rate, at least in the short term. The private sector creates the wealth which funds our public services. If companies grow and employ more, the tax revenue increases to fulfil this requirement.
However, as with most things, these benefits come at a price.
Both Labour and Conservative governments refuse to reform the welfare sector, and restrict the availability of unemployment benefit, unless a person is prepared to take any job available, whether skilled or unskilled. As a retired teacher, I have had periods of unemployment, but was prepared to work as a cleaner of toilets in the local pharmaceutical company, rather than languish on benefits.
In total, at present over nine million people, aged 16 to 64, are economically inactive and not looking for work. This number is growing. They want a particular type of job, which suits their needs in terms of conditions and wage. Successive governments are prepared to ‘foot the bill’ until their requirements are met, using the public purse! BBC reference
Employers see the answer to their problems in cheap labour, which is available with immigration. Immigrants with short term fixed work contracts up to two years, don't have full redundancy rights Redundancy Rights. In comparison to long term unemployed referrals from the UK, immigrants often have a better work ethic.
Both private and public sector have now become addicted to the quick fix of immigration.
Our education sector needs reform and investment. Countries like Germany have a three-tier education system for their children based on developing cognitive, vocational and technical training. Employers now turn abroad to address this skill shortage. In fact the skilled or rich immigrant can now dictate terms, and bring with him / her, economic family dependents. This is seen with the immigrant doctor, engineer or businessman. It is seen with the rich immigrant students willing to pay huge university fees.
So yes, indeed, a mass annual influx of cheap labour can indeed increase GDP. At least in the short term, over the tenure of a 5-year government reign. However, this does not tell the full story. A story deliberately being withheld from the people.
GDP without an unbiased objective link to immigration is deliberately misleading. We need to consider GDP per capita. This is a metric that breaks down a country's GDP to an amount per person and is calculated by dividing the GDP of a country by its population GDP per Capita
The big problem is that GDP per annum may increase, but the real indicator of the strength of an economy is GDP per capita. Whilst GDP per se may grow, GDP per capita may not necessarily grow at the same time, as explained by the organisation 'Full Fact' Full Fact and GDP per Capita.
‘GDP per capita (the total value of all the goods and services produced by a country, divided by the number of people living there) has either decreased or seen zero quarter-on-quarter growth in every quarter since Q2 2022—seven consecutive quarters as of Q4 2023.’ However, despite this when considering GDP on its own 'Overall GDP hasn't had seven consecutive quarters of no growth'
The inference from this, is that prime ministers in the House of Commons lauding their achievements with increased GDP figures, and not GDP per capita, may be doing so for reasons of political expediency!
A further consideration, often missed by politicians, is that when the population increases, there must follow an increase in the availability of public services. This must be paid for, which in turn means more borrowing, increasing taxation, or cutting some nonessential public services to finance others.
It is a now a major concern that borrowing to pay for public services is at a 20 year high (link to the population acceleration).
According to the Office of Budget Responsibility, ‘In 2024-25, we expect debt to be equivalent to 98.8 per cent of national income. It is equivalent to around £2.7 trillion or £96,000 per household.’ OBR reference. Furthermore, the National debt has hit a 20 year high BBC Reference (2)
The Office of National Statistics state that ‘At 99.5% of gross domestic product (GDP), debt at the end of June 2024 was estimated to be close to the annual value of everything produced in the UK economy’. ONS Reference
The larger the National Debt gets, as the public sector increases with net immigration, the more interest the government has to pay. Taxation will therefore increase. This will have a greater detrimental effect on economic growth, GDP becomes lower. The government increases immigration levels in an attempt to temporarily increase GDP with cheap labour. The GDP per capita crashes and the spiral towards destruction continues.
At the same time as foolishly and detrimentally manipulating the levers of legal immigration, the government loses total control of illegal immigration across the channel. All because of their ideological adherence to the worship of the ECHR,
No thought towards the inevitability of their actions, by the elite in control.
No care for this country and the future of generations to come.
Without doubt, this rabid thirst for uncontrolled mass immigration, is complete insanity!
Mike Walker
SP Editor
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