Question

In: Accounting

Some trade unions fear that the free movement of people depresses wages of ordinary workers because...

Some trade unions fear that the free movement of people depresses wages of ordinary workers because immigrants from other European countries are willing to work for lower wages. Should the free movement of people thus be restricted for some countries or for certain time periods.

Solutions

Expert Solution

In my opinion, if the free movement of people is restricted for some countries or for certain time periods , it may decline the GDP of the specific country.

for example - suppose there is a country where workers are not fully skilled but the resources are in optimum. if the country allows the skilled workers of other countries, it will increase the GDP of that country but if the country does no do so, it will really decline the GDP and thus the economic development will decline.

so to restrict the free movement of people for some countries is not the solution to save the interest of ordinary workers while the skilled training is the most important solution to save their interest. if a special training is provided to them, will help them to work in a more skilled manner that will end the fear of getting low wages by ordinary workers.

Better apprenticeship and skilled training is the best method to save their interest that will not hurt the spirit of globalisation for the freee movement of people.

so, trade unions should not fear for this issue, these should work to give some skills to these ordinary workers o make them more efficient so they are not considered low as compared to the skilled workers of the other countries.

  


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