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In: Economics

Question 1 Australia’s population growth does not reflect the fertility rate because of net migration. Lectures...

Question 1

Australia’s population growth does not reflect the fertility rate because of net migration. Lectures discussed the role of immigration, but did not cover the arguments for and against increasing immigration. Present the economic reasons for and against increasing immigration to Australia.

Solutions

Expert Solution

The following Economic reasons favour immigration to Australia:

1.The migration impacting Australian economy positively in aspects of labour paricipation & Employment.

2. It has been adding to our National Skills and increasing Net productivity.

3. For Sound economy human resource is essential and for this poulation must grow over a period of time. It has been estimated if there is no migration program population of Australia would be mere 24 million unable to provide required human resource. But with migration it is projected to be 38 million and it migrated population will add $1.6 trillion to Australia's GDP.

4.Migrant population mainly belongs to prime working age and is relatively highly educated are concentrated in the prime working age group and are relatively highly educated it is going to have a positive impact on the employment rate.

5.Another benefit it will keep Australia in the category of highly skilled nation as there will be around 60 percent increase in population with university education.

But as every aspect has its positive and negative sides migration also has its cons. which are discussed as follows:

1. Resource Scarcity : We know economicresources are scarce and increase in population per capita availability of resources will decrease. Availability of land per person will decrease and prices of housing are bound to increase.

2. Overburdened Infrastructure : Infrastructure if not developed further migration will lead to shortage of facilities available to present population. For example there is a nationwide shortage of public hospital bedsand further growth will add to the demand. Many of the roads already cannot cope with the existing amount of traffic, Further increase in population will add to chaos.Similarly utilities like water etc will also be in shortage.

3.Wage decline: Migration will no doubt increase supply of labour in proportion to capital which is fixed in short run and increasing it in long run is expensive affair.It automatically will lead to decrease in wage rate.

4. Unemployment: Immigration poses a cchallenge in respect of jobs to native Australians as these that are taken up by immigrants. This is already been experienced in sectors like I.T

To conclude with declining birth rates in Australia immigration will remain necessety but it should be done in a way that its benefits outweigh its costs keeping values and character of Australia Intact.


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