If an increase in population always made wages fall, the Baby Boom would have immiserated the American worker. When new workers come, new businesses often start to take advantage of the sudden abundance. In the U.S., it’s often the immigrants themselves who start those new businesses. If the business expansion rate keeps pace with the immigration rate, native-born wages don’t need to fall.
There is another important insight: these jobs losses and lower wages are likely to have a lasting and devastating effect. Author Daron Acemoglu told the New York Times that, “even if overall employment and wages recover, there will be losers in the process, and it’s going to take a very long time for these communities to recover. The market economy is not going to create the jobs by itself for these workers who are bearing the brunt of the change.”
Cullen Roche: Why capitalism can’t fix healthcare: Wonky read but worth it.
Tweet of the day:
The Myth of Equal Opportunity—The likelihood of a child from the 1% attending an Ivy League college is 50X that of a child in the bottom 20% pic.twitter.com/TRtcaIlv6u
— Steven Greenhouse (@greenhousenyt) March 31, 2017