COVID has had many impacts and will continue to do so for years to come economically. Lockdowns and business closures have current impacts on people but will have a far greater impact on a countries GDP for years to come.
Quite often when people think of immigration they think of asylum seekers and I'm not sure if things in other countries are similar to Australia but many Australians are against immigration and the first thought that comes to mind are people fleeing war torn countries on leaky boats.
Thats because with all things media negativity sells as does fear and division. People don't understand or grasp the broader concept of immigration and its impacts on GDP.
With lockdowns preventing people travelling the globe it has also prevented immigration which has significant impacts on countries growth through the increasing of GDP.
In Australia our projected population was to be 38 million by 2050 with an increase of $1.6 Billion to GDP through the contribution of migration. Furthermore each migrant was tipped to contribute 10% more to our economy than current residents Source
This is because migrants often have new skills, increase availability of the workforce and help support stability of wages and industrial and technological advances.
If we look to the 90s we can see where immigration became a saviour for many tech companies. There was a technological boom with more and more people jumping online and turning "on" the internet. The issue were the skills shortage. Unemployment dropped to 4% and many tech companies were frozen unable to move forward because they couldn't compete in wages with other major tech companies.
Now this is great for people, High wages, low unemployment, everyone making a lot of cash and it all sounds great, right? You'd be mistaken for thinking that this is good. Same as when the wealth is trapped above when the wealth is trapped at the bottom it causes stagnation in the exact same way.
Too much wealth at the top means newer and emerging tech don't get access to capital to commence operations and too much wealth at the bottom means that new and emerging businesses can't entre the sector because they can't afford to enter.
Some would say that is good and means it's not needed, but that's not the case. There needs to be a happy medium and balance in all things otherwise sectors become stagnant.
I'd say current era things are a little too geared towards the top end and we are seeing alot of people air their grievances globally.
You can read abit more about immigration, tech and 90s in this Article I found online.
The economic benefits don't just generate more workers for industry they also boost local economies create more jobs and add to the overall wealth of a nation.
A good example many will know is Lil Italy in the 40s - 50s a big nation mover were Italian's who answered the call of many countries seeking to increase their skilled workforce which was needed to build roads, buildings and infrastructure.
Not only did the Italian's contribute to nation building initiatives that built many of the world's foundations across the globe they also established communities sharing in rich Italian culture, wine and food.
Now vineyards are found across the globe amongst many other cultural contributions from Italian's and many other European migrants.
However due to the increase of workers wages go down this causes the anti migrant sentiment from people. It is a balance, too many workers equates to extremely low wages. Not enough workers and wages sky rocket.
The pandemic will impact migration especially as such that India and China has been producing the most migrants to Western nations this side of history. In Australia India tops the migration list with many coming across for education and technology industry to fill the gap we have in this industry.
India tops the charts for migration with 17.5 Million people leaving India for other countries. followed by Mexico with 11.8 Million, China with 10.7 Million and Russia with 10.5 Million. You can read more Here
Australia is the go to country for other nations in the Asia pacific region with Chinese and Indian migrants topping the migration list.
The benefits of migration further support nations with increased bilateral relationships between nations as many migrants still have family, friends and networks in their country of origin it is easier for nations to build national networks through migration. It also supports peace as nations are less likely to feel threatened or affected by another nations movements of their own people are residing in the nation.
This one's an important one and we all know how people complain about it, don't go too hard on them they just don't know. People only know what they know and don't know what they don't know.
Migration increasing cultural diversity and peoples understanding of other cultures. They also have an increase in cultural immersion and enrichment. More food, more events, more understanding, increase to the gene pool. People living in culturally diverse communities are less likely to experience fear of other nations. Most of our fears are built into our lack of understanding and knowledge. People fear the unknown and by making it known we experience less fear and more food!
This further injects more money into local economies and creates more jobs and more wealth distribution.
Block Chains, Cryptocurrancy and GDP
You don't need to look no further then our current block chain Hive and Leo. It's success is built on cultural diversity and inclusion. It is a boarderless community with access to all national economies. It's own currency in shape of its native tokens creates a central point for everyone to come together and equally share the wealth.
Many nations on the platform would never have had access to wealth if it were not for Hive which many western nations are using to provide economic opportunities to smaller nations.
A scroll through the block chain and blogs and you can see many people blogging about using the chain to earn an income to buy food, pay rent and live.
The stagnation in immigration will definitely cause a wage increase amongst lower paid jobs in industry which will have price increases on basic services, amenities and manufacturing as businesses commence fighting over staff and try to out bid them. This is good as the disparity between wages and cost of living is too great.
Will it have an impact on technology? Probably not as much of the work can be done remotely and what we will probably see is legislation changes to allow internationals be employed over the internet. This has already been occurring through contract based work but we will probably see it become more mainstream.
Don't be too worried and start looking at supporting industries in technology such is IT set-up systems and support as this sector will grow as our dependence on technology also grows.
The world is changing, quite interesting to watch and I hope I'm not gobbled up by the system and spat out. Yes, we all have those fears.
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