Migration 'addiction' affects Americans' productivity - WSJ.
Companies and national governments are suffering from a "dependence" on migration, hurting productivity that could boost personal incomes and overall national wealth, say economists cited in a report published Monday in the Wall Street Journal.
"Increased reliance on low-skilled immigration can lead to slower productivity growth, which ultimately determines the rate at which economies expand," the March 4 article wrote.
This article provides examples of two sharecropper dairy farmers in Wisconsin. One farmer supports the use of cheap labor supplied through the government's informal illegal migration program. The second farmer, however, has invested in robotic cow milking devices: Onan Whitcomb spent $800,000 on four Dutch-made cow milking machines. Milk production per cow increased by 30% and mastitis, an inflammatory disease, decreased by 80%, which means less antibiotic costs. Whitcomb says he was able to cut 2.5 jobs and the investment paid for itself in seven years. "We were milking 300 cows and now we're milking 240 and still getting more milk," Whitcomb said.
Many farms pay illegal migrants very little and force them to live in poor conditions. The New York Times recently noted that the migrant shortage is forcing local employers to increase the productivity of their employees through additional training, scheduling and the introduction of new machinery. Canada is also facing a drop in productivity as a result of the influx of large numbers of unskilled labor, said economist Mikal Skuterud, a lecturer at the University of Waterloo in Ontario. As a result, output per person has fallen since 2018. To increase productivity, the Canadian government must embrace the labor shortage, said Beata Karansi, chief economist at TD Bank Group, at an event hosted by Canadian Bank Economists in December 2023.
The Wall Street Journal article cites data from the OECD that shows agricultural productivity rising in low-immigration countries but stagnating in high-immigration countries, where farmers prefer low-skilled cheap labor over investment in high-tech equipment.
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