The Economic Effects (Positive And Negataive) Of Immigration In Australia.

1672 words - 7 pages

1. IntroductionA larger population, generally results in a larger economy (Source: It is for this reason that immigration plays such a key role in developing Australia's economy and transforming it into a world power. Immigration possesses not only economic advantages, but socially rewarding changes for those countries who are accepting of migrants in what has been termed, "the age of migration". Australia's long experience as a 'country of immigration', especially during the post-Second World War era, has given Australia an almost unique capacity not only to cope with new migration pressures but also to develop policy and program approaches which maximise the benefits of immigration (Source: If immigration policies are developed in an effective manner, the advantages this can have on an economy are enormous. This analysis will examine whether Australia has implemented such policies effectively and if so what affect this is having on the economy. This analysis will take form under the following sub headings:The value of immigration to AustraliaThe composition of migrants who venture to our countryCurrent government immigration policyImpact on current economic conditionsLong vs. short term implicationsOptimum population levelCurrent issues Australia faces regarding immigration2. Value of immigration to Australia2.1 EconomicallyWhen analysing an economy, an integral reference point is its Gross Domestic Product (GDP). Currently, Australia's GDP totals approximately 600 Billion dollars. Migrants and children of migrants have accounted for almost 60% of GDP growth since the conclusion of World War II (Source: Year Book Australia, 2003). If not for migrants, Australia's economy may be as little as one half the size it is today (Source: Year Book Australia, 2003). This growth can be attributed to an increased workforce, larger tax paying group and larger and more diverse industries. A substantial increase in GDP is one of the many advantages that immigration provides the Australian economy.Although it is argued that "an increase in migrants in the workforce displaces many Australians from occupying the same job" (Source:, this is largely untrue as the increase in demand for goods and services created by the migrants, will in turn create more jobs.2.2 SociallyImmigration carries a great value to Australia not only economically, but socially. Australia's ageing population, also known as the "baby boomer's generation" is a great concern to Australia. Immigration has been used several times in Australia's history to neutralise ageing populations by decreasing the gap between the elderly and the youth. Immigration Minister Hurford in the early 1980s claimed that "the benefits of immigration in reducing the relative costs of an ageing population were one of the key reasons for a Labor...

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