Consequences of Immigration for Public Finances

Out of the University of Amsterdam School of. Economics (van de Been et al.)

From Table 0.2, Average net contribution of immigrants to public finances, by immigration motive and region, including the cost for the second generation

Labor immigration from Japan,
 North America & Oceania            625K euro
Asylum immigration from Africa    - 625K
Study immigration from EU            75K
Study immigration from Africa     - 250K


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One of the Congressmen who made that junket to the border the other day, was on the BBC news last night.

His issue with the administration’s budget request for more money for Border Patrol agents and more immigration judges to assess asylum requests, is more judges would mean more claims processed faster and more people admitted to the US. He doesn’t want anyone from the south coming into the US. Read what you want into his position.



He is from the South. Deport him and don’t allow him to return.

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iirc, the Congressman in question was from Montana.

In the upper Midwest, declining population in rural areas makes for shortages of people to work in meat packing. They seem delighted to get more with green cards.

Most asylum seekers get rejected. Faster processing means more green cards but also less time in the US for those rejected.

Long delays are a problem that should be addressed.

The congressman’s position was clear: he doesn’t want anyone coming in across the southern border. As a Senate luminary said the other day “the US is full” (at least of the people who come across the southern border), As another luminary said a few years ago, the problem is they aren’t from Norway.



That is his problem.

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Borderless Welfare State: The Consequences of Immigration for Public Finances

“If immigration remains at the 2015-2019 level in terms of size and cost-benefit structure, the annual budget burden will gradually increase from 17 billion euros in 2016 to about 50 billion euros per year in the long run, a threefold increase that the welfare state most likely wouldn’t survive.”

High levels of immigration are fuelling Britain’s housing crisis, according to the Bank of England’s chief economist…

He said “quite large increases in immigration” were piling more pressure on Britain’s housing stock, after net migration hit a record-breaking 745,000 in 2022…

“To some extent, the rents are really a reflection of supply and demand factors [and] reflect things that aren’t to do with monetary policy.”


Labor shortages mean higher prices for meat and other agricultural products. I am glad that California does not have that problem.

17 billion euros in 2016 = 50 billion euros in 2050 at 3% inflation. Not much of a problem!

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At the same time, British “JCs” are crying “no-one wanna work” because BREXIT cut off their supply of cheap, eastern European workers. Meanwhile, the PM is shipping immigrants to Rwanda.


From the Dutch report: “All amounts in this report are expressed in 2016 euros”

It would indeed seem that a welfare state is not compatible with open borders.


Not in the short term, but it is compatible in the longer term.

Anyway do you bring right wing political meme “open borders” into the discussion with your right wing economics from Netherland?

From your OP link:

12.1 Free immigration is incompatible with a welfare state
Open borders and a welfare state do not go together. In the words of Milton Friedman, the American Nobel prize winner in economic sciences: You cannot simultaneously have free immigration and a welfare state. Our welfare state has undergone the necessary austerity in recent years, but is still relatively generous internationally. In order to keep this up now, it is necessary to have a grip on the size and composition of the immigration. We cannot let in large numbers of potential heavy users of the arrangements of the welfare state without undermining the welfare state.

What is your longer term? The study covered through two generations.

Net contribution of immigrant to public finances including the cost for the second generation:

+ 625 euros for labor immigration from Japan, North America & Oceania
+  75 euros for study immigration from EU
- 250 euros for study immigration from Africa
- 625 euros for asylum immigration from Africa


As I said earlier it is not a problem. The issue is blown out of proportion with right wing economics. Also the Dutch only have borders with Germany and Belgium which are open just like the US borders are open between our states.

You did say that, but you didn’t support your position.


Based on manufacturing merchantilism Africa has a vastly worse deal.

In support of Jaaks position the numbers are skewed by under paying for their labor. Pay them properly and the numbers would be massively positive.

Which is what happpens in the US all the time.

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The minimum wage for adults in the Netherlands is $14.31 per hour which is higher than in Ireland, for example ($13.69). In addition, social spending as a percent of GDP is also higher in the Netherlands.