Goodwin: Our economy resembles a Ponzi scheme

For years, a narrative has been perpetuated—a story suggesting that welcoming large numbers of immigrants into our country would inevitably lead to economic benefits for everyone. The argument, frequently championed by influential voices, posited that increased population meant greater GDP and a more vibrant economy.

However, this long-held belief is now facing serious scrutiny. A recent report from the International Monetary Fund (IMF), a globally recognized financial institution, challenges this conventional wisdom with startling findings.

The IMF’s analysis reveals that widespread immigration of low-skilled workers is actually contributing to depressed wages for some of the most vulnerable members of our society.

Is this truly a revelation? Or simply confirmation of what many have suspected—that policymakers have been operating under flawed assumptions for decades?

The impact has been felt acutely by working-class individuals – the plumbers, electricians, and countless others who instinctively understood that an influx of low-skilled labor could potentially dilute their earnings. It’s a principle rooted in basic economic understanding: increased supply often drives down prices, including wages.

Despite attempts to rationalize this phenomenon, the evidence has been readily available. Consider these points:

  • In recent years, net migration reached an astonishing 2.3 million. Yet, during this period (leading up to 2024), economic growth remained stubbornly stagnant.
  • Productivity in the UK has barely improved over the past 15 years.
  • GDP per capita is heading in the wrong direction.

The reality is that large corporations have become reliant on readily available and inexpensive migrant labor, prioritizing their own profits at the expense of broader economic prosperity.

“Mass, uncontrolled immigration is making us poorer,”

This influx overwhelms the system, undermining wages for existing workers and discouraging innovation and productivity improvements within companies. Even the Office for Budget Responsibility, an entity often associated with supporting these policies, acknowledges that low-skilled migration represents a net cost to taxpayers.

So, what course of action should we pursue?

  • Significantly reduce immigration levels to more sustainable numbers.
  • Prioritize skilled immigrants working in high-wage sectors.
  • Focus on welcoming individuals from culturally compatible nations.

For years, successive governments have ignored the will of the people and pursued policies that contradict popular demand. The public did not vote for this.

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