Is the western world disappearing? Should we worry? What are the implications?
The most direct concern is that we are aging and we need someone to support us. As things stand now, it is not going to come from our direct siblings. We need fresh new blood.
This is where immigration plays an important role. Governments have promised, and we demanded, protection when we retire and become old. These are great ideas. But someone has to work and pay taxes to support these programs.
As an immigrant, I created wealth. I paid taxes, which have been redistributed to the rest of the community to support needed social programs. I employ several poeple in by business. Because of demographic trends, other immigrants will do the same for me, otherwise social programs will have to be cut.
But there is another angle to immigration. The world is in turmoil because the income differential among nations is widening. It is not a coincidence, as I discussed after 9/11, that acts of terrorism happen between rich and poor countries. See our website www.peterdag.com under Understanding the Markets.
Immigration allows wealth re-distribution. Money earned by immigrants in wealthy countries is quite often sent to relatives left behind.
What I am trying to say is that the “market” is solving several problems. The decline of population growth puts at risk social programs. The new blood coming to the countries with loss of population allows these programs to survive. Immigration also allows a “friendly” way to redistribute the wealth of the west.
It is not a perfect world. The issue of income differential is a serious one and is not resolved by insulating the rich countries from the poor ones or through acts of terrorism.
(This Observations appeared in the 11/11/02 issue of The Peter Dag Portfolio)
More details in my The Peter Dag Portfolio , in Dag's Exclusive market Alert, and my free educational videos on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest
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