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Dani Rodrik on guest workers

Here, and on another topic don't forget wunderkind Ben Casnocha's new book.

Posted by Tyler Cowen on May 21, 2007 at 01:35 AM in Economics | Permalink

Comments

A good reason to support a guest worker program is that open inmigration is not politically feasible. The NYT does not like the guest worker program but fails to support open inmigration. Rodrik supports a guest worker program but fails to address the issue of open inmigration. As Gordon Tullock has argued, national borders are the main source of world-wide inequality.
Another good reason to support a guest worker program today is that it may be the only way to solve the "flow" problem of inmigration as a prerequisite to solve the "stock" problem posed by (at least) 12 million illegal inmigrants. As anyone familiar with solving financial crisis knows, you cannot solve a "stock" problem, if you don't solve first the "flow" problem. Given the large gaps in opportunities between most of LA+Caribbean and USA, it may requiere a large, generous (few restrictions), and easy to enforce guest worker program to solve the "flow" problem.

Posted by: Edgardo at May 21, 2007 6:49:58 AM

Worldwide inequality is extremely important to me. The mean world standard of living is way way way below mine, and I have no desire to experience it.

My ancestors worked very hard and smart to secure this awesome standard of living for me, and I see no reason why we should flush their hard work down the toilet.

Posted by: Bill at May 21, 2007 6:57:43 AM

--national borders are the main source of world-wide inequality. --

Has nothing to do w/their laws, regs and who's running the joint?

So, what's wrong w/the former breadbasket of Africa? And North Korea? Ever look at a map of that country at night?

Mexico enshrined PEMEX in their constitution and it's falling apart, to do anything they'd have to change their constitution and admit they were wrong and maybe even ask us for help. Don't we and the Brits build the best refineries?

Posted by: Sandy P at May 21, 2007 10:47:11 AM

Sandy and Bill, I'm glad to hear that you're enjoying a good life in your country (I assume you are Americans living in the US). My poor grandparents moved to Argentina in the late 1800s, and although they were lucky hardworkers, by the time I was leaving college Argentina was no longer a good place for hardworkers. 40 years ago I left Argentina to get a Ph.D. in Minnesota and thereafter I have never lived in Argentina. I have been lucky to work and live in other countries; today I live in Chile and I'm ready to move to Spain. One of my sons and his children were born in the US and live there. I hope all harworkers have the opportunity to move out from places that are not good and safe for their life and property and into countries where they have the freedom to work hard and enjoy a good life. You will continue to benefit from having these people in your country.

Posted by: Edgardo at May 21, 2007 11:22:11 AM

How many people live in countries with lower average per capita GDP's than Mexico's?

Five billion.

Anmerican immigration policy can't possibly have more than a negligible effect on the average standard of living of those five billion people. What can make them better off is fundamental reform in their own country, as in China after 1978 and India after 1991. However, countries that export a large proportion of their discontented to America, such as Mexico, Philippines, and El Salvador, are notoriously resistant to fundamental reforms at home, in part because America provides a safety valve for the ruling class to bleed off discontent.

Posted by: Steve Sailer at May 21, 2007 8:23:54 PM

Tyler,

Please interact more with Dani. Hes become essentially your only competion for best econ blogger. As much as I agree with Brad Delong and disagree with you, I do like your blog much more than his. You and Dani should simply engage each other, as you have done with Matthew Y. and a few others out there. It makes the world a marginally better place, and I personally would appreciate it.

I like the reemergence of the public intellectual. It is an important part of the changes resulting from the internet, for me at least.

His arguements are typically well spoken. That is, the points of the arguments are easy to understand in laymans terms.

This particular issue is a very good exemple. I've been largely against the guest worker program on cultural buy in stance, with a subsidiary argument that the laws as they are written are unenforcable. However, Danis point that this program, viewed from a human capital point of view, is more important than trade is extremely persuasive to me.

Why? Communism is largely a dead view of the world, and one of the main reasons was that the people that were part of the system, that is the generals, government officials, and diplomats that were allowed to travel to the US got to see our system in action, how it worked and simply how good it was. When contrasted with the propraganda of the Soviet system, it was clear to any rational, talented person who was lying and who was telling the truth. As Regan famously said, "People vote with their feet."

With a well designed guest worker system, we will be exporting the best thing about America, to the places that need it most. I overlooked this point, and Dani made the case for it. It is hugely important, and hasnt really been articulated in the discourse. "This is how you do things in America, and look at them. They are rich." Its a pretty big point.

You should read the book, "Look to Windward" by Iain M. Banks. It deals with this issue with great insight.

Posted by: mickslam at May 21, 2007 9:37:53 PM

The notion that bringing young people in from around the world to show them how rich us American are is the way to get them to love America and the American way is naive, to say the least. It sure worked with Sayid Qutb in the 1940s and Mohammed Atta in the 2000s!

To understand the psychology of how this can backfire, see John Updike's brilliant 1978 novel The Coup about a hyperintellectual young African whose four years at a Midwestern liberal arts college make him anti-American for life.

Posted by: Steve Sailer at May 21, 2007 11:52:09 PM

Edgardo -

How many immigrants get Ph.D's?

Posted by: CrankyPants at May 22, 2007 5:36:53 AM

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Posted by: 謝文豪 at Apr 2, 2008 8:04:46 PM

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