Wednesday, July 18, 2007


I feel like I need to qualify my support for immigration after declaring that the Solow model predicts that a larger population leads to a lower standard of living in my previous post.

One, increasing immigration would be a negligible percentage of the population, ergo a minute wage adjustment.

Two, vast regions of Canada are probably still underpopulated - an increased population would lead to economies of scale in these areas. E.g. when adding labour to a factory floor, each person is presumed to add less and less to output. But what about adding a second person to help the first? Likely the average output would rise.

Three, I approve of cultural spread. My life would be greatly diminished if I did not have access to good ethnic food on a regular basis. Similarly, extending our rights to those less fortunate is also a noble goal.

Basically, what it comes down to is "a reduced population won't hurt most anyone and could help some" (see point two and Newfoundland outports for exceptions) and "an increased population won't hurt most anyone and could help some".

Hrmm. I seem to have talked myself into a corner. I will attempt to resolve this issue. Will keep you posted.

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