Saturday, 2 May 2009

The 1% Ponzi Scheme: The Fallacy Of Justifying Mass Immigration On 'Unlimited Growth'.

When the Canadian economy was "booming" the mass immigration lobby said Canada needs to maintain historically high immigrant intake numbers with increases to match 1% of the population to sustain the growth. Indeed, the idea that Canada should have an immigration policy where intake numbers are calculated at 1% of the population is self serving to the mass immigration lobby since it guarantees continuous increases in immigration targets irrespective of need. Now that the "Great Recession" is upon us there seems to be little justification for continuing a mass immigration policy even in the short term. However this is not so. It seems Canada still needs to maintain high immigration targets to prepare the country for a recovery. How about that? When the economy is booming the nation needs mass immigration. When there is a recession Canada needs mass immigration.

It appears this Orwellianesque kind of "double think" is being employed to protect those who have built for themselves livelihoods that are directly dependent (immigration lawyers, immigration consultants, social workers, ethnic vote pandering urban politicians and other "rent seekers") and indirectly dependent (journalists, banks, wage suppressing interests in the business community, Realtors and land speculators) on Canada's immigration policy.

A problem inherent in the interests of the mass immigration lobby is the idea of "unlimited growth". The justification for mass immigration targets and ever increasing targets is the belief, or assumption, that growth is unlimited. But is there such a thing as unlimited growth? I'm sure this can be debated but so far as I know we live on a world of finite resources thereby placing a constraint on any notion of unfettered growth.

Here is an article I read in the business section of the Toronto Star about the slowing effect boom era debt will have on the recovery.

Whether this fragile optimism is warranted is still open to debate, but most economists agree a recovery will take root sooner or later.

Attracting far less attention is what that rebound will look like. Hopes remain for a U- or V-shaped recovery – a relatively rapid return to pre-recession economic growth rates.

But some experts are warning post-recession growth will be markedly lower than the pre-contraction boom. In their analysis, the massive debt levels that goosed economic growth before the financial crisis, and are now in the process of being unwound, were unsustainable.

The suggestion here is that part of the "boom" Canada was experiencing prior to the crash, and necessitating mass immigration levels or so we are told, was buoyed by debt and was thus artificial and unsustainable. This is why the recovery will take longer than usual because part of the prosperity we were experiencing was an illusion created by credit and debt.

Take away the orgy of easy credit and the economy is bound to grow at a slower rate, pulling down living standards in the process.

Satyajit Das, the Australia-based author of Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives, who has warned about the dangers of credit derivatives, says the recovery will be muted.

Das argues the years of economic growth that preceded this recession were essentially a Ponzi scheme built on a foundation of excessive debt and a failure to properly cost carbon emissions.

[...]

At its root, debt is instant gratification, Das said. During the boom, easy access to credit artificially boosted demand, which led companies to ramp up production.

"So gradually, if this goes on for long enough, we build massive overcapacity, because we just assumed this was going to go on forever," Das said.

Only it didn't go on forever. As in past bubbles, "we discovered we'd bought stuff for excessive prices," Das said. Bad mortgages in the United States sparked a financial crisis that spread across the globe.

Banks around the world still need to deleverage on a massive scale, which will cut the availability of credit and prompt companies and individuals to reduce borrowing and spending, Das said. That, in turn, will eat into growth.

Automakers and other manufacturers that "financialized," or got into the business of financing the things they sell, also face deleveraging, Das said. They also can't get access to money to invest.

"So this is not a financial-sector problem, this is now a real-sector problem," Das said. "And everybody will have to go back to a very old-fashioned way of doing it, so we save our cash flow, save up, build up cash balances and then do something."

Yet, Das is worried world leaders are still missing the key lesson of the global financial crisis: that "there may well be limits to growth."

When I read this article I realized it can be applied to Canada's immigration system because in a matter of speaking Canada's immigration system is akin to a ponzi scheme. By pegging immigration targets at 1% for the purposes of increasing the nation's population Canada will be forever increasing immigration levels to sustain an ever increasing population that was increased by increasing immigration levels. This system is unsustainable becuase it assumes that growth is limitless while ignoring Canada's ability to economically absorb so many immigrants and at increasing levels.

Pegging Canada's immigration levels to a constant percentage of the population is dangerous and it only benefits those who make their living in the immigration industry.

7 comments:

Anonymous said...

We don't need to sustain the current immigration numbers at all. We need much less immigration, in fact, we could do with O% immigration.
Part of the reason that Caucasian Canadians have decreased their birth rates is because of the incredibly nasty quality of the immigrants that have come here. They think that they are wonderful; they don't understand that they are rather uncultured compared to our own population. This has caused many of our own people to cease having children because they do not want to bring their own into a deteriorating and frightening world.
Now, we as a people are going to have to relearn many things about how to cultivate our own culture and be incredibly strong. We are going to have to harden our hearts and dispense with all of these ridiculous notions of human rights that have been used to manipulate our people. Virtually all people are racist; it is a healthy needed perspective which people develop to maintain and protect their own people. A perspective that we have lost and thus we are paying the ultimate price of self destruction.
Keep up the good work

PaxCanadiana said...

We don't need to sustain the current immigration numbers at all. We need much less immigration, in fact, we could do with O% immigration.Demographers have pointed out that if Canada had 0% immigration Canada's population will still grow until the year 2020 and this includes Canadian emigrating. Understandably so this is typically ignored by the mass immigration lobby.

Part of the reason that Caucasian Canadians have decreased their birth rates is because of the incredibly nasty quality of the immigrants that have come here. They think that they are wonderful; they don't understand that they are rather uncultured compared to our own population. This has caused many of our own people to cease having children because they do not want to bring their own into a deteriorating and frightening world.I can't say I wholly agree with you there. The major reason Canadians are having so few children is that they can't afford it. Ironically, those who can either don't or have maybe one because having children gets in the way of their careers and so they have one child more as an accessory to their lives like jewelry or a new pair of shoes (then they import nannies so they don't have to raise their own kids). In any event having kids in Canada is expensive and StatsCan has found more than once that immigrant women have the same number of children as Canadians. It is likely that the children of immigrants will also have as few or no kids themselves and continue the trend. If the Canadian government was serious about population growth it would initiate programs, like tax relief as an example, to encourage Canadians to have kids but so far it has outsourced this task to the developing world.

Virtually all people are racist;I wouldn't say it like that but I do believe people have an inherent attraction to their own. Just walk the streets of Toronto and you'll see social groupings where people of one particular ethnicity are socializing with their own. This is prevalent among Canadian born children of immigrant parents. Go to U of T or York U to see what I mean. Birds of a feather...

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