James O'Brien 10am - 1pm
Maajid Explains To Leaver Why Immigration Does Not Reduce Wages
30 September 2017, 15:26
"All the expert economists are saying the opposite to your simplistic analogy of supply and demand."
Speaking to Maajid Nawaz today, a caller said immigration's impact on wages was simply a case of supply and demand.
He used a wheat harvest and the price of bread as an analogy to illustrate his point. Maajid felt this example was not analogous to a decline in real term wages, citing the majority of economic experts who point to other factors - particularly the 2008 economic crash.
He said: "In your simplistic example you got your analogy wrong. Can I speak to you a bit about that?
"Wheat and bread isn't analogous to workers coming to the country and that being the cause of the depreciation of wages.
"The Economic Centre at LSE's Centre of Policy and Research, have studied precisely this only about a month and a half ago.
"They came to the conclusion that one of the biggest causes of wage depreciation was in fact the economic crash. It's the bankers that have caused your suffering, not the immigrants.
"On top of that the tax payer paid for them to get off scot-free. They're the ones who got away with it and we want to blame the immigrants.
"Yes, an over-supply causes a drop in price, but that's assuming all other things are equal.
"If an over-supply in labour comes to this country while the economy is growing and there is an increase in the jobs needed.
"All that's going to happen is the people with English as a first language will automatically end up in higher-paying jobs where there is more demand for English as a native language, while the immigrants end up working in the jobs they've left. Wages won't depreciate, the economy grow.
"What stopped it this time was the economic crash, not immigration."
Watch the economics lecture above.