Elucidations

Episode 137: Bryan Caplan discusses open borders

10 snips
Jan 2, 2022
Bryan Caplan explores what a world with far fewer immigration restrictions might look like, from the economic effects of migration to the moral and political arguments for letting people move freely. The conversation ranges from productivity and life in poorer countries to housing, voting, welfare, and whether nations have a right to keep people out.
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INSIGHT

Huge Global Gains From Migration

  • Migrating workers from poor to rich countries can raise their earnings ~10x and roughly double gross world product in the long run.
  • Michael Clemens' estimates multiply large per-person productivity gains by >1 billion potential migrants.
INSIGHT

Why The Same Worker Produces More Abroad

  • Productivity jumps because immigrants access better capital, management, institutions and infrastructure in rich countries.
  • Nicholas Bloom's management-quality research shows chronic mismanagement in poor-country firms is a major productivity gap.
INSIGHT

How Service Jobs Multiply Value

  • Services are productive because they save time, and saving time for a highly productive person multiplies value.
  • Example: shining shoes for high-productivity individuals frees valuable hours and raises net social output.
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