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Do Anti-immigrant Laws Really Help the Economy?

The argument most frequently used by those who promote antiimmigrant laws is the economy. People such as Donald Trump’s followers believe that immigrants take jobs, use taxpayer money, and therefore are a drain on the economy. Is this true? How would a country’s economy be affected if immigration were drastically reduced? Japan’s recent economic history can answer these questions.

Japanese economic miracle

After the devastation of World War II, during which it suffered the detonation of two atomic bombs, Japan began a slow recovery phase.

In the 1970s, Japan began to surprise the world with its technological innovations. In the 1980s, people talked about the “Japanese economic miracle,” and companies such as Nintendo, Toshiba, Sony, and Toyota were synonymous with technological innovation and quality.

Japan closes its doors to immigration

At the peak of its growth, Japan began to gradually tighten its immigration laws, and starting in the 1990s the number of immigrants fell to historically low levels.

Today Japan has the lowest immigration rate in the developed world (1.6%). Did its economy improve? Curiously, in the 1990s this country experienced stagnation in its economy.

There are two ways to migrate to Japan: obtaining a professional visa that includes a work contract or marrying a Japanese person. If a company wants to hire a foreigner, the person must have a high-level university degree in a specific area that is practically impossible to find in the Japanese labor market.

The problems begin

Faced with the difficulty of migrating to Japan and the resurgence of anti-immigrant laws in 2009 and 2012, this country began to experience

Presidente Alvaro Gurdián

Directora

Hilda H. Gurdián

Vice Presidente Alvaro Gurdián Jr.

Editor Diego Barahona A. dbarahona@lanoticia.com

Reporteros

Kayla Young

Eileen Rodríguez

Yuliana Montiel

Jeralí Giménez

Jonathan Hernandez

Apolo Valdés

Emmanuel Gutierrez

Daniel González

Karole Pelcastre Avilez

Escritores/Colaboradores

Mae Lynn Reyes-Rodríguez, Ph.D.

Dr. Mike Walden

Dr. Carlos Cruz

Patricia Huerta

Gustavo Cruz

Marcos Andón

Ernesto Maradiaga

Fotos/Video

Rodrigo Gaudenzi

José Félix Sánchez

Traducción Kendal Walters

Ventas

Rosario Herrera Gerente de Ventas Sector Latino 704-965-9443 rherrera@lanoticia.com

Directora de Arte

María E. Benton

Diseño Douglas Herrera

Diego Barahona A.

a worker shortage, and with it came economic consequences. In January of this year, Japan’s industrial output fell by 6.6%. But there is a more serious problem.

Japan has the oldest population in the world, with an average life expectancy of 83.8 years old. In contrast, it has one of the lowest birth rates in the world, 1.46 children per woman of childbearing age. The population growth rate is -0.1%. In 2016, its population decreased by 315,000 people. The result: few young people are joining the labor force, so there is not enough money to cover social services. Thus, taxes and the fiscal deficit have gone up. Japan is more in debt than any other country in the world. Its debt is equivalent to twice its Gross Domestic Product.

Immigrants and innovation

Additionally, immigrants create companies at a rate two to three times higher than the native population. This is partially because immigrants are used to the idea of taking risks, and their process of adaptation to a new culture generates innovation.

Do you know large U.S. companies created in the last 20 years? Names such as Amazon, Google, Facebook, Uber, WhatsApp, and YouTube might come to mind (many of them founded by immigrants).

Now, can you name five big Japanese companies created in the 21st century?

Japan is the country with the lowest innovation rate in the world. Only 7% of its population endeavors to start a business. The average Japanese dreams of working in a large corporation, although they have the longest hours and shortest vacations of the countries that make up the Organization for Economic Co-operation and Development (OECD).

Numbers don’t lie; immigrants should not be seen as a problem that has to be stopped, but as an opportunity to grow.

Director de Informática Alvaro Gurdián Jr.

Administración

Alejandrina Rosales

Director de Circulación Alvaro Gurdián

Distribución

Leopoldo Rodríguez

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