Australia under the Albo government has been taking a quick fix to increasing GDP by mass immigration, regardless of the social costs to local Australians, which has produced a crippling accommodation crisis. However, despite the lip service given to GDP increase, according to research by the Institute of Public Affairs (IPA), real productivity has been severely impacted upon by the mass immigration drug, so that it has costed Australians tens of thousands of dollars. Thus, according to the IPA "since the year 2000, Australians are $80,038 (US$53,771) worse off due to an increased reliance on population growth. This figure equates to just under a year's income for most Australians, with the national average salary sitting at about $90,800 per annum." As the report notes: "Australian governments have become addicted to migration-driven economic growth. This has severe consequences for a nation struggling with unprecedented housing and cost-of-living challenges. These challenges will become more pronounced if migration intake is increased further."
Indeed, the mere fact that GDP figures can be shown to increase by a mass immigration invasion does not prove much, since GDP has been widely recognised as a flawed measure of the economic health of a society, and makes costs, like pollution, benefits. And, it does not measure nation building and productivity issues, and taking in hundreds of thousands of foreign students who buy consumer goods made overseas anyway, is an illusion of mainstream economics. It will not produce the technology needs to deal with the threat of war with China that is fast coming up.
"Australia's over-reliance on immigration at the expense of real productivity growth is costing everyday Aussies tens of thousands, says free-market think tank the Institute of Public Affairs (IPA).
According to an IPA research report released earlier this week, since the year 2000, Australians are $80,038 (US$53,771) worse off due to an increased reliance on population growth.
This figure equates to just under a year's income for most Australians, with the national average salary sitting at about $90,800 per annum.
IPA researchers modelled a scenario where population growth grew organically rather than with the assistance of immigration since the year 2000.
In this scenario, GDP growth was maintained because in the researchers' view it's likely productivity would have kept increasing as it did in the late 1990s.
In essence, this means Australians would be wealthier on a per capita basis under this scenario given that the population would be 7.9 percent lower.
account for factors like inflation or the number of people in the country, so it does not directly reflect changes in personal wealth like GDP per capita does.
The report also found that population growth, which in Australia is overwhelmingly driven by immigration, accounted for approximately 85 percent of economic growth in 2023, the highest year on record.
In fact, the report's figures conclude an upward trend in the contribution of migration to economic growth.
Between 1990 and 1999, population growth accounted for approximately one-third of total economic growth. Between 2010 and 2019, that figure rose to two-thirds.
The IPA, in its conclusions, warned of ramifications should this trend continue.
"Australian governments have become addicted to migration-driven economic growth. This has severe consequences for a nation struggling with unprecedented housing and cost-of-living challenges. These challenges will become more pronounced if migration intake is increased further," the report reads.
It also touched on what it believes to be a fundamental failure of governments to create a national economic composition conducive to bona fide wealth creation and growth.
"The government's failure to create an environment that fosters investment and productivity has created an economy that has grown dependent on population growth."
A Big AustraliaAustralia's population has grown exponentially in the past few years as a result of expansive migration policies implemented by the Albanese Government.
According to the Australian Bureau of Statistics (ABS), Australia's population grew by 2.2 percent to 26.5 million people between March 2022 and March 2023.
Thirteen months after international borders were opened in December 2021, net overseas migration—immigrants minus emigrants—accounted for 81 percent of population growth or an additional 454,400 people.
As of the latest ABS population statistics release at the end of June, the Australian population had further increased by over 100,000 people to 26.6 million in just 3 months.
The annual natural increase reported was 106,100 while net overseas migration was 518,100.
Australia's national unemployment rate has risen to an 18-month high of 3.9 percent amid what seems to be an economic downturn and loosening labour market. A loose labour market is where there are less job openings than jobseekers.
The Australian economy has in recent months begun to transition from a tight labour market to a loose labour market as a result of faltering business sentiment and increased rates of migration.
Immigration has also been placing upward pressure on Australian property prices in a pre-existing housing affordability crisis.
AMP Deputy Chief Economist Diana Mousina has this week voiced her concerns about the large disparity between population growth and the construction of new homes.
"The high pace of immigration is not compatible with the level of housing supply that we have in this country. We're just not building enough homes to keep up with our population growth," she said.
"If we had enough housing supply and infrastructure that went along with very high levels of immigration, then it could become sustainable. But what we're seeing is that there's too much pressure on the rental market, and that's adding to inflation.
Immigration has also been placing upward pressure on Australian property prices in a pre-existing housing affordability crisis.
AMP Deputy Chief Economist Diana Mousina has this week voiced her concerns about the large disparity between population growth and the construction of new homes.
"The high pace of immigration is not compatible with the level of housing supply that we have in this country. We're just not building enough homes to keep up with our population growth," she said.
"If we had enough housing supply and infrastructure that went along with very high levels of immigration, then it could become sustainable. But what we're seeing is that there's too much pressure on the rental market, and that's adding to inflation."