Immigration can sometimes have a serious effect on a nations economy. Thankfully, the impact it has on the UK is minimal, and even has a small positive effect on it.
Prof. Christian Dustmann of UCL’s Department of Economics said: “Economic theory shows us that immigration can provide a net boost to wages if there is a difference in the skills offered by native and immigrant workers. However, across the whole spectrum of wages it is impossible for everybody to benefit. Some workers will see a gain, others a loss.”
With that the UK is able to experience a benefit from immigration for the middle to upper class, but it does hurt the lower class because of the increase in people who have the same set of skills. Companies are able to hire cheaper workers and the native lower class citizens are negatively affected.
While the overall macroeconomic impact is a positive one, there are still many lower class workers who are hurt by this increase in immigration.
Thursday, April 12, 2007
Tuesday, March 13, 2007
UK Outsourcing
The UK has actually a very small problem with outsourcing. According to ZD.net the UK has not lost jobs to the main countries that receive the outsourcing from the developed nations. There is much less of a change in the UK compared to the other major countries.
Overall, though it is few, the UK’s main spot to outsource jobs are to the US and the Ukraine. They would like to outsource to these countries if anywhere because companies are finding that the cost/benefit ratio of outsourcing is actually decreasing and becoming negative. With most of the public the general trend of customer service and the quality are decreasing, which is not saving the companies money and they should just stay on home shores. That is why when jobs are outsourced the UK is going to countries they are picking ones that are more efficient like the US. Japan has shown the same trend as the UK that if they are going to outsource it is going to be to a place where the quality of the product or service is going to be of the very highest and that is at the US. Outsourcing is becoming much more ineffective at saving the companies money, so I think in time the amount of outsourcing will actually decrease much more, rather than increase.
Overall, though it is few, the UK’s main spot to outsource jobs are to the US and the Ukraine. They would like to outsource to these countries if anywhere because companies are finding that the cost/benefit ratio of outsourcing is actually decreasing and becoming negative. With most of the public the general trend of customer service and the quality are decreasing, which is not saving the companies money and they should just stay on home shores. That is why when jobs are outsourced the UK is going to countries they are picking ones that are more efficient like the US. Japan has shown the same trend as the UK that if they are going to outsource it is going to be to a place where the quality of the product or service is going to be of the very highest and that is at the US. Outsourcing is becoming much more ineffective at saving the companies money, so I think in time the amount of outsourcing will actually decrease much more, rather than increase.
Tuesday, February 6, 2007
England has one of the larger economies in the world. Also, they subsidize many of their products and services for the other economies in the UK. The Welsh are the biggest receiver of these benefits. The general feeling of the Welsh by the world is that they want to pull out of the UK and declare their own independence. This wouldn’t make any sense because of the financial subsidies that they get from the richer people in England. Since the Welsh’s public spending is about 18% higher than that of the England they would not be able to sustain the stable economy that they have now, because of the lack of finances that they would have if they pulled out of the UK.
The supporters of the policy are the Welsh consumers and merchants who understand their situation. They get lower prices and more money to spend on almost all of the products and services. The government is also a supporter of this because it stops them from leaving the UK, and allows them to still collect taxes from them. Also, the policy of the government taking care of the people less fortunate is supported by most of Europe. In my opinion, some people against the policy would be the merchants and the richer people in the England who would lose out of some money. The merchants have more to compete with, and the rich have to pay much higher taxes.
I don’t agree with this much subsidizing of products and services to any particular area, because to me it seems that this is just other way to have more of an equal distribution of income, by making the rich pay so much more to an area that wouldn’t even benefit them.
The supporters of the policy are the Welsh consumers and merchants who understand their situation. They get lower prices and more money to spend on almost all of the products and services. The government is also a supporter of this because it stops them from leaving the UK, and allows them to still collect taxes from them. Also, the policy of the government taking care of the people less fortunate is supported by most of Europe. In my opinion, some people against the policy would be the merchants and the richer people in the England who would lose out of some money. The merchants have more to compete with, and the rich have to pay much higher taxes.
I don’t agree with this much subsidizing of products and services to any particular area, because to me it seems that this is just other way to have more of an equal distribution of income, by making the rich pay so much more to an area that wouldn’t even benefit them.
Wednesday, January 31, 2007
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