Australia’s immigration Ponzi scheme
Australia has announced plans to restrict some skilled migrants from living in its largest cities.
Australia has announced plans to restrict some skilled migrants from living in its largest cities in an effort to "ease urban congestion and encourage skilled workers into struggling towns", says the Daily Telegraph. The proposal which critics say may not be legal or enforceable would add visa conditions that prevent some new arrivals from settling in Sydney, Melbourne or Brisbane for up to five years. Last year, 186,000 migrants arrived in Australia, of whom most moved to Sydney or Melbourne. Around 40% would be affected by the new rules.
The issues behind the proposal "bursting cities, uneven migration patterns" are not unique to Australia, says Henry Grabar on Slate. Canada, where "immigrants have long clustered in just a couple of cities", employs province-based visas to draw arrivals to less populated places. But many economists say that sending migrants to low-growth areas makes little sense and that they move to fast-growing regions with high-paying jobs. The evidence suggests cities function better when they are larger, since they are "strengthened by the increasing potential interactions between people and jobs".
Regardless of this proposal, it's clear that Australia needs to overhaul its approach to immigration, says Salvatore Babones in Foreign Policy. Its population has grown by nearly 45% since 1991. "No other major developed country even comes close to that rate."This has boosted growth, but a continued reliance on adding more people "to float the economy and fund government budgets" risks creating "a giant immigration Ponzi scheme".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

-
Steve Webb: The triple lock is there to do a job. I’m not embarrassed or ashamed of itThe triple lock means 13 million pensioners will now get an above-inflation state pension boost in April. While the rising cost of the policy has stirred controversy, Steve Webb, who served as pensions minister when it was introduced, argues the triple lock is vital and should stay. Webb speaks to Kalpana Fitzpatrick on the new episode of MoneyWeek Talks – out now.
-
How retirement pots risk running out 11 years early if inflation remains highPension savers could find their retirement income may not last as long as they anticipated over fears that inflation may not slow down