The View | The evidence is clear: anti-immigration is bad for economic growth
Jason Furman says the economic case for being open to immigrants is indisputable, particularly in ageing societies. Advanced societies now grappling with the rise of populist nationalism must work towards an inclusive vision – or pay the economic price
One of the central challenges facing the world’s advanced economies is slowing growth. Over the past decade, growth rates in the advanced economies have averaged 1.2 per cent, down from an average of 3.1 per cent during the previous 25 years.
History shows that slower economic growth can make societies less generous, less tolerant and less inclusive. So, it stands to reason that the past decade of sluggish growth has contributed to the surge of a damaging form of populist nationalism that is taking hold in a growing number of countries.
As in the darker decades of the 20th century, today’s nationalism takes the form of heightened opposition to immigration and – to a lesser degree – free trade. Making matters worse, today’s toxic nationalism will exacerbate the economic slowdown that fuelled its emergence.
Turning this vicious circle into a virtuous one – in which increased openness drives faster growth – will depend, at least in part, on making immigration more compatible with inclusive forms of nationalism.