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Budget Proposal Regarding the Economic Effects of Immigration in Canada Written by Thomas Toth

Executive Summary This brief executes an attempt to recommend a federal budget to the finance minister of Canada in relation to the macroeconomic implications of immigration. The following information contains various solutions to this specific issue in order to inform the appropriate allocation of money and services. While there are many concepts in economics, the suggestions addressed below can help influence a healthier, more efficient budget that applies leaniantly to immigration. Introduction Immigration in Canada has been going on for years, specifically in 1869 when the Immgration Act was created. Ever since then our economy has had to adapt to the significant numbers of refugees entering the country from across the seas. Immigration has an effect on GDP per capita, the wages of the domestic-born, and the fiscal balance due to the statement of over-population 1. I would like to expand on these three topics, digging deeper into the concepts of economic welfare, entrepreneurs, and stagflation. I advise that you, as minister of finance, provide our country with a budget that supports the well-being of immigrants, allows foreign entrepreneurs to kick-start their business ideas, and influences stagflation to remain non-existent.

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 https://www.canada.ca/en/immigration-refugees -citizenship/corporate/reports-statistics/researc h/economic-social-objectives-immigration-evide nce-that-informs-immigration-levels-education.h tml

Economic Welfare A relevant issue in today’s society, especially within immigration, is the standard of our economic welfare. Having such broad implications in our economy, economic welfare consists of our well-being in the categories of housing, real income, job satisfaction, employment prospects, cost of living, education, life expectancy/health care, happiness, environment issues, and our leisure time. While immigrants are considered very fortunate to live in Canada, as we all, their restrictions become more severe when it comes to each section of economic welfare above. To increase our nation’s total economic welfare as an average, we need to aggregate or add up all of the individual levels of happiness in that country 2. Immigration must come first when attempting to increase this statistic because they are roughly 21.5% of our population and continue to grow our economy. Refugees consistently fill labour gaps in our productivity system, allowing full efficiency to occur in the labour force. As minister of finance, it is your duty to provide our country and each resident an equal chance to a happy life. If you provide Canadians with more jobs, better health care, and safe housing at reasonable pricings, I know that you will be able to achieve that goal. Recommendation: I advise you to lower entry level-housing prices for rent and increase the budget for language education to ensure that immigrants increase their economic welfare. This will help new families to budget more efficiently for food and necessities.   2

Dinner Party Economics, Chapter 3, Page 18

Entrepreneurs Another factor that should be taken in for account is the depth of entrepreneurs that come to Canada from foreign countries. The issue at hand involves the funds needed for immigrants to build up their businesses in order to secure a sufficient amount of income that fulfills their needs. In 2010, about 5.8% of immigrants who had been in Canada for 10 to 30 years owned a private incorporated company (with employees) compared to 4.8% of the Canadian-born 3. This statistic goes to show that most of our entrepreneurs are new Canadians and need more support in caring for their professions. The job that governments have when it comes to entrepreneurs is to provide them with the means to get their ideas from a thought to a reality. Unfortunately, sometimes the government can put up boundaries that limit entrepreneurs from doing what they love to do. In this sense, they will initiate incomprehensible processes for business owners to legally operate. 4With your power, you can help lean towards more affordable ways for entrepreneurs to succeed, ultimately avoiding any obstacles that may prohibit them from work. Recommendation: Provide new immigrants with substantial grants, loans, and disbursements to encourage small business innovations and support our new Canadians. Stagflation A final term used throughout macroeconomics that is concerned with immigrants and our economic growth as a country is stagflation. This stunt in the

economy happens when inflation and unemployment rise at the same time that the economy slows to a recession 5. Though we have not experienced stagflation since the early 1970s, COVID-19 has struck our world with similar traits. When it comes to immigration and rising inflation rates, the two are closely linked. Illegal immigrants caused misconceptions in the calculations of productivity when they divided it by the number of workers. This caused an underlying truth about real inflation rates which then spiked them 6. Governments are consistently warned throughout recessions to reduce the amount of money punched into the economy as it will most certainly revive another stagflation. In this case, immigrants must be continued to be monitored when entering and leaving the country to ensure that inflation levels are controlled. Recommendation: To avoid stagflation in the future, budget for more accurate technology and researchers to watch over rising inflation rates and unemployment. Locating illegal immigration will allow our economy to continue to excel as we move past COVID-19. Conclusion Now that there is a concrete standpoint on what needs to be done in the macroeconomic environment for immigration, you can finally formulate a federal budget to maintain a healthy and happy economy. By lowering housing prices and health care taxes, immigrants can maximize their economic welfare. In terms of entrepreneurship, immigrants will have more support in kick 5

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 https://www.statcan.gc.ca/eng/blog/cs/immigran t-entrepreneurs 4 Dinner Party Economics, Chapter 8, Page 92

Dinner Party Economics, Chapter 11, Page 161  https://www.seattlepi.com/local/opinion/article/ How-immigration-inflation-are-linked-1265264. php

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starting businesses with extra grants and loans. Lastly, stagflation will be controlled by monitoring and investing in resources that investigate illegal immigration that increases inflation rates. As the minister of finance, I have faith that you will be encouraged to use these three concepts and solutions to enhance your decisions when it comes to our economy. The end result will aid not only our immigrants, but our entire population as a whole.  ...