Migration and Human Rights (40): The Economic Efficiency Argument for Open Borders

Immigration restrictions are often defended on the basis of economic arguments. I’ve repeated often enough why these arguments won’t work (see here and here for example). What I want to do now is spell out one of the strongest economic arguments against immigration restrictions and in favor of open borders, and I mean completely open borders (which doesn’t mean that completely open borders are necessarily the right thing to do; there may be other arguments against completely open borders that override the economic ones in favor).

Restraining the movement of people between national territories creates the same inefficiencies as restraining the movement of goods and services. Free international trade in goods and services increases overall wealth and prosperity, as I’ve argued here and here. Trade enhances specialization and the use of comparative advantage. It’s easier to grow bananas in the tropics and then trade them, than to make every country grow its own bananas. Similarly, free movement of people makes it possible to make better use of people’s talents. Just as it was an inefficient waste to relegate women to the household – not to mention a gross violation of their rights – we are now depriving the world of good workers in all fields of life because of immigration restrictions. Potential immigrants have a hard time going to other countries in order to develop their talents, and can’t move freely around the world to use their talents. Those of you who worry about the effects of a so-called brain drain should read this.

More on open borders is here.

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