The Economical Impact of Immigrants
According to the Ministry of Immigration and Citizenship, more than 250,000 immigrants from all over the globe landed in Canada in the past year. Immigrants head to Canada due to various reasons. In most of the cases, a better standard of life and the dream of a bright future are their main motives. However, the government imposes strict conditions and requirements to assess the qualifications of every potential immigrant. Every immigrant has to undergo a lengthy process to be eligible to come to Canada. The immigrant should be highly educated in addition to the ability to communicate fluently in either French or English. All of two is to guarantee that the newcomer will be productive and economically beneficial on the Canadian soil. Nevertheless, many immigrants experience various hardships in their journey to find employment after their arrival. Hence, the failure to find work pushes many of them to seek help from the government. This leads many economists to ask about the viability of immigrations for the Canadian economy. On the other hand, other financial experts suggest that newcomers play an important role in strengthening the financial situation of the country, and thus the income of the government. This on-going debate triggers the question about the impact of immigrants on the Canadian economy, and government’s plan to welcome more immigrants.
Immigrants underestimate the challenges that would encounter them in Canada. Many of them come with high expectation about the quality of life and the standard of living; they consider Canada as the wonderland. Yet, the amount of money that the immigrants bring from their countries of origin will not last long. Canada is well known of its welfare system that supports the unemployed, whether citizens or permanent residents, with an allocation of money to keep up with their basic need. Hence, the newcomers will not have any income in their first years except for the assistance provided by the province or the federal government. As the income of the newcomers is too low, they will not be required to pay taxes as the Canadian financial system imposes taxes mainly on the people of high annual income. Paying less taxes and getting assistance raises a lot of questions about the benefits of immigration for the economy especially during an unprecedented financial crisis. A study published this year by professor Herbert Grubel of Simon Fraser University revealed that the 2.5 million immigrants who came to Canada between 1990 and 2002 received 18.3 billion more in government services and benefits than they paid in taxes(9). This study triggers a lot of controversy as the abovementioned assistance that immigrants are receiving is more than what the federal government spends on health care. Hence, the benefit from immigration is increasingly getting exposed to objection and criticism.
Immigrating to a new country is not an easy task. If it is difficult for someone to leave his place for a couple of hours; will not it be challenging for an immigrant to come to a new country which differs significantly on different levels? People who come to Canada will be astounded by the extreme weather which is a major hurdle for somebody who relies on public transportation. Public transpiration is necessary in the first stages for the immigrant since obtaining a driving license is not a simple. The newcomer will not comprehend rapidly the system of transportation such as the direction of buses, and the subway. Moreover, the immigrant encounters difficulties while looking for companies who ask for employees. All these factors make the newcomer live under an immense pressure of finding a decent job for living. However, as soon as the newcomer adapts to the new system in Canada, he will be able to obtain a job which meets his expectations and financial demands. He will cease his assistance from the government, and he will play an important role in the success of his company and, in turn, the economy. As a matter of fact, the person who passed through all the examination to get the entry visa possesses a lot of qualifications which can lead the country to a better future on the financial level.
Immigrants who are employed can contribute to the wellbeing of the economy by paying taxes and buying products and services. As soon as the immigrant finds employment, he starts receiving a decent salary which is compatible with his qualification and the skills he possesses. After the immigrant integrates in the labor force, his financial situation improves. Consequentially, his purchasing power gets better enabling him to buy more products and services. With his high income, he will be required to pay a considerable portion of his money as taxes for the government. David Dyzenhaus mentions, “ The head tax forces all immigrants to pay for the privilege of being able to live in Canada, obtain health care, educate their children, and pay taxes” ( 81).These taxes are exploited by government for the development of the economy and the enhancement of the services. It is true the some immigrants don’t declare their income, but the overwhelming majority is doing so. That is emphasized by the fact that new various taxes imposed on newcomers are prerequisite to obtaining a permanent residence status and citizenship ( Dyzenhaus 81). So, immigrants are required to pay various taxes as they settle and build a new life in Canada. It is true that some immigrants are working “under the table” which means they are getting assistance and working without declaring, but the overall majority is supporting the economy. Therefore, immigrants, as taxpayers, fuel the economical growth of Canada by paying taxes for their purchases and the annual income they earn.
In addition, immigrants contribute to the growth of the gross domestic product (GDP) leading to the development of the economy. Some immigrants come to Canada under the investors and entrepreneurs category. This type of immigrants has to have certain financial qualifications in order to be granted a visa entry to Canada. According to the ministry of immigration and citizenship, the Immigrant Investor Program seeks to attract experienced business people to invest C$400,000 into Canada’s economy. Therefore, these immigrants are in reality valuable as they are bringing capital money from their countries and spending it on the Canadian soil. Not only this money benefits the government which profits from the fees and the taxes, it also provides labor opportunities and contributes to the reduction of unemployment. During the past 12 month, a total net inflow of 111 billion has been recorded in Canada due to foreign investments; this accounts to more than 7 percent of the GDP (Foreign investors flock to Canada). Hence, the influx of money in the economy is a major foundation of the growth of the GDP. It is true that sometimes these companies face financial difficulties and end up declaring bankruptcy. However, these cases are exceptions and are not exclusive to immigrants. As more people get employed, less assistance will be required from the government. As more money is invested in the country, and more employment opportunities being available, the gross domestic product will flourish and, in turn, the economy. Therefore, immigrants, as investors and entrepreneurs, are an important part of the economical development in Canada.
Moreover, Immigrants play an important role in the success of the companies they work in. Most Canadians incorporations are involved in business with companies from foreign countries. One of the most important elements in a profitable and successful business is the ability to communicate and negotiate. Canadian companies encounter some hardship related to languages which are not taught in Canada and used by the companies overseas such as Chinese, Arabic, African languages and many others . Hence, the solution for this serious problem becomes the immigrant. The immigrant has a decent knowledge in his native language as well as a precise comprehension about the mentality of his fellow citizens. This facilitates the work of the Canadian company leading to successful deals and remarkable profits. Keith Head and John Ries, in their research about the relation between immigration and trade creation, state, “Immigrants may expand trade with their country of origin owing to superior knowledge of, or a preferential access to, market opportunities”(1). An important example which ties up with the research of Keith Head and John Ries is the presence of a considerable Chinese population in Vancouver. There, trade and economic links are oriented heavily to Asia (Driedger and Halli 49). Therefore, immigrants play a crucial role in the expansion of the Canadian business, and in turn, the growth of the economy. As immigrants become an important element in the equation of success, many companies start to rely on them to expand the business in further foreign markets. Consequently, the salary of the immigrant boosts up and his annual income becomes significant. That entails more taxes for the government. In some occasions, the immigrant faces some problems in works which affect his effectiveness. This forces the immigrant to leave his job and seeks assistance from the government. However, this case is seldom and doesn’t affect the general reputation of immigrants as pillars of success in their companies. In conclusion, immigration is important as it enhances the development of the economy and the overall financial situation in Canada.
In a rapidly changing world, the challenge is to ensure that our immigration policy serve out the country well. Several major issues face the policy immigration at the beginning of the 21st century. People who love the country and seek its interest claim that the consequences of immigration overwhelm benefits. However, immigration goes to the core of our values and aspirations. The immigrant abstains from welfare assistance as soon as he adapts to the economical system in Canada. By working and engaging in the Canadian labor force, the immigrant contributes to the wellbeing of the economy by paying taxes. Moreover, investors and entrepreneurs who immigrate to Canada enhance the GDP which resembles the prosperity and the improvement in the financial situation. As Canada follows a free trade economy, communication and contact with foreign companies becomes essentials which prioritize the employment of immigrants. Indeed, Immigration presents numerous opportunities, so we must never lose sight of the broader goals we are seeking to achieve, not focus on short term problems that could be resolved. Certainly, Canada should maintain its strategy of welcoming a high number of immigrants annually as immigration is a beneficial policy which holds the keys for Canada’s continuous flourish.
Work Cited
``China in another oilsands deal. `` CIBC NEWS. 20 May, 2010.
<http://www.cbc.ca/money/story/2010/05/13/china-penn-west.html>.
Driedger, Leo, and Shivalingappa S. Halli. Immigrant Canada: Demographic,
Economic, and Social Challenges. Toronto, University of Toronto Press, 1999.
Dyzenhaus ,David, and Mayo Moran. Calling power to Account: Law, Reparations
and the Chinese Canadian Head tax. Toronto, University of Toronto press, 2005.
Grubel, Herbert. The Effects of Mass Immigration on Canadian Living Standards and
Society. Toronto: Fraser institute, 2009.
Head, Keith, and John Ries. `` Immigration and trade creation: economic evidence from
Canada. `` University of British Colombia. Feb.1998
< http://www.jstor.org/pss/136376>.
According to the Ministry of Immigration and Citizenship, more than 250,000 immigrants from all over the globe landed in Canada in the past year. Immigrants head to Canada due to various reasons. In most of the cases, a better standard of life and the dream of a bright future are their main motives. However, the government imposes strict conditions and requirements to assess the qualifications of every potential immigrant. Every immigrant has to undergo a lengthy process to be eligible to come to Canada. The immigrant should be highly educated in addition to the ability to communicate fluently in either French or English. All of two is to guarantee that the newcomer will be productive and economically beneficial on the Canadian soil. Nevertheless, many immigrants experience various hardships in their journey to find employment after their arrival. Hence, the failure to find work pushes many of them to seek help from the government. This leads many economists to ask about the viability of immigrations for the Canadian economy. On the other hand, other financial experts suggest that newcomers play an important role in strengthening the financial situation of the country, and thus the income of the government. This on-going debate triggers the question about the impact of immigrants on the Canadian economy, and government’s plan to welcome more immigrants.
Immigrants underestimate the challenges that would encounter them in Canada. Many of them come with high expectation about the quality of life and the standard of living; they consider Canada as the wonderland. Yet, the amount of money that the immigrants bring from their countries of origin will not last long. Canada is well known of its welfare system that supports the unemployed, whether citizens or permanent residents, with an allocation of money to keep up with their basic need. Hence, the newcomers will not have any income in their first years except for the assistance provided by the province or the federal government. As the income of the newcomers is too low, they will not be required to pay taxes as the Canadian financial system imposes taxes mainly on the people of high annual income. Paying less taxes and getting assistance raises a lot of questions about the benefits of immigration for the economy especially during an unprecedented financial crisis. A study published this year by professor Herbert Grubel of Simon Fraser University revealed that the 2.5 million immigrants who came to Canada between 1990 and 2002 received 18.3 billion more in government services and benefits than they paid in taxes(9). This study triggers a lot of controversy as the abovementioned assistance that immigrants are receiving is more than what the federal government spends on health care. Hence, the benefit from immigration is increasingly getting exposed to objection and criticism.
Immigrating to a new country is not an easy task. If it is difficult for someone to leave his place for a couple of hours; will not it be challenging for an immigrant to come to a new country which differs significantly on different levels? People who come to Canada will be astounded by the extreme weather which is a major hurdle for somebody who relies on public transportation. Public transpiration is necessary in the first stages for the immigrant since obtaining a driving license is not a simple. The newcomer will not comprehend rapidly the system of transportation such as the direction of buses, and the subway. Moreover, the immigrant encounters difficulties while looking for companies who ask for employees. All these factors make the newcomer live under an immense pressure of finding a decent job for living. However, as soon as the newcomer adapts to the new system in Canada, he will be able to obtain a job which meets his expectations and financial demands. He will cease his assistance from the government, and he will play an important role in the success of his company and, in turn, the economy. As a matter of fact, the person who passed through all the examination to get the entry visa possesses a lot of qualifications which can lead the country to a better future on the financial level.
Immigrants who are employed can contribute to the wellbeing of the economy by paying taxes and buying products and services. As soon as the immigrant finds employment, he starts receiving a decent salary which is compatible with his qualification and the skills he possesses. After the immigrant integrates in the labor force, his financial situation improves. Consequentially, his purchasing power gets better enabling him to buy more products and services. With his high income, he will be required to pay a considerable portion of his money as taxes for the government. David Dyzenhaus mentions, “ The head tax forces all immigrants to pay for the privilege of being able to live in Canada, obtain health care, educate their children, and pay taxes” ( 81).These taxes are exploited by government for the development of the economy and the enhancement of the services. It is true the some immigrants don’t declare their income, but the overwhelming majority is doing so. That is emphasized by the fact that new various taxes imposed on newcomers are prerequisite to obtaining a permanent residence status and citizenship ( Dyzenhaus 81). So, immigrants are required to pay various taxes as they settle and build a new life in Canada. It is true that some immigrants are working “under the table” which means they are getting assistance and working without declaring, but the overall majority is supporting the economy. Therefore, immigrants, as taxpayers, fuel the economical growth of Canada by paying taxes for their purchases and the annual income they earn.
In addition, immigrants contribute to the growth of the gross domestic product (GDP) leading to the development of the economy. Some immigrants come to Canada under the investors and entrepreneurs category. This type of immigrants has to have certain financial qualifications in order to be granted a visa entry to Canada. According to the ministry of immigration and citizenship, the Immigrant Investor Program seeks to attract experienced business people to invest C$400,000 into Canada’s economy. Therefore, these immigrants are in reality valuable as they are bringing capital money from their countries and spending it on the Canadian soil. Not only this money benefits the government which profits from the fees and the taxes, it also provides labor opportunities and contributes to the reduction of unemployment. During the past 12 month, a total net inflow of 111 billion has been recorded in Canada due to foreign investments; this accounts to more than 7 percent of the GDP (Foreign investors flock to Canada). Hence, the influx of money in the economy is a major foundation of the growth of the GDP. It is true that sometimes these companies face financial difficulties and end up declaring bankruptcy. However, these cases are exceptions and are not exclusive to immigrants. As more people get employed, less assistance will be required from the government. As more money is invested in the country, and more employment opportunities being available, the gross domestic product will flourish and, in turn, the economy. Therefore, immigrants, as investors and entrepreneurs, are an important part of the economical development in Canada.
Moreover, Immigrants play an important role in the success of the companies they work in. Most Canadians incorporations are involved in business with companies from foreign countries. One of the most important elements in a profitable and successful business is the ability to communicate and negotiate. Canadian companies encounter some hardship related to languages which are not taught in Canada and used by the companies overseas such as Chinese, Arabic, African languages and many others . Hence, the solution for this serious problem becomes the immigrant. The immigrant has a decent knowledge in his native language as well as a precise comprehension about the mentality of his fellow citizens. This facilitates the work of the Canadian company leading to successful deals and remarkable profits. Keith Head and John Ries, in their research about the relation between immigration and trade creation, state, “Immigrants may expand trade with their country of origin owing to superior knowledge of, or a preferential access to, market opportunities”(1). An important example which ties up with the research of Keith Head and John Ries is the presence of a considerable Chinese population in Vancouver. There, trade and economic links are oriented heavily to Asia (Driedger and Halli 49). Therefore, immigrants play a crucial role in the expansion of the Canadian business, and in turn, the growth of the economy. As immigrants become an important element in the equation of success, many companies start to rely on them to expand the business in further foreign markets. Consequently, the salary of the immigrant boosts up and his annual income becomes significant. That entails more taxes for the government. In some occasions, the immigrant faces some problems in works which affect his effectiveness. This forces the immigrant to leave his job and seeks assistance from the government. However, this case is seldom and doesn’t affect the general reputation of immigrants as pillars of success in their companies. In conclusion, immigration is important as it enhances the development of the economy and the overall financial situation in Canada.
In a rapidly changing world, the challenge is to ensure that our immigration policy serve out the country well. Several major issues face the policy immigration at the beginning of the 21st century. People who love the country and seek its interest claim that the consequences of immigration overwhelm benefits. However, immigration goes to the core of our values and aspirations. The immigrant abstains from welfare assistance as soon as he adapts to the economical system in Canada. By working and engaging in the Canadian labor force, the immigrant contributes to the wellbeing of the economy by paying taxes. Moreover, investors and entrepreneurs who immigrate to Canada enhance the GDP which resembles the prosperity and the improvement in the financial situation. As Canada follows a free trade economy, communication and contact with foreign companies becomes essentials which prioritize the employment of immigrants. Indeed, Immigration presents numerous opportunities, so we must never lose sight of the broader goals we are seeking to achieve, not focus on short term problems that could be resolved. Certainly, Canada should maintain its strategy of welcoming a high number of immigrants annually as immigration is a beneficial policy which holds the keys for Canada’s continuous flourish.
Work Cited
``China in another oilsands deal. `` CIBC NEWS. 20 May, 2010.
<http://www.cbc.ca/money/story/2010/05/13/china-penn-west.html>.
Driedger, Leo, and Shivalingappa S. Halli. Immigrant Canada: Demographic,
Economic, and Social Challenges. Toronto, University of Toronto Press, 1999.
Dyzenhaus ,David, and Mayo Moran. Calling power to Account: Law, Reparations
and the Chinese Canadian Head tax. Toronto, University of Toronto press, 2005.
Grubel, Herbert. The Effects of Mass Immigration on Canadian Living Standards and
Society. Toronto: Fraser institute, 2009.
Head, Keith, and John Ries. `` Immigration and trade creation: economic evidence from
Canada. `` University of British Colombia. Feb.1998
< http://www.jstor.org/pss/136376>.