Migration costs weigh heavily on taxpayers

Migration costs weigh heavily on taxpayers

According to some estimates, the federal government's botched migration policy leaves a gaping several trillion-euro-hole in the German economy.

ECONOMY POLITICS JANUARY 11. 2024 17:44

Thousands of illegal migrants arrive in Germany every week and the Social Democrat-Green-Liberal government is trying to keep them there. Chancellor Olaf Scholz and his rainbow coalition are banking that the migrants will eventually gain employment and start contributing to the economy. But for now, the experience has been that the social welfare system is so beneficial that hundreds of thousands of people see no point in working or studying. This is how, for example, young migrants from Africa and the Middle East have plenty of time on their hands to harass the elderly and women.

People who work today are not working for their own well-being, but for that of others. More than sixty per cent of families on benefits in Germany are not German. The same phenomenon is true in many European countries. We are working to support illegal immigrants. This is the madness that must now be stopped,
said Alice Weidel, co-chair of the Alternative for Germany (AfD) party, in the federal parliament recently.

How much are migrants costing taxpayers?

Economist Bernd Raffelhuschen has calculated how much migration will cost the German population in the long term. According to this calculation, mass migration will at some point put a hole of €5.8 trillion in the economy. The professor from Freiburg dispelled the myth that immigration will eventually save pension and social security system funds.

Raffelhuschen points out that in an ageing German society, there is already a big gap between what employers and employees pay in taxes, social security, pensions and health insurance contributions and what they will receive in the future.

According to the expert, this sustainability gap will grow to €19.2 trillion if Germany continues to admit 300,000 immigrants a year. Even if the permissive migration policy were to be halted now, the gap would still amount to €13.4 trillion. This means that if the German government continues to let migrants into the country en masse, it will cost taxpayers €5.8 trillion in the long term.

„This is how much immigration costs to our current system,”

the professor of economics pointed out.

Migrants’ contribution to the economy remains low on the long run

Current experience shows that migrants need an average of six years to integrate into the German labour market. During this time, they pay hardly any contributions into the social security system. However, even after that initial period, things will hardly get any better, according to a study carried out for the Stiftung Marktwirtschaft (Market Economy Foundation).

This is because due to their low qualifications, they earn significantly less than their German counterparts. As a consequence, they pay less in taxes and contributions. However, they receive the same sick pay, nursing and pension benefits.

Raffelhuschen offered an example to illustrate the problem that the federal government made up of Social Democrats, Greens and Liberals refuses to see.

An asylum seeker arrives in Germany at the age of 26, is rejected after two or three years, but can remain in the country with a „tolerated” status. Then, in the best scenario, he gradually gets his first jobs, obtains qualifications and at the age of 35, he can take up regular employment – if he is willing to – and start paying taxes and contributions. When he retires, he will receive a pension although the contributions he paid during his career will cover only a fraction of his pension benefit. The difference must thus be taken away from the other taxpayers.

„If we carry on as before, we’ll be as stupid as a rock,” the professor remarked.

Huge budget allocation for migrants again this year

As is known, the German government has earmarked nearly €50 billion for migration in the budget, and this excludes extra costs incurred by the social security system. According to current calculations, even if one hundred thousand skilled immigrants arrived per year, Germany would still be making a loss in the coming years. This includes the costs of receiving, housing and registering migrants, as well as the costs of school and out-of-school care for children and young people entering the country, and other social expenditure. By contrast, the government has earmarked mere €10 billion to curb illegal migration. All in all, the budget item for migration is roughly the size of the total defence budget.

 

ECONOMY POLITICS

Tags:

germany, migrants, money