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You cannot simultaneously have mass immigration and a welfare state.

Riley Donovan

12,529 subscribers

65,563 次观看 • 2 个月前 •via X (Twitter)

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Incentives explain outcomes. Milton Friedman observed that you cannot simultaneously have free immigration and a welfare state. America’s earlier waves of immigration succeeded so well because, prior to 1914, the country maintained open borders without a welfare system. Immigrants arrived to work, support themselves and their families, and build new lives. Those who couldn’t succeed typically returned home. This environment naturally selected for self-reliant individuals and fueled tremendous economic growth. In contrast, today’s expansive welfare state, offering healthcare, education, housing assistance, and cash transfers, fundamentally alters the incentives. When immigrants, whether legal or illegal, can immediately access these benefits, it becomes possible for some to arrive and function as net fiscal drains rather than contributors. Friedman therefore opposed the unsustainable pairing of open borders with generous entitlements. So it’s not paradoxical why one would support pre-1914 immigration but oppose its later version. They are very different phenomena. Either can work on its own, but together they generate higher taxes, social friction, and long-term strain.

Incentives explain outcomes. Milton Friedman observed that you cannot simultaneously have free immigration and a welfare state. America’s earlier waves of immigration succeeded so well because, prior to 1914, the country maintained open borders without a welfare system. Immigrants arrived to work, support themselves and their families, and build new lives. Those who couldn’t succeed typically returned home. This environment naturally selected for self-reliant individuals and fueled tremendous economic growth. In contrast, today’s expansive welfare state, offering healthcare, education, housing assistance, and cash transfers, fundamentally alters the incentives. When immigrants, whether legal or illegal, can immediately access these benefits, it becomes possible for some to arrive and function as net fiscal drains rather than contributors. Friedman therefore opposed the unsustainable pairing of open borders with generous entitlements. So it’s not paradoxical why one would support pre-1914 immigration but oppose its later version. They are very different phenomena. Either can work on its own, but together they generate higher taxes, social friction, and long-term strain.

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