Introduction
The article, What will happen to Japan if immigration policies progress? Is it true that accepting foreigners will affect economic growth? (Nikkan SPA 2024/12/18) discusses how accepting immigrants leads to increased social security costs.
Whether or not accepting immigrants leads to an increase in social security is a complex issue that depends on social, economic, and cultural factors. In this paper, we will consider both sides of the argument for and against accepting immigrants from the perspective of social security, and discuss the issue with examples from overseas.
Supportive position
1.Eliminating labor shortages and expanding social security revenue sources
In many countries where the birthrate is declining and the population is aging, the decline in the working population is becoming a serious problem. Immigrants have the potential to increase tax revenues by increasing the labor force and revitalizing economic activity. For example, in Germany, the acceptance of refugees since 2015 has diversified the labor market and increased the labor supply, especially among young people. This is expected to improve the sustainability of the social security system in the long term.
2.Meeting demand in the medical and nursing care fields
Ageing populations in countries create an increasing demand for health and long-term care services, and immigrants play a key role in these areas. In Canada, immigrants are widely employed in health and long-term care settings, helping to maintain the well-being of local communities. The labour provided by immigrants directly supports social security services.
3.The economic contribution of young immigrants
Since many immigrants are relatively young, they are expected to function as “supporters” of the social security system. For example, in Sweden, immigrants participate in economic activities and support national finances through contributions to pensions and health insurance. According to a UN report, the proportion of immigrants who contribute to the social security system tends to increase over time.
4.The economic benefits of a multicultural society
The formation of a multicultural society through immigration promotes innovation and the creation of new businesses. This is thought to boost economic growth and contribute to expanding the financial resources of the social security system. In Silicon Valley in the United States, immigrant entrepreneurs play a major role in economic development, leading to increased tax revenues.
Opposing position
1.Possibility of increased social security costs
It has also been pointed out that immigration may lead to an increase in social security costs. In particular, when there are many immigrants working as low-wage workers, there are cases where social security expenditures such as medical expenses and welfare assistance exceed the amount of tax paid. In the United States, a high proportion of low-income immigrants use Medicaid (public health insurance) and food stamps (food assistance), which places a burden on the national finances.
2.Excessive spending on immigrant communities
In areas with a high concentration of immigrants, the demand for public services such as education, medical care, and housing support can suddenly increase, putting pressure on local government budgets. In the UK, there are cases where a sudden increase in immigrants has strained public services in some areas, leading to increased social dissatisfaction. This can lead to social conflict and hinder the effectiveness of policies.
3.Difficulties in social integration
If immigrants are not integrated into the host society, this can lead to increased social costs in the long term. For example, in France, parts of immigrant communities have become economically and socially isolated, leading to higher unemployment and crime rates. In such situations, there is concern that immigrants will not be able to fulfill their role as taxpayers and will become dependent on the social security system.
4.Short-term financial burden
In the early stages of accepting immigrants, large investments are required in education, language support, vocational training, etc. These costs are not immediately recouped and may place a temporary burden on national finances. In Denmark, it has been reported that the initial support costs for immigrants have increased, putting pressure on social security finances.
Conclusion
It is difficult to say for sure whether the influx of immigrants leads to increased social security benefits. The impact depends on many factors, including the design of immigration policies, the state of the labor market, and the degree of social integration of immigrants.
Those in favor of immigration emphasize the possibility that it could alleviate labor shortages and increase tax revenue to support social security systems, while those opposed point out the risk that immigration will increase social security costs and cause a short-term financial burden.
Ultimately, the key is how well immigration policies are designed and how well they promote social integration. It is important to accept immigrants with a long-term perspective and promote their economic and social adaptation, as seen in successful examples such as Sweden and Canada.