Economist Bryan Caplan, in responding to calls for more to be done by governments for the world’s poor, writes the following:
Isn’t the entire problem that the world’s poor have little of value to sell on the world market? The answer, surprisingly, is no. The world’s poor have a very valuable good to sell: their labor. Though Third World workers often earn a dollar or two a day, even unskilled labor is worth $10-$15,000 per year on the world market.
There’s just one problem: First World governments’ immigration policies effectively forbid international trade in labor. The world’s poor cannot legally work in a First World country without that government’s permission. For most current residents of the Third World, this permission is almost impossible to obtain. If you’re an unskilled worker with no relatives in the First World, you have to endure Third World poverty, win the immigration lottery, or break the law.
Do read the whole thing. It’s from the recent Cato Unbound symposium on “Authority, Obedience and the State.” The Cato Institute is probably one of three think tanks that actually puts out work I can count on (the other two being Brookings and Hoover). Their monthly Cato Unbound is one of the best symposiums on the web.